Chapter 1

Overview of new workplace:-a

highly com-petitive global
economy has created unpa-ralled
opportunities and un-precedented
uncertainties. -smart people and
smart or-ganizations cre-ate their
own futures. co-mpanies with a
future are committed to people,
have high performance expectations&provide supportive work
environment
-high performing companies gain
extraordi-nary results from people.
Whatre challenges working in
new econ
Intelectual capital: -peoplere the
ultimate foundations of
organizational performance
intellectual capital=the collective
brainpo-wer or shared knowledge
of a workplace that can be used to
create value. a know-ledge
worker adds to the intellectual
capi-tal of an organization.
Globalization: -national boundaries
of wor-ld business have largely
disappeared. glo-balization is the
worldwide interdependen-ce of
resource flows, product markets,
and business competition that
characterize the new economy.
Technology: - continuing
transformation of the modern
workplace through the inter-net,
WWB, computers, IT, increasing
dema-nd for knowledge workers
with the skills to fully utilize
technology.
Diversity: -workforce diversity
reflects diff-erences with respect
to gender, age, race, ethnicity,
religion, sexual orientation, and
able-bodiedness. a diverse and
multicul-tural workforce both
challenges and offers
opportunities to employers.
Diversity bias can occur in the
workplace by prejudice,
discrimination, glass ceiling.
Ethics: code of moral principles
that set st-andard of conduct.
Ethical expectations for modern
business: integrity&ethical leadership, natural environment,
consumer pro-tection, human
rights.
Careers: core workers, contract
workers, part-time workers. People
must be prepar-ed to be any one
of these types of workers people
must make sure that their skillsre
portable & of current value in
employment markets.
What are organizations like in
the new workplace?
Critical skills for success in the
new workpl-ace: mastery,
contacts/networking, enterpreunership, love of tech,
marketing, passi-on for renewal.
Organization: -a collection of
people work-ing together to
achieve a common purpose
organizations provide useful goods
and or services that return value
to society and satisfy costumer
needs. Open systems: -composed
of interrelated parts that functi-on
together to achieve a common
purpose. interact with their
environments. transf-orm
resource inputs into product
outputs (goods and services).

environmental feed-back tells

organization how well it is meeting the needs of customers and
society.
Organizational performance: value crea-tion is a very
important notion for organizations. value is created when an
organi-zation operations adds
value to the original cost of
resource inputs. when value creation occurs: business earn a profit,
nonpro-fit organizations add
wealth to society.
-productivity=an overall measure
of the q-uantity and quality of
work performance with resource
utilization taken intoaccount
performance effectiveness=an
output me-asure of task or goal
accomplishment. pe-rformance
efficiency=an input measure of
the resource cost associated with
goal accomplishment.

(organization as open system)

(productivity and the dimensions

of organi-zational performance)
Workplace changes that provide a
context for studying management:
belief in human capital, demise of
command and control, emphasis
on teamwork, preeminence of
technology, embrace of
networking, new workforce
expectations, concern for work-life
balance, priorities on
sustainability, focus on speed.
Who are managers and what
do they do?
Importance of human resources
and mana-gers: -toxic
workplaces treat employees as
costs. high performing
organizations treat people as
valuable strategic assets.
managers must ensure that people
are tre-ated as strategic assets.
A manager is a person in an
organization who directly supports
and helps activate the work efforts
and performance accomplishments of others. The people
who ma-nagers help are the ones
whose tasks re-present the real
work of the organization.
Levels of management: -top
managers=res-ponsible for
performance of an organizati-on as
a whole or for one of its larger
parts. middle managers=in
charge of relatively large
departments of divisions. team
lea-ders or supervisors=in charge

of a small work group of nonmanagerial workers.

Responsibilities of team leaders:
plan mee-tings and work
schedules, clarify goals and tasks,
and gather ideas for improvement,
appraise performance and counsel
team members, recommend pay
raises and new assignments,
recruit, develop, and train team
members, encourage high
performa-nce and teamwork,
inform team members about
organizational goals and expectations, inform higher levels of work
unit nee-ds and accomplishments,
coordinate with others teams and
support the rest of the
organization.
Types of managers: -line managers
are res-ponsible for work activities
that directly af-fect organizations
outputs. staff manager use
technical expertise to advise and
supp-ort the efforts of line
workers. functional managers are
responsible for a single area of
activity. general managers are
respon-sible for more complex
units that include many functional
areas. administrators work in
public&nonprofit organizations.
Managerial performance and
accountabili-ty: -accountablilty is
the requirement of 1 person to
answer to a higher authority for
relevant performance results.
effective managers fulfill
performance accountabili-ty by
helping others to achieve high
perfor-mance outcomes and
experience satisfac-tion in their
work.
Quality of Work Life: an indicator
of the overall quality of human
experiences in the workplace.
Indicators=fair pay, safe work-ing
conditions, opportunities to learn
and use new skills, room to grow
and progress in a career,
protection of individual rights,
pride in work itself and in the
organization.
High performing managers: build
working relationships with others,
help others de-velop their skills
and performance compe-tencices,
foster teamwork, create a work
environment that is performancedriven and provides satisfaction
for workers.
Corporate governance occurs
when a bo-ard of directors holds
top management ac-countable for
organizational performance.
The organization as an upsidedown pyra-mid: -each individual is
a value-added wor-ker a
managers job is to support
workers efforts. the best
managers are known for helping
and supporting.
What is the management
process?
Management is the process of
planning, organizing, leading, and
controlling the use of resources to
accomplish performance goals. All
managers are responsible for the
four functions. The functions are
carried on continually.
Functions of management:
-planning(the process of setting
objectives and determin-ing what
actions should be taken to accom-

plish them), -organizing(the

process of assi-gning tasks,
allocating resources, and arranging the coordinated activities of
individu-als and groups to
implement plans), -leadi-ng(the
process of arousing peoples
enthu-siasm to work hard and
direct their efforts to fulfill plans
and accomplish objectives),
-controlling(the process of
measuring work performance,
comparing results to objec-tives,
and taking corrective action
needed)
Managerial activities and roles:
-interpers-onal roles(involve
interactions with people inside and
outside the work unit), informational roles(involve giving,
receiving, and a-nalyzing of
information), decisional roles
(involve using information to make
decisi-ons in order to solve
problems or address
opportunities),
mintzberginterpersonal
(figurehead, leader, liaison),
informational (monitor,
disseminator, spokesperson), decisional (entrepreneur, disturbance
hand-ler, resource allocator,
negotiator).
Characteristics of managerial
work=work long hours, at an
intense pace, at fragmen-ted and
varied tasks, with many communication media, largely through
interpersonal
Agendas=development of action
priorities for ones job, include
goals and plans that span long and
short time frames. Networking=process of building and
maintaining positive relationships
with people whose help may be
needed to implement ones work
agendas.
Essential managerial skills: -skill
(the ability to translate knowledge
into action that re-sults in desired
performance), -technical skill (the
ability to apply a special proficiency or expertise to perform
particular tasks), -human skill (the
ability to work well in co-operation
with others), conceptual skill (ability to think critically and
analytically to solve complex
problems). Low-level=high
techinal, top-level=high
conceptual
Competency=a skill-based
capability that contributes to high
performance in a man-agement
job. Implicit in POLC, IID, agenda +
networking. For managerial
success: co-mmunication,
teamwork, self-manage-ment,
leadership, critical thinking,
profess-ionalism.
Chapter 2
Classical management
thinking:
Scientific management (Frederick
Taylor): develop rules of motion,
standardized wo-rk implements,
and proper working condit-ions for
every job, select&train, support
workers, train supervisor,
compensation
(Gilbreths)=motion study:science
of redu-cing a job or task to its
basic physical moti-ons,

