MGT 231 FINAL EXAM REVIEW

PATH-GOAL THEORY OF LEADERSHIP

formulated by Martin G. Evans and Robert J.
House
a contingency theory based on expectancy
theory of motivation that relates several
leadership styles to specific employee and
situational contingencies
two major roles:
o create a goal orientation
o improve path toward the goals
The
1.
2.
3.
4.

Path-Goal Leadership Process

Leader identifies employee needs
Appropriate goals are established
Leader connects rewards with goals
Leader provides assistance on employee path
toward goals
5. Employee become satisfied and motivated, and
they accept the leader
6. Effective performance occurs
7. Both employees and organization are better
able to reach their goals

Goal Setting

Human behavior is goal-directed

individual must understand the goals that they

can attain
Path Improvement

Task support assembling elements to get

the job done

Psychological support treating

subordinates like they are rational human
beings w/ the ability to do the job

Role modeling effective leaders serve as

role models by engaging in desirable
behaviors. If a leader is considerate &
supportive w/ followers, their responses will
likely to be similar
Leadership Styles
1. Directive same as the task-oriented
leadership; clear role perceptions in employee
performance
2. Supportive same as people-oriented
leadership; concern for employees well-being
and needs, while trying to create a pleasant
work environment
3. Achievement-oriented applies goal-setting
theory as well as positive expectations in selffulfilling prophecy
4. Participative invites employees to provide
input to decisions, and seriously seeks to use
their suggestions as final decisions are made
Contingency Factors
Two major factors that moderate the leaders style
and effectiveness:
1. General work environment leader must
identify:
a. Whether the employees task is already
structured or not

b.

Whether the formal authority system is

most compatible with a directive or
participative approach
c. Whether the existing work group already
provides satisfaction of employee social
& esteem needs
2. Specific characteristics of the employee
Based on Newstrom and Davis:
a. Locus of control
i. Internal locus participative style
ii. External locus directive style
b. Willingness to accept the influence of
others
i. High directive style
ii. Low participative style
c. Self-perceived task ability
i. High supportive style
ii. Low achievement oriented
style
Directive leadership leader focus on clear task
assignments, standards of successful performance &
work schedules
Supportive leadership leader demonstrates
concern for employees well-being & needs, while
trying to create a pleasant work environment
Achievement-oriented leadership leader sets
high expectations for employees, communicates
confidence in their ability to achieve challenging
goals & enthusiastically models the desired behavior
Participative leadership leader invited
employees to provide input to decisions & seriously
seeks to use their suggestions as final decisions are
made
Selected Contingencies of Path-Goal Theory
Employee contingencies
1. Skill and experience
a. Inexperience and unskilled directive
and supportive
b. Experience and skilled participative and
achievement-oriented
2. Locus of control
a. Internal participative and achievementoriented
b. External directive and supportive
Environmental contingencies
3. Task structure
a. Non-routine task directive and
participative
b. Highly routine and simple jobs
supportive
4. Team dynamics
a. Positive norms participative
b. Negative norms directive
Limitations

One/two contingencies have limited research

support

Other contingencies and leadership styles in

path-goal theory have not received scholarly
investigation at all

The model may be too complex to use

VROOMS DECISION-MAKING MODEL/
LEADERSHIP-PARTICIPATION MODEL

Originally the Vroom-Yetton (VY) model of

situational leadership
Developed in 1873 to help managers decide
when and to what extent they should involve
employees in solving a particular problem
In 1998, became the Vroom-Jago model when
they criticized the path-goal theory
Decision Methods

Autocratic consult no one, decide alone

o AI manager makes a decision & does
not seek information
o AII manager makes decision but asks
specific information from subordinates
Decision Making Style when:
o The leader has sufficient info
o Quality of decision is not essential
o Employees do not agree w/ each other
o Employees do not agree w/ goals of the
organization

Consultative consult everyone, decide alone

o CI manager makes decision, but asks
specific information from relevant
subordinates in each group w/o bringing
them together as a group
o CII manager decides with considerate
group input and asks information from
whole group, obtaining their
ideas/suggestions
Decision Making Style when:
o Leader has sufficient information, but
employees demand participation to
implement decision
o Leader has sufficient information, and
employee consultation will help leader
gather more information as well as
develop commitment
o Followers generally agree with goals of
the organization

Democratic Group Decision

o GII group decides with input from leader
and consensus is reached
Decision Making Style when:
o Leader does not have all the info
o Quality is important and employee
commitment is essential
EMERGING APPROACHES TO LEADERSHIP
1. Substitutes, Enhancers, and Neutralizers for
Leadership
2. Self-Leadership & Super Leadership
3. Coaching
4. Transformational & Transactional Leadership
5. Visionary and Charismatic Leadership
Leadership Substitutes

Characteristics of the task, employees or

organization that may reduce the need for
leadership behaviors

Individual, task or organizational characteristics

that tend to make leadership roles unnecessary

Found in the contingency factors of the task,

organization and employees
1.