eliminating wasted motions

improves performance.
Administrative principles (Henri
Fayol): rules=planning,
organization, command,
coordination, control.
Principles=scalar chain(clear and
unbroken line of communi-cation
from top to bottom), unity command (1 boss), unity direction (1 POC
with same performance objective).
(Mary Parker Follett): Groups and
human cooperation: -groups are
mechanisms thro-ugh which
individuals can combine their talents for a greater good.
organizations are cooperating
communities of managers&
workers. managers job is to help
people in the organization
cooperate and achieve an
integration of interest. Forwardlooking management insights:making every empl-oyee an owner
creates a sense of collective
responsibility (precursor of
employee own-ership, profit
sharing, and gain-sharing), business problems involve a variety
of inter-related factors (precursor
of systems think-ing), private
profits relative to public good
(precursor of managerial ethics
and social responsibility)
Bureaucratic organization (Max
Weber): bureaucracy= an ideal,
intentionally ration-al, and very
efficient form of organization.
Based on principles of logic, order,
and le-gitimate authority. Clear
division of labor, strict hierarchy of
authority, staffing by te-chnical
competency, formal rules and procedures, impersonal approach to
decision making.
1924Bureaucracy is a way to
rationalize the social environment
in a ma-nner that was similar to
technologys ratio-nalizing
influence on the physical environment. Iron CageBook:The
Theory of Social and Economic
Organization. Formal
rationality=analysis of information,
substa-ntive rationality=the use of
information in decision-making.
Formal rationality with-out
conscious consideration of
substantive rationality leads to an
iron cage capable of imprisoning
humanity. Characteristics of
Ideal=a fixed division of labor, a
clearly def-ined hierarchy of
offices, managers are ap-pointed,
officials are paid fixed salaries, the
office belongs to the office holder
and con-stitutes a career,
superiors give promotion, officials
are separated from ownership, a
set of general rules governing the
perform-ance of offices, strict
discipline and control.
From dictionary:1. A: a body of
non-electi-ve government officials.
B: an administra-tive policymaking group. 2. Government
characterized by specialization of
function, adherence to fixed rules,
and a hierarchy of authority. 3. A
system of administration m-arked
by officalism, red tape, and
prolifera-tion. Bureaucratic
organization=most gove-rnments,
almost every university, the Catholic Church, Large Business

Organization: IBM, GM, Boeing.

The Classic Bureaucracy: Fair,
impersonal, career managers,
clear di-vision of labor, promotion
based on merit, formal hierarchy
of authority, written rules and
standard procedures.
Characteristic of bureaucratic
organizations: clear division of
labor, clear hierarchy of authority,
form-al rules and procedures,
impersonality, ca-reers based on
merit. Possible disadvanta-ges of
bureaucracy: excessive paperwork
or red tape, slowness in handling
prob-lems, rigidity in the face of
shifting needs, resistance to
change, employee apathy.
Human Resource Approaches:
Hawthorne studies: initial study
examined how economic
incentives and physical con-ditions
affected worker output. No consistent relationship found.
Psychological fac-tors influenced
results. Relay assembly te-st room
studies:manipulated physical work
conditions to assess impact on
output, de-signed to minimize the
psychological factor of previous
experiment, factors that accounted for increased
productivity:group atm-osphere,
participative supervision. Employee attitudes, interpersonal
relations and group
processes:some things satisfied
so-me workers but not others,
people restri-cted output to adhere
to group norms. Le-ssons from
Hawthorne: social and human
concerns are keys to productivity,
hawth-orne effect=people who are
singled out for special attention
perform as expected.
Maslows theory of human needs:
a need is a physiological or
psychological deficiency a person
feels compelled to satisfy. Need
levels: high order=self
actualization:need for selffulfillment, to grow and use abilities to fullest and most creative
extent. Esteem: need for esteem
in eyes of others, need for respect,
prestige, recognition, need for selfesteem, personal sense of competence, mastery. Lower
order=social needs: need for love,
affection, sense of belongingness
in ones relationships with other
people, safety needs: need for
secur-ity, protection, and stability
in the events of day-to-day life.
Physiological needs: mo-st basic of
all human needs: need for biological maintenance:food, water,
and physic-al well being. Deficit
principle= a satisfied need is not a
motivator of behavior. Progr-ession
principle=a need becomes a
motiva-tor once the preceding
lower-level need is satisfied. Both
principles cease to operate at selfactualization level.
McGregors Theory X: people
dislike work, lack ambition, resist
change, act irresponsi-ble, prefer
to be led. Theory Y:people like to
work, creative, can change, accept
res-ponsibility, capable of selfdirection. Impli-cations: managers
create self-fulfilling pro-phecies,
theory X managers create situations where workers become

dependent & reluctant, theory Y

managers create situa-tions where
workers respond with initiati-ve
and high performance:central to
notions of empowerment & selfmanagement.

within the hierarchy all lower level

systems are embedded in systems of a higher order, lower level
systems can be applied to systems
of a higher orde, but not viceversa.

A self-fulfilling prophecy occurs

when a pe-rson acts in ways that
confirm anothers e-xpectations.
Argyriss theory of adult
personality:
Classical management principles
and prac-tices inhibit worker
maturation and are in-consistent
with the mature adult personali-ty.
Management practices should
accomo-date the mature
personality by: increasing task
responsibility, task variety, using
parci-pative decision making.
Behavioral Management
Approaches
Organizational behavior is the
study of ind-ividuals and groups in
organizations.
Quantitative analysis in
management
Management science (operations
research) foundations: scientific
application of math-ematical
techniques to management problems. Techniques and applications
include: mathematical forecasting,
inventory mode-ling, linear
programming, queuing theory,
network models, simulations.
Today=use of staff specialists to
help managers apply te-chniques,
software and hardware developments have expanded potential
quantitati-ve applications to
managerial problems, g-ood
judgment and appreciation for
human factors must accompany
use of quantitati-ve analysis.
Systems view and contingency
thinking:
System=collection of interrelated
parts th-at function together to
achieve a common purpose.
Subsystem=a smaller component
of a larger system. Open
systems=organi-zation that
interact with their environmen-ts
in the continual process of
transforming resource inputs into
outputs.
The General Systems Theory:
Aristotle (the whole is more than
the sum of its parts), bertallanfy1920(the system may be defin-ed
as a set of elements standing in
interrel-ation among themselves
and with the envi-ronment), the
interrelations are called str-ucture,
organizational structure:interrelations among organizational units,
divisions, managers, and
employess.
Bouldings Hierarchy of Systems
(1950): widely used to explain
major concepts of system theory.
It is organized by levels of
complexity and comprehesivenss.
Begins with the simplest system
and moves to gr-eater complexity,

Contingency thinking: tries to

match mana-gerial responses with
problems and oppor-tunities
unique to different situations, especially individual or environmental
differe-nces. Noone best way to
manage. Appro-priate way to
maage depends on the situa-tion.
Stable,
uncomplicated=bureaucratic,
changing, complex=flexible.
Continuing management
themes of 2000
Quality and performance
excellence: ma-nagers and
workers in progressive organizations are quality conscious,
quality and competitive advantage
are linked. Total qu-ality
management: comprehensive
appro-ach to continuous quality
improvement for a total
organization, creates context for
the value chain. Total quality
management=an organizationwide commitment to continu-ous
improvement, product quality, and
cu-stomer needs, continuous
improvement in-volves always
researching for new ways to
improve work quality and
performance. ISO certification
indicates conformance w/ a
rigorous set of international quality
stan-dards, knowledge
management=process of using
intellectual capital for competitive
advantage.
8 attributes of performance
excellence: a bias toward action,
closeness to the custo-mer
(location advantage), autonomy
and entrepreneurship
(empowerment), produ-ctivity
through people, hands-on& valuedriven, sticking to the knitting
(growing to-gether), simple form &
lean staff (suppor-tive, inspired),
simultaneous loose-tight
properties (flexible).
Global awareness: pressure for
quality& performance excellence is
created by a hi-ghly competitive
global economy. Has pro-moted
increasing interest in new management concepts:process
reengineering, vir-tual
organizations, agile factories
(quick m-oving), network firms.
Adoption of Theory Z management
practices.
Contemporary businesses must
learn to b-ecome learning

organizations. Core ingre-dients of

learning organizations:mental modes, personal mastery, systems
thinking, shared vision, team
learning. A learning or-ganization
continuously changes and improves, using the lessons of
experience. Evid-ence-based
management involves making
decisions based on hard facts
about what really works. In
2000an, managers must be: global
stra-tegist, masters of technology,
i-nspiring leaders, models of
ethical behave-or. Organizational
behavior: a critical tool, a systematic study of how people
behave in organizations based
on:psychology, soci-ology,
anthropology, and other social
scie-nces. OB uses their findings to
explain and predict:employee
performance factors (su-ch as
productivity, absenteeism, and
turn-over), employee attituteds
(job satisfaction and organizational
loyalty).
Chapter 3
Why and how do managers
plan?
Planning=the process of setting
objectives & determining how to
best accomplish it.
Objectives=identifiy the specific
results or desired outcomes that
one intends to achi-eve. Plan=a
statement of action steps to be
taken in order to accomplish
objectives.
Steps in the planning process:define your objectives, determine
where you stand vis--vis
objectives, develop premises
regard-ing future conditions,
analyze and choose among action
alternatives, implement the plan
and evaluate results.
Benefit of planning: improves
focus & flex-ibility, action
orientation, coordination, ti-me
management, control.
What types of plans do
managers use?
Short-range&long-range plans:
short-range plans(1 year o less),
intermediate-range p-lans(1-2
years), long-range(3/more years).
People vary in their capability to
deal eff-ectively with different time
horizons. High-er management
levels focus on longer time
horizons.
Strategic & operational plans:
strategic pl-ans(set broad,
comprehensive, and longer-term
action directions for the entire
organ-ization), operational plans
(define what ne-eds to be done in
specific areas to implem-ent
strategic plans: production plans,
finan-cial plans, facilities plans,
marketing plans, human resource
plans)
Policies and procedures: standing
plans (p-olicies&procedures thatre
designed for re-peated use),
policy(broad guidelines for making decisions&taking action in
specific ci-rcumstances),
rules/procedures(plans that
describe exactly what actions are
to be tak-en in specific situations).
Budgets and projects schedules:
single-use plans (only used once
to meet the needs & objectives of

a well-defined situation in a t-imely

manner), budgets (single-use
plans t-hat commit resources to
activities, project, or programs,
fixed, flexible, and zero-based
budgets), projects(1-time activities
that ha-ve clear beginning and end
points, project management and
project schedules).
Whatre the useful planning
tools&tech?
Forecasting:making assumptions
about wh-atll happen in the
future, qualitative fore-casting
uses expert opinions, quantitative
forecasting uses
mathematical&statistical analysis,
all forecasts rely on human judgment, planning involves deciding
on how to deal with the
implications of a forecast.
Contingency planning:identifying
alternati-ve courses of action that
can be implemen-ted to meet the
needs of changing circum-stances,
contingency plans anticipate changing conditions, contain trigger
points.
Scenario planning:a long-term
version of c-ontingency planning,
identifying alternati-ve future
scenarios, plans made for each future scenario, increases
organizations fle-xibility &
preparation for future shocks.
Benchmarking: use of external
comparison to better evaluate
current performance & identify
possible actions for the future, adopting best practices that achieve
superior performance.
Use of staff planners: coordinating
the pla-nning function for the total
organization or one of its major
components, possible communication gaps between staff
planners and line management.
Participation & involvement:
participatory planning requires
that the planning process include
people who will be affected by the
plans and/or will help implement
them, be-nefits of participation
and involvement: pr-omotes
creativity in planning, increases
av-ailable information, fosters
understanding, acceptance, and
commitment to final plan.
Great goals: attainable(realistic,
possible to accomplish),
challenging(include stretch,
focused on doing better),
measurable (no doubt when
accomplished, or missed), timely(linked to due date and
timetable), spe-cific(desired
outcomes clear to anyone)
Goal alignment between team
leader and team member: jointly
plan(set objectives, set standards,
choose actions), individually
set(perform tasks(member),
provide supp-ort(leader)), jointly
control (review results, discuss
implications, renew cycle)
How does management by
objectives?
MBO=a structured process or
regular com-munication,
supervisor/team leader&wor-kers
jointly set performance objectives,
review results.
Involves a formal agreement
specifying: workers performance
objectives for a spe-cific time

period, plans through which performance objectives will be

accomplished, standards for
measuring accomplishment of
performance objectives,
procedures for reviewing
performance results.
MBO process: supervisor&workers
jointly set objectives, establish
standards, and ch-oose actions,
workers act individually to perform tasks;supervisors act
individually to provide necessary
support, supervisor and workers
jointly review results, discuss implications, and renew the MBO cycle.
Types of MBO performance
objectives:imp-rovement, personal
development, mainte-nance.
Criteria for effective performance
objectives:specific, time defined,
challeng-ing, measurable.
Pitfalls to avoid in using MBO:
tying MBO to pay, focusing too
much attention on ea-sily
quantifiable objectives, requiring
exce-ssive paperwork, having
managers tell wor-kers their
objectives.
Advantages:focuses workers on
most imp-ortant tasks and
objectives, focuses super-visors
efforts on important areas of support, contributes to relationship
building, gives workers a
structured opportunity to
participate in decision making.
Chapter 9
Whatre the foundation of
strategic competitiveness?
Basic concepts of strategy:
competitive ad-vantage(operating
with an attribute/set of attributes
that allows an organization to outperform its rivals), sustainable
competit-ive advantage(one that is
difficult for com-petitors to
imitate), strategy(a comprehensive action plan that identifies
long-term d-irection for an
organization and guides res-ource
utilization to accomplish
organizati-onal goals with
sustainable competitive advantage), strategic intent(focusing
all orga-nizational energies on a
unifying&compelli-ng goal),
strategic management(the process of formulating and
implementing strate-gies to
accomplish long-term
goals&sustain competitive
advantage).
Goal of strategic management is
to create above-average returns
for investors: return exceeding
those for alternative opportunit-ies
at equivalent risk, earning aboveavera-ge returns depends in part
on the organiza-tions competitive
environment.
Environments&competitive
advantage: m-onopoly(only 1
player and no competition, creates
absolute competitive advantage),
oligopoly(few players not directly
compe-ting against each other,
long-term compe-titive advantage
in defined market segme-nt),
hypercompetition(several players
dire-ctly competing against each
other, any co-mpetitive advantage
is only temporary)
What is the strategic
management proses