Highly experienced workers

2. Highly cohesive work groups

3. Clear rules
4. Strong professional orientation
5. Intrinsically satisfying tasks
6. Employees high need for independence
1, 2 & 3 help decrease the need for a leaders
traditional task orientation
4, 5 & 6 may diminish the need for a leaders
consideration-oriented behavior
Neutralizers attributes of subordinates, tasks &
organization that interfere with or diminish a leaders
attempts to influence employees

Physical distance between leader & employees

Indifference towards rewards

Intrinsically satisfying tasks

Inflexible work rules

Rigid reward systems

Cohesive work groups

Employees w/ high ability, experience or

knowledge

Practice of bypassing the managers

Enhancers for Leadership elements that amplify
a leaders impact on the employees; clarify and aid a
leaders existing characteristics & abilities

Superordinate goals

Increased group status

Increased leaders status & reward power

Leader as the central source of information

supply

Increased subordinates view of leaders

expertise, influence, & image

Use of crises to demonstrate leaders

capabilities
Self-Leadership & Superleadership
Self-Leadership leading ones self to perform
naturally-motivating tasks, as well as managing ones
self to do work that is required but not naturally
rewarding

Self-directed and self-motivated

Works well w/ those whom Hersey & Blanchard

identify at the fourth level of development

Requires employees to apply the behavioral

skills of self-observation, self-set goals,
management of cues, self-reward, rehearsal of
activities prior to performance & self-criticism
Superleaders people who actively work to unleash
the potential of their subordinates

Needed to develop self-leaders; they are adept

at helping subordinates become self-leaders

They have a set of positive attitudes about

work, which they transmit to everyone working
for them

Challenge to managers: must give up some of

the direct control
Strengths

Views employees as thinking individuals

Minimal motivation problem

More flexible & reacts faster to change

Limitations

Universal Applicability

Not appropriate for assembly-line workers

Coaching

Means that the leader prepares, guides &

directs the team but does not play the game

See themselves as cheerleaders & facilitators,

while also recognizing the occasional need to
be tough & demanding

Role is to select the right players to teach &

develop subordinates to be available for
problem-oriented consultation, to review
resource needs, & to listen to inputs from
employees

Cajole, prod, enable, inspire, exhibit warmth &

support & hold informal conversations (peptalks)
5 Characteristic of Managerial Coaches:
1. Conviction-driven
2. Overlearning
3. Audible-ready (Listening)
4. Consistency
5. Honesty
Transformational vs Transactional Leadership
Transformational Leaders provide individualized
consideration & intellectual stimulation & who
possess charisma

pays attention to the concerns &

developmental needs of individual followers

change followers awareness of issues by

helping them to look at old problems in new
ways

able to excite, arouse & inspire followers to put

out extra effort to achieve group goals

Charisma provides vision & sense of mission,

instills pride, gains respect & trust

Inspiration communicates high

expectations, uses symbols to focus efforts,
expresses important purposes in simple ways

Intellectual Stimulation promotes

intelligence, rationality & careful problem
solving

Individualized Consideration gives

personal attention, treats each employee
individually, coaches, advises
Transactional Leaders guide or motivate their
followers in the direction of established goals by
clarifying role & task requirements

Contingent Reward contracts exchange of

rewards for effort, promises rewards for good
performance, recognizes accomplishment

Management by Exception (active)

watches and searches for deviations from roles
& standards, takes corrective action

Management by Exception (passive)

intervenes only if standards are not met

Laissez-faire abdicates responsibilities,

avoids making decisions
The 2 leadership concepts shouldnt be viewed as
opposing approaches to getting things done.

Transformational leadership is built on top of

transactional leadership it provides levels of
follower effort & performance that go beyond what
would occur with a transactional approach alone
Visionary Leadership ability to create &
articulate a realistic, credible, attractive vision of the
future of an organization or organizational unit that
grows out of & improves upon the present
Skills w/c Visionary Leaders exhibit:
1. ability to explain the vision to others
2. to be able to express the vision not just
verbally but through the leaders behavior;
behaves in ways that continually conveys &
reinforces the vision
3. being able to extend the vision to different
leadership contexts; ability to sequence
activities so the vision can be applied in a
variety of situations
Charismatic Leadership - says that followers make
attributions of heroic or extraordinary leadership
abilities when they observe certain behaviors
Charismatic Leaders:

have a vision

are willing to take risks to achieve that vision

sensitive to both environmental constraints &

follower needs

exhibit behaviors that are out of the ordinary

that differentiate charismatic leaders from noncharismatic ones
Key Characteristics of Charismatic Leaders:
1. Vision and articulation
2. Personal risk
3. Environmental sensitivity
4. Sensitivity to follower needs
5. Unconventional behavior
How
1.
2.
3.

to develop charisma:
Maintaining an optimistic view
Creating a bond that inspires others to follow
Brings out the potential in followers by tapping
into their emotions (empathy)

INTERPERSONAL BEHAVIOR
Conflict any situation in w/c two or more parties
feel themselves in opposition

Levels of Conflict
o Intrapersonal Conflict (you w/ yourself)
(i.e., matrix -> dual bosses)
o Interpersonal Conflict (two individuals)
o Intergroup Conflict (two groups)