Strategy formulation:the process

of creat-ing strategy, involves
assessing existing str-ategies,
organization, and environment to
develop new strategies and
strategic plans capable of
delivering future competitive
advantage.
Strategy formulation:identify and
analyze current:mission,
objectives, strategies, ana-lyze
internal and external
environments:or-ganizational
resources&capabilities (stren-ghts
and weaknesses), industry
&external
environment(opportunities and
threats), revise
mission&objectives, select new
stra-tegies:corporate, business,
functional. Stra-tegy
implementation:implement
strategi-es(corporate governance,
management sy-stems and
practices, strategic leadership),
evaluate results:strategic control,
renew st-rategic management
process.
Strategic question for strategy
formulation: what is our business
mission, whore our customers,
what do our customers consid-er
value, whatve been our results,
whats our plan?
Strategy implementation:the
process of all-ocating
resources&putting strategies into
action. All
organizational&management systems must be mobilized to
support&reinf-orce the
accomplishment of strategies.
Essential tasks for strategy
implementation
:identify organizational
mission&objective, assess current
performance vis--vis mission&objectives, create strategic
plans to ac-complish
purpose&objectives, implement
the strategic plans, evaluate
results; chan-ge strategic plans
&/implementation proc-cesses as
necessary.
Analysis of mission: the reason for
an orga-nizations existence. Good
mission statem-ents
identify:customers, products
&/servi-ces, location, underlying
philosophy. An i-mportant test of
the mission is how well it serves
the organizations stakeholders.
Analysis of values: values are
broad beliefs about what is/is not
appropriate. Strong core values for
an organization helps build
institutional identity, gives
character to an organization, and
it backs up the mission statement, organizational culture
reflects the dominant value
system of the organiza-tion as a
whole.
Organizational culture: shapes the
values of managers&other
organization members, point
people in common directions,
helps build institutional identity,
gives character to the organization
in the eyes of employe-es and
external stakeholders, backs up
the mission statement, guides the
behavior of organizational
members in meaningful &
consistent ways.

Analysis of objectives: operating

objectives direct activities toward
key and specific pe-rformance
results. Typical operating objectives:profitability, market share,
human ta-lent, financial health,
cost efficiency, prod-uct quality,
innovation, social responsibili-ty.
Strengths:manufacturing
efficiency, skilled workforce, good
market share, strong fina-ncing,
superior reputation. Weakness:outdated facilities, inadequate R&D,
obsolete technologies, weak
management, past p-lanning
failures.
Analysis of organizational
resources and capabilities:important goal of
assessing core competencies,
potential core competencies:special knowledge or expertise,
superior technology, efficient
manufacturing appro-aches,
unique product distribution
system.
Opportunities:possible new
markets, stro-ng economy, weak
market rivals, emerging
technologies, growth of existing
market. Threats:new competitors,
shortage of reso-urces, changing
market tastes, new regula-tions,
substitute products.
Analysis of industry and
environment:asse-ssment of
macro environment:technology,
government, social
structures&population
demographics, global economy,
natural en-vironment. Analysis of
industry environm-ent:resource
suppliers, competitors, customers.
What types of strategies are
used?
Porters model of 5 strategic forces
affect-ing industry
competition:suppliers(bargain-ing
power of suppliers), new
entrants(thre-at of potential new
competitors), customer
(bargaining power of buyers),
substitute p-roducts(threat of
substitute products or services)industry
competition(rivalry amo-ng
competing firms)
3 levels of strategy:corporate(what
busin-esses are we in),
business(how do we com-pete in
each of our major businesses),
fun-ctional strategy (how do we
best support each of our business
strategies)
Strategic implications of strategic
forces: unattractive industry(5
forces are favorable for the firm),
attractive industry(5 forcesre
unfavorable for the firm).
Question addressed by different
strategic level:corporate(in what
industries&market should we
compete), business(howre we
going to compete for customers in
this ind-ustry&market),
functional(how can we best utilize
resources to implement our
busine-ss strategy)
Growth&diversification
strategies:growth strategies(seek
an increase in size&the ex-pansion
of current operations), types of growth strategies:concentration
strategies, diversification

strategies(related, unrelat-ed,
vertical)
Restructuring&divestiture
strategies:readj-usting operations
when an organization is in trouble.
Retrenchment:correcting weaknesses by making changes to
current oper-ations, liquidation,
restructuring(downsizing&rightsizing), restructuring
through dive-stiture.
Global strategies:globalization
strategy (w-orld is one large
market; standardize prod-ucts and
advertising as much as possible,
ethnocentric view), multidomestic
strategy (customize
products&advertising to local
markets as much as possible,
polycentric), transnational
strategy (balance efficiencies in
global operations&responsiveness
to lo-cal markets, geocentric view).
Cooperative strategies:strategic
alliances (2 or more organizations
partner to pursue an area of
mutual interest),
types=outsourcing ,supplier,
distribution
E-business strategies:the strategic
use of Internet to gain competitive
advantage. Popular:B2B, B2C
Web based business
models(brokerage, a-dvertising,
merchant, subscription, infomediary, community).
How are strategies
formulated?
Opportunities for achieving
sustainable competitive
advantage:cost&quality, knowledge&speed, barriers to entry,
financial resources.
Porters generic strategies
model:business level strategic
decisions are driven by:mar-ket
scopet, source of competitive
advanta-ge; market
scope(broad&narrow) and sou-rce
of competitive advantage (low
price & unique product) combine
to generate 4 generic strategies.
Porters generic strategies for
gaining com-petitive
advantage:differentiation strategy,
cost leadership strategy, focused
different-iation strategy, focused
cost leadership st-rategy.
Portfolio planning
approach:designed to help
managers decide on investing
scarce organizational resources
among competing business
opportunities, useful for multibusiness or multiproduct situations.
BCG matrix:ties strategy
formulation to an-alysis of
business opportunites according
to: industry/market growth
rate:low vs high, market share:low
vs high
BCG matrix:business
conditions&related st-rategies:
stars(high share/high growth businesses, preferred strategygrowth), cash cows(high share/low
growth businesses, p-referred
strategy-stability/modest growth),
question marks (low share/high
growth bu-sinesses, preferred
strategy-growth for pr-omising
question marks&restructuring or
divestiture for others), dogs(low
share/low growth businesses,

preferred strategy-re-trenchment
by divestiture).
Types of adaptive strategies:
prospector (pursuing
innovation&new opportunities in
the face of risk&with prospects for
growth) defender (protecting
current market share by
emphasizing existing
products&current share without
seeking growth), analyzer
(maintaining stability of a core
business w-hile exploring selective
opportunities for innovation&change),
reactor(merely respo-nding to
competitive pressure in order to
survive).
Incrementalism(modest&incremen
tal cha-nges in strategy occur as
managers learn from
experience&make adjustments),
em-ergent strategies(develop
progressively o-ver time in the
streams of decisions that managers make as they learn
from&respond to work situations)
Whatre current issues in
strategy implementation
Strategic planning failures that
hinder str-ategy implementation:
failures of substan-ce(inadequate
attention to major strategic
planning elements), failures of
process (po-or handling of strategy
implementation:la-ck of
participation&goal
displacementerror
Corporate governance: system of
control& performance monitoring
of top managem-ent, done by
boards of directors and other
major stakeholder representatives,
contro-versies regarding roles of
inside directors & outside
directors, increasing emphasis on
corporate governance in
contemporary bu-sinesses.
Strategic leadership:the capability
to inspi-re people to successfully
engage in a proc-ess of continuous
change, performance enhancement,&implementation of
organiza-tional strategies.
Critical tasks of strategic
leadership:be a g-uardian of tradeoffs, a teacher, great communicator, create a sense of
urgency, ens-ure that everyone
understand the strategy)
Chapter 10
What is organizing as fungsi
manajemen
Organizing=the process of
arranging peop-le & other
resources to work together to accomplish a goal. Organization
structure: the system of tasks,
workflows, reporting r-elationships,
& communication channels t-hat
link together diverse
individuals&group
Formal structures: the structure of
the org-anization in its official
state, an organizati-on
chart=diagram describing
reporting re-lationships and the
formal arrangement of work
positions within an organization,
ide-ntifies:the division of work,
supervisory re-lationships,
communication channels, maj-or
subunits, levels of management.
Informal structures: a shadow
organiza-tion made up of the

unofficial, but often cr-itical,

working relationships between
orga-nization members. Potential
advantages: helping people
accomplish their work, overcoming limits of formal structure,
gaining access to interpersonal
networks, informal learning.
Disadvantages: may work against
best interests of entire
organization, susce-ptibility to
rumor, may carry inaccurate information, breed resistance to
change, div-ersion of work efforts
from important obj-ectives, feeling
of alienation by outsiders.
Whatre major types of
struktur organisasi
Functional structures:people with
similar s-kills&performing similar
tasksre grouped t-ogether into
formal work units, members work
in their functional areas of
expertise, are not limited to
businesses, work well for small
organizations producing few
product or services). Advantages:
economies of sc-ale, task
assignments consistent with expertise&training, high-quality
technical prob-le solving, in-depth
training&skill develop-ment, clear
career paths within functions.
Disadvantages: difficulties in
pinpointing r-esponsibilities,
functional chimneys probl-ems,
sense of cooperation and common
p-urpose break down, narrow view
of perfo-rmance objectives,
excessive upward refe-rral of
decisions.
Divisional structures:group
together peo-ple who work on the
same product or pro-cess, serve
similar customers, and/or are
located in the same area or
geographical region, common in
complex organization, avoid
problems associated w/ functional
structures. Advantage: more
flexibility in responding to
environmental changes, im-proved
coordination, clear points of responsibility, expertise focused on
specific c-ustomers, products, and
regions, greater ease in
restructuring. Disadvantage: duplication of resources&efforts across
divisi-ons, competition and poor
coordination ac-ross divisions,
emphasis on divisional goals at
expense of organizational goals.
Types: product structures focus on
a single prod-uct or service,
geographical structures fo-cus on
the same location or geographical
region, customer structures focus
on the same customers/clients,
process structu-res focus on the
same processes.
Matrix structure:combines
functional&di-visional structures to
gain advantages&mi-nimize
disadvantages of each, used in:
ma-nufacturing, service industries,
profession-al fields, non-profit
sector, multi-national corporations.
Advantage:better cooperati-on
across functions&customer
service&pe-rformance
accountability, improved decisi-on
making&strategic management,
increa-sed flexibility in
restructuring. Disdavanta-ge: 2boss system is suspectivle to

power struggles, can create task

confusion&conf-lict in work
priorities, team meetingsre ti-me
consuming, may develop
groupitis, increased costs due to
adding team leers to structure.
Whatre new developments in
structure?
Guidelines for horizontal
structures: focus the organization
around processes, not fu-nctions,
put people in charge of core processes, decrease
hierarchy&increase the use of
teams, empower people to make
decisi-ons critical to performance,
utilize informa-tion technology,
emphasize multiskilling & multiple
competencies, teach people how
to work in partnership with others,
build a culture of openness,
collaboration, and pe-rformance
commitment.
Team structures: extensively use
permane-nt and temporary teams
to solve problems, compete
special projects, and accomplish
day-to day tasks. Often use crossfunction-al teams. Potential
advantage: eliminates difficulties
with communication&decision
making, eliminates barriers
between oper-ating departments,
improved morale, grea-ter sense
of involvement&identification, increased enthusiasm for work,
improved quality&speed of
decision making. Disadv-antages:
conflicting loyalties among members, excessive time spent in
meetings, eff-ective use of time
depends on quality of interpersonal relations, group
dynamics, and team management.
Network structures: a central core
that is li-nked through networks of
relationships w/ outside
contractors&suppliers of essential
services, own only core
components&use strategic
alliances or outsourcing to provi-de
other components. Advantage:
firms can operate with fewer fulltime employe-es and less complex
internal systems, redu-ced
overhead costs and increased
operat-ing efficiency, permits
operations across g-reat distances.
Disadvantages: control&coordination problems may arise
from netw-ork complexity,
potential loss of control ov-er
outsourced activities, potential
lack of loyalty among infrequently
used contracto-rs, excessively
aggressive outsourcing can be
dangerous.
Deadly sins of outsourcing:
outsourcing ac-tivities thatre part
of the core, to untrust-worthy
vendors, not having good
contracts with the vendor,
overlooking impact on ex-isting
employees, not maintaining
oversig-ht, losing control to
vendors, overlooking hidden costs
of managing contracts, failing to
anticipate need to change
vendors, cea-se outsourcing.
Boundaryless organization:
eliminate inter-nal boundaries
among subsystems&extern-al
boundaries w/ external
environment. A combination of
team&network structures, with the

addition of temporariness. Key

requirements: absence of
hierarchy, empo-werment of team
members, technology ut-ilization,
acceptance of impermanence. Encourage creativity, quality,
timeliness, flexi-bility,&efficiency,
knowledge sharing is bo-th a
goal&essential component. Virtual
or-ganization:a special form of
boundaryless organization,
operates in a shifting netwo-rk of
external alliances thatre
enganged as needed, using IT and
internet.
What organizing trendsre
changing the workplace?
Shorter chains of command:the
line of aut-hority that vertically
links all persons with successively
higher levels of management.
Organizing trend:organizations are
being streamlined by cutting
unnecessary leve-ls of
management, flatter structures
are vi-ewed as a competitive
advantage.
Less unity of command:each
person in an organization should
report to one and on-ly one
supervisor, organizing trend:
organi-zationsre using more crossfunctional tea-ms, task forces, and
horizontal structures,
organizations are becoming more
custom-er conscious, employees
often find thems-elves working for
more than one boss.
Wider spans of control: the
number of per-sons directly
reporting to a manager. Organizing trend: many organizations
are shifti-ng to wider spans of
control as levels of m-anagement
are eliminated, managers have
responsibility who operate with
less direct supervision.
More delegation&empowerment:
delegat-ion is the process of
entrusting work to ot-hers by
giving them the right to make
deci-sions and take action. The
manager assigns responsibility,
grants authority to act, &cr-eates
accountability. Authority should be
commensurate with responsibility.
A com-mon management failure is
unwillingness to delegate,
delegation leads to empowerment, organizing trend:managers
are dele-gating more and finding
more ways to em-power people at
all levels.
Guidelines for effective delegation:
careful-ly choose the person to
whom you delega-te, define the
responsibility; make the assignment clear, agree on
performance objec-tives and
standards, agree on a performance timetable, give authority; allow
the oth-er person to act
independently, show trust in the
other person, provide performance
feedback, recognize and reinforce
progres, help when things go
wrong, dont forget your
accountability for performance
result.
Decentralization with
centralization: centr-alization is the
concentration of authority for
making most decisions at the top
levels of the organization.
Decentralization=the dispersion of

authority to make decisions

throughout all levels of the
organization. Not an either/or
choice. Organizing trend:
delegation, empowerment, and
horizontal structures contribute to
more decentralize-tion in
organizations, advances in
informat-ion technology allow for
the retention of c-entralized
control.
Reduced use of staff: Specialized
staff (pe-ople who perform a
technical service or pr-ovide
special problem solving expertise
to other parts of the organization).
Personal staff(people working in
assistant-to po-sitions that
provide special support to high-er
level managers). May disagree
over staff authority
(advisory+functional). No one best solution for dividing line-staff
responsibi-lities. Organizing trend:
organizations are reducing staff
size, are seeking increased operating efficiency by employing
fewer sta-ff personnel and smaller
staff units.
Chapter 13
What is the nature of
leadership?
Leadership=the process of
inspiring others to work hard to
accomplish important task.
Contemporary leadership
challenges: shor-ter time frames
for accomplishing things,
expectations for success on the
first atte-mpt, complex,
ambiguous, and multidime-nsional
problems, taking a long-term view
while meeting short-term
demands.
Visionary leadership: vision(a
future that 1 hopes to
create/achieve in order to improve upon the present state of
affairs), visio-nary leadership (a
leader who brings to the situation
a clear&compelling sense of the future as well as an understanding
of the a-ctions needed to get there
successfully. Ch-allenges:challenge
the process, show enth-usiasm,
help others to act, set the example
,celebrate achievements.
Power=ability to get someone else
to do s-omething you want
done/make things hap-pen the
way you want. Should be used to influence&control others for the
common good rather seeking to
exercise control for personal
satisfaction. Sources of managerial power:position, personal.
Position power=based on a
managers offi-cial status in the
organizations hierarchy of
authority. Sources=reward
power(capabili-ty to offer
something of value), coercive power(capability to punish/withhold
positi-ve outcomes), legitimate
power(organizati-onal
position/status confers the right to
co-ntrol those in subordinate
positions).
Personal power=based on the
unique pers-onal qualities that a
person brings to the l-eadership
situation. Sources=expert power
(capacity to influence others
because of 1s knowledge&skills),
referent power (capaci-ty to

influence others because they

admire you & want to identify
positively with you).
Turning power into influence:
successful le-adership relies on
acquiring&using all sour-ces of
power, use of reward
power/legitim-ate power produces
temporary compliance ,use of
coercive power produces at best
te-mporary compliance, often
accompanied by resentment, use
of expert/referent po-wer has the
most enduring results&genera-tes
commitment.
Keys to building managerial
power: theres no substitute for
expertise, likable personal
qualitiesre very important,
effort&hard w-ork breed respect,
personal behavior must support
expressed values. Power and influencere affected by workplace
structures& networks:centrality,
criticality, visibility.
Acceptance theory of authority: for
a lead-er to achieve true influence,
the other per-son must:truly
understand the directive, f-eel
capable of carrying out the
directive, b-elieve the directive is
in the organizations best interest,
believe the directive is consi-stent
with personal values.
Empowerment:the process through
which managers enable&help
others to gain po-wer&achieve
influence. Effective leaders
empower others by providing them
with: information, responsibility,
authority, trust.
How leaders can empower others:
involve others is selecting their
work assignments & task methods,
create an environment of
cooperation, information sharing,
discussi-on, & shared ownership of
goals, encoura-ge others to take
initiative, make decisions, & use
their knowledge, find out what
othe-rs think and let them help
design solutions, give others the
freedom to put their ideas &
solutions into practice, recognize
succes-ses& encourage high
performance.
Whatre the important
leadership traits &
behaviours?
Traits thatre important for
leadership suc-cess:drive, selfconfidence, creativity, cog-nitive
ability, business knowledge,
motiva-tion, flexibility,
honesty&integrity.
Leadership behavior: theories
focus on ho-w leaders behave
when working with follo-wers.
Leadership stylesre recurring
patter-ns of behaviors exhibited by
leaders. Basic dimensions:concern
for the task to be acc-omplished,
concern for the people doing t-he
work. Task concerns:plans&defines
wo-rk to be done, assign task
responsibilities, sets clear work
standards, urges task com-pletion,
monitors performance results. People concerns: acts
warm&supportive tow-ard
followers, develops social rapport
with followers, respects the
feelings of followers ,is sensitive to
followers needs, show trust

Blake and Mouton Leadership Grid:

Team management (high task
concern; high peo-ple concern),
authority-obedience manage-ment
(high task concern, low people
conc-ern), country club
management (high peo-ple
concern, low task concern),
impoveris-hed management (low
task, low people), middle of the
road management (non-com-mital
for both task&people concern)
Classic leadership styles:autocratic
styles (emphasized task over
people, keeps authority&information within the
leaders tight control, & acts in a
unilateral command-&-control
fashion), laissez-faire (shows little
concern for task, lets the group
make deci-sions, &acts with a do
the best you can & dont bother
me attitude), democratic st-yle
(committed to task&people,
getting thi-ngs done while sharing
information, encou-raging
participation in decision making, &
helping people develop
skill&compentency
Whatre the contingency
theories?
Fiedler's contingency model: good
leaders-hip depends on a match
between leadersh-ip&situational
demands. Determining lea-dership
style: low LPC=task-motivated leaders, high LPC=relationshipmotivated lea-ders. Leadership is
part of ones personali-ty, and
therefore relatively enduring&difficult to change. Leadership style
must be fit to the situation.
Diagnosing situational co-ntrol:
quality of leader-member relations
(good/poor), degree of task
structure (high /low), amount of
position power (strong/ weak).
Task oriented leadersre most
succ-essful in: very favorable (high
control) situ-ations, very
unfavorable (low control) situations. Relationship-orientedre
most succ-essful in situations of
moderate control.
Hersey-Blanchard situational
leadership model: leaders adjust
their styles dependi-ng on the
readiness of their followers to perform in a given situation.
Readiness-how able, willing and
confident followers are in
performing tasks. Leadership
styles: deleg-ating (low task, lowrelationship style, work best in
high readiness-situations,
followers able, willing, confident),
participating (low-task, highrelationship style, work best in low
to moderate readiness, followers
able, unwilling, insecure), selling
(high-task, hi-gh-relationship, work
best in moderate- to highreadiness, followers unable,
willing, c-onfident), telling (hightask, low relationsh-ip, work best
in low-readiness, followers unable,
unwilling, insecure).
Houses path-goal leadership
theory: effec-tive leadership deals
with the paths throu-gh which
followers can achieve goals. Leadership styles for dealing with pathgoal rel-ationship: directive,
supportive, achievem-entoriented, participative. Follower

conti-ngencies:ability, experience,
locus at contr-ol. Environmental
contingencies: task stru-cture,
authority system, work group.
Com-bined into leader
effectiveness. Directive
leadership:communicate
expectations, give directions,
schedule work, maintain performance standards, clarify leaders
role. Sup-portive leadership: make
work pleasant, tr-eat group
members as equals, be friendly&
approachable, show concern for
subordin-ates well-being.
Achievement-oriented: set
challenging goals, expect high
perform-ance levels, emphasize
continuous impro-vement, display
confidence in meeting hi-gh
standars. Participative:involve
subordi-nates in decision making,
consult with subordinates, ask for
subordinates sugges-tions, use
subordinates suggestion. When to
use Houses:use directive
leadership wh-en job assignments
are ambiguous, use su-pportive
leadership when worker self-confidence is low, use participative
leadership when performance
incentives are poor, u-se
achievement-oriented leadership
when task challenge is insufficient.
Substitutes for leadership: ascepts
of the work setting&the people
involved that can reduce the need
for a leaders personal involvement. Possible leadership
substitutes: subordinate, task,
organizational characte-ristics.
Vroom-Jago leader-participation
theory: helps leaders choose the
method of decisi-on making that
best fits the nature of the problem
situation. Basic decision-making
choices:authority, consultative,
group.
Decision-making options in the
Vroom-Jago :decide alone, consult
individually, consult with group,
facilitate, delegate. Contingen-cy
factors in the Vroom-Jago leaderpartici-pation theory: decision
quality(who has the information
needed for problem solving),
decision acceptance (importance
of subor-dinate acceptance to
eventual implement-ation),
decision time (time available to
ma-ke and implement the
decision). According to VroomJago, authority-oriented is used
when:the leader has greater
expertise to s-olve a problem, the
leader is confident&ca-pable of
acting alone, others are likely to accept & implement the decision,
little/no time is available for
discussion. Group-oriented&participative decision is
used when: the leader lacks
sufficient information to s-olve a
problem by him/herself, the problem is unclear & help is needed to
clarify t-he situation, acceptance
of the decision & commitment by
others is necessary for implementation, adequate times
available for true participation.
What is transformational
leadership?
Benefits of participative decision
methods: help improve decision
quality&acceptance, helps develop

leadership potential. Disadvantages:lost efficiency, not

particularly us-eful when problems
must be solved imme-diately.
Superleaders:people whose vision
& stren-ght of personality have an
extraordinary i-mpact on others.
Charismatic leaders:dev-elop
special leader-follower relationship
& inspire others in extraordinary
ways.
Transactional leadership:someone
who dir-ects the efforts of others
through tasks, re-wards, and
structures. Transformational leadership:someone whos truly
inspiration-al as a leader & who
arouses others to seek
extraordinary performance
accomplishmen
Characteristics of transformational
leaders: vision, charisma,
symbolism, empowerme-nt,
intellectual stimulation, integrity.
Whatre current issues in
leadership?
Emotional intelligence: the ability
of peop-le to manage
themselves&their relationsh-ip
effectively. Components of
emotional in-telligence:selfawareness, self-regulation,
motivation, empathy, social-skill.
Gender&relationship:both
women&men c-an be effective
leaders, women tend to use
interactive leadership (a style that
shares qualities with
transformational leadersip), men
tend to use transactional
leadership, interactive leadership
provides a good fit with the
demands of a diverse workforce&
the new workplace. Future
leadership suc-cess will depend on
a persons capacity to lead
through:openness, positive
relations-hips, support,
empowerment.
Druckers old-fashioned
leadership: lead-ership is more
than charisma; it is good-oldfashioned hard work. Essentials of
old-fashioned
leadership:defining&esta-blishing
a sense of mission, accepting leadership as a responsibility rather
than a rank, earning&keeping the
trust of others.
Moral leadership: ethical
leadership adher-es to moral
standards meeting the test of
good rather than bad&right
rather t-han wrong. All leaders are
expected to ma-intain high ethical
standards, long-term, s-ustainable
success requires ethical behavi-or.
Integrity involves the leaders
honesty, credibility, & consistency
in putting values into action.
Leaders with integrity earn the
trust of their followers. Leaders
have a mo-ral obligation to build
performance capaci-ties by
awakening peoples potential. Authentic leadership activates
performance t-hrough the positive
psychological states of confidence,
hope, optimism, and resilience
.Authentic leadership helps in
clearly fram-ing&responding to
moral dilemmas, and s-erving as
ethical role models.
Chapter 14
What is motivation?

Basic motivational concepts:

motivation(t-he forces within the
individual that account for the
level, direction, and persistence of
effort expended at work), reward(a
work outcome of positive value to
the individual) ,extrinsic rewards
(valued outcomes given to
someone by another person),
intrinsic rewards (valued outcomes
that occur natu-rally as a person
works on a task).
To achieve maximum motivational
potenti-al in linking rewards to
performance: resp-ect diversity &
individual differences to be-st
understand what people want from
wor-k, allocate rewards to satisfy
the interests of both individuals &
the organization.
Types of motivation theories:
content the-ories (human
needs&how people with diff-erent
needs may respond to different
work situations), process theories
(how people give meaning to
rewards&make decisions on
various work-related behaviors),
reinfo-rcement theory (how
peoples behavior is influenced by
environmental consequences
Whatre the different types of
individual needs?
Needs: unfulfilled
psychological&psycholo-gical
desires of an individual, explain
work-place behavior&attitudes,
create tensions that influence
attitudes&behavior, good
managers&leaders facilitate
employee need satisfaction. Types
of content theori-es: hierarchy of
needs theory, ERG theory, 2-factor
theory, acquired needs theory
Hierarchy of needs theory:
developed by Abraham Maslow.
Lower-order&higher-or-der needs
affect workplace behavior&attitudes. Self-actualization needs:
creative& challenging work,
participation in decision making,
job flexibility&autonomy. Esteem
needs:responsibility of an
important job, promotion to higher
status job, praise & r-ecognition
from boss. Social needs:friendly
coworkers, interaction with
customers, pl-easant supervisor.
Safety needs: safe work-ing
conditions, job security, base
compens-ation&benefits.
Physiological needs: rest&
refreshment breaks, physical
comfort on the job, reasonable
work hours.
ERG theory: developed by Clayton
Alderfer. 3 need levels: existence
needs (desires for
physiological&material well-being),
relate-dness needs (desires for
satisfying interpe-rsonal
relationships), growth needs
(desir-es for continued
psychological growth&development). Any/all needs can
influence b-ehavior at 1 time.
Frustration-regression principle: an
already satisfied lower-level need
becomes reactivated when a
higher-level need is frustrated.
2-factor theory: developed by
Frederick Herzberg. Hygiene
factors: elements of the job
context, sources of job
dissatisfaction. Satisfier factors:

elements of the job conte-nt,

sources of job
satisfaction&motivation. Job
dissatisfaction: working conditions,
co-worker relations, policies&rules,
supervisor quality, base wage,
salary. Job satisfaction:
achievement, recognition,
responsibility, work itself,
advancement, personal growth.
Acquired needs theory: developed
by david McClelland. People
acquire needs through their life
experiences. Needs thatre acquired:need for achievement (nAch),
need for power (nPower), need for
affiliation (nAff). nAch= desire to
do something better/more
efficiently, to solve problems, or to
master complex tasks. People high
in nAch prefer work that:involves
individual responsibility for results,
achievable but challenging goal,
provides feedback on
performance. nPow-er: desire to
control other people, to influ-ence
their behavior, or to be responsible
for other people. Personal power
vs social power. High in nPower
prefers: involves c-ontrol over
other people, has an impact on
people&events, brings public
recognition& attention. nAff:desire
to establish&mainta-in
friendly&warm relations with other
peo-ple. High in nAff prefers:
involves interper-sonal
relationships, provides for
compani-onship, brings social
approval.
Questions for summarizing the
content th-eories of motivation:
how many different i-ndividual

needs are there? Can a work outcome/reward satisfy more than 1

need? Is there a hierarchy of
needs? How important are the
various needs?
Whatre the process theories
of motivasi?
Process theories of motivation:
how peop-le can make choices to
work hard/not. Ch-oices are based
on: individual preferences,
available rewards, possible work
outcomes .Types of process
theories: equity, expecta-ncy,
goal-setting.
Equity theory: developed by J.
Stacy Adams . When people
believe that theyve been t-reated
unfairly in comparison to others,
th-ey try to eliminate the
discomfort&restore a perceived
sense of equity to the situation
:perceived inequity&equity. People
respo-nd to perceived negative
inequity by chan-ging:work inputs,
rewards received, comp-arison
points, situation. Managerial
implic-ations: underpaid people
experience anger ,overpaid people
experience guilt, percep-tions of
rewards determine motivational outcomes, negative consequences
of equity comparisons should be
minimized, if not e-liminated, do
not underestimate the impa-ct of
pay as a source of equity
controversi-es in the
workplace:gender equity, comparable worth.
Expectancy theory: developed by
Victor Vroom. Key expectancy
theory variables:
expectancy(belief that working

hardll res-ult in desired level of

performance), instrumentality(belief that successful
performan-cell be followed by
rewards), valence(val-ue a person
assigns to rewards&other wo-rk
related outcomes). M=E x I x V. If
either E, I, V is low, motivationll
be low. Manage-rial implications of
expectancy theory: to maximize
expectancy, managers should: select workers with ability, train
workers to use ability, support
work efforts, clarify pe-rformance
goals. To maximize instrumentality, managers should: clarify
psychologi-cal contracts,
communicate performanceoutcome possibilities, identify
rewards that are contingent on
performance. To maxim-ize
valence in positive direction,
managers should: identify
individual needs, adjust re-wards
to match individual needs.
Goal-setting theory: developed by
Edwin Locke. Properly set&wellmanaged task go-als can be highly
motivating. Motivational effects of
task goals: provide direction to
people in their work, clarify
performance expectations,
establish a frame of referen-ce for
feedback, provide a foundation for
behavioral self-management. Key
issues & principles in the goalsetting process: set
specific&challenging goals, build
goal acc-eptance&commitment,
clarify goal priori-ties, provide
feedback on goal accomplishment, reward goal
accomplishment. Parti-cipation in

goal setting:unlocks the motivational potential of goal setting,

MBO prom-otes participation,
when participation isnt possible,
workersll respond positively if supervisory trust and support exist.
What role does reinforcement
play?
Fundamentals of reinforcement
theory: re-inforcement theory
focuses on the impact of external
environmental consequences on
behavior. Law of effect(impact of
type of consequence on future
behavior). Oper-ant conditioning:
developed by B.F. Skinner .Applies
law of effect to control behavior by
manipulating its consequences.
Operant conditioning strategies:
+:incre-ases the frequency of a
behavior through the contingent
presentation of a pleasant
consequence. -:increases the
frequency of a behavior through
the contingent present-ation of an
unpleasant consequence. Punishment: decreases the frequency
of a beh-avior through the
contingent presentation of an
unpleasant consequence.
Extinciton: decreases the
frequency of a behavior th-rough
the contingent removal of an pleasant consequence.
Successful implementation of +
reinforce-ment is based on: law of
contingent reinf-orcement: reward
deliverd only if desired behavior is
exhibited, law of immediate reinforcement: more immediate the
delivery of a reward, the more
reinforcement value it has.

Guidelines for using +

reinforcement: cle-arly identify
desired work behaviors, main-tain
a diverse inventory of rewards,
inform everyone about what must
be done to get rewards, recognize
individual differences when
allocating rewards, follow the laws
of immediate&contingent
reinforcement.
Schedules of reinforcement:
continuous re-inforcement
administers a reward each ti-me a
desired behavior occurs,
intermittent reinforcement rewards
behavior only peri-odically,
acquisition of behavior is quicker
with continuous reinforcement,
behavior acquired under an
intermittent schedule is more
permanent.
Guidelines for using punishment:
tell the person what is being done
wrong/right, m-atch the
punishment to the behavior, administer punishment in private,
follow laws of
immediate&contingent
reinforcement.
Ethical issues in reinforcement:
ignores in-dividuality, restricts
freedom of choice, ig-nores the
possibility of other types of motivation. Key concern is whether its
ethical to not control behavior well
enough to ser-ve both
individual&organizational goals.
Whatre the challenges of
motivation in the new
workplace?
Integrated model of motivation:
motivati-on leads to work effort

that, when combi-ned with

appropriate individual abilities&
organizational support, leads to
performa-nce accomplishment.
The motivational im-pact of any
rewards received for this performance accomplishment depends
on equi-ty&reinforcement
considerations. Ultimat-ely,
satisfaction with rewards should
lead to increased motivation to
work hard in the future.
Pay for performance: paying
people for pe-rformance is
consistent with: equity, expectancy, reinforcement theory. Merit
pay: a-wards a pay increase in
proportion to indiv-idual
performance contributions,
provides performance contingent
reinforcement, may not succeed
due to weaknes in perfor-mance
appraisal system or lack of
consiste-ncy in application.
Incentive compensation systems:
skill-bas-ed pay:links pay to the
number of job-rele-vant skills an
employee masters. Bonus pay
plans: 1-time/lump-sum payments
based on the accomplishment of
specific perfor-mance
targets/some extraordinary contribution. Profit-sharing
plans:some/all emp-loyees receive
a proportion of net profits earned
by the organization. Gain-sharing
plans:groups of employees share
in any sa-vings realized through
their efforts to red-uce
costs&increased productivity.
Employ-ee stock ownership plans:
employess own stock in the
company that employs them.