Sources of Conflict
o Organizational Change
o Personality Clashes
o Different set of values
o Threats to Status
o Contrasting perceptions
o Lack of Trust
Advantages of Conflict (Constructive)
o People are stimulated to search for
improved approaches that lead to better
results; energizes them to be more

creative & to experiment with new ideas

(search for a win-win solution)
o Once-hidden problems are brought to the
surface where they may be
confronted/solved
Conflict is constructive when:
o Improves the quality of decisions
o Stimulates creativity & innovation
o Encourages interest & curiosity among
group members
o Provides the medium through w/c
problems can be aired and tensions
released (leads to minimization of
problem)
o Fosters an environment of self-evaluation
& change
Disadvantages of Conflict
o At interpersonal level, cooperation and
teamwork may deteriorate
o Distrust may grow
o Motivation level of some employees will
be reduced
Conflict can:
o Reduce group effectiveness
o Retarding of communication
o Reduction in group cohesiveness
o Subordination of group goals to the
primacy of infighting to a halt and
potentially threaten the groups survival

Resolution Strategies

Avoiding physical or mental withdrawal from

the conflict; results in lose-lose situation

Smoothing accommodating the other

partys interest (sipsip); lose-win situation

Forcing using power tactics to win; relies on

aggressiveness & dominance; win-lose
situation

Compromising searching for middle ground;

being able to give up something in exchange
for gaining something else (second best
solution)

Confronting facing the conflict directly &

working it through a mutually satisfactory
resolution; win-win situation
Conflict Resolution Technique

Problem Solving

Superordinate Goals

Expansion of Resources

Avoidance

Smoothing

Compromise

Authoritative Command

Altering the human variable

Altering the structural variables

Four
1.
2.
3.
4.

basic third party roles:

Mediator
Arbitrator
Conciliator
Consultant

Conflict Stimulation Techniques

Communication

Bringing in outsiders
Restructuring the organization
Appointing a devils advocate

Transactional Analysis (TA) study of social

transactions between people; developed in the 1950s
by Eric Berne used in psychotherapy

Objective of TA provide better understanding

on how people relate to one another so they
can develop improved communication &
healthy human relationships

Model of psychotherapy based on the idea that

emotionally intense memories from childhood
are ever-present in adults

Their influence can be understood by carefully

analyzing the verbal and non-verbal
interchanges (transactions) between people,
Hence Bernes name for his model.
Transaction consists of a stimulus and a response

Quality and content of interpersonal

communication or transaction is determined by
the three states present in every personality:
Parent (P), Adult (A), and Child (C)

According to Berne, two people interact w/

each other from one of three psychological
positions known as ego states (PARENT,
ADULT, & CHILD), & a person can operate
(communicate or act) from any of the three:
o Parent Ego State (P) may be protective,
controlling, nurturing, critical, or
instructive
o Adult Ego State (A) appear as rational,
calculating, factual, & unemotional
behavior; tries to upgrade decision by
seeking facts, processing data, holding
factual discussion, etc.
o Child Ego State (C) reflects emotions
developed in response to childhood
experiences; may be spontaneous,
dependent, creative or rebellious

Parent Ego State taught concept of life

o Represented by parents, teachers or
anyone whose admonitions, judgements,
nos and donts and commands are
accepted w/o question; recordings are
accepted w/o question

Child Ego State felt concept of life

o Stops at age 5 when the child goes to
school and starts collecting his first
independent social experience

Adult Ego State thought concept of life

o Said to begin at age 10 months, when the
child begins to become mobile, begins to
do things by himself
Types of Transactions

Complementary Transaction: Supervisor (P)

<--> Employee (C)

Complementary or Parallel Transaction:

Supervisor (P) <--> Employee(P) and Employee
(A) <--> Supervisor (C)

Crossed Transaction: Employee (C) -->

Supervisor (P) and Supervisor (A) --> Employee

(A); Supervisor (P) --> Employee (C) and

Employee (P) --> Supervisor (C)

Life Positions each person tends to exhibit one of

four life positions; early in childhood, a person
develops a dominant way of relating to people; that
philosophy tends to remain with the person for a
lifetime unless major experiences occur to change it
(Life Changing Events)

Im NOT OK Youre OK universal position

of early childhood; there is hope in this position
because there is source of stroking

Im NOT OK Youre NOT OK rejects

stroking; can lead to withdrawal or regressive
behavior

Im OK Youre NOT OK a typical position

occupied by a battered child, someone who
suffers from stroking deprivation; many
criminal psychopaths are believed to occupy
this

Im OK Youre OK this is made easier

when the person has an OK-ness feeling early
in life, because he can prove to himself his own
worth and that of others; a person in this
position asks why not instead of why; a
risk-taker
Transactional Analysis & Conflict Resolution
Conflict
Life
Probable
Resolution
Positions
Behavior
Strategy
N-OK N-OK
Avoidance
N-assertive
N-OK OK
Smoothing
N-assertive
OK N-OK
Forcing
Aggressive
OK OK
Confronting
Assertive
Assertiveness is the process of expressing
feelings, asking for legitimate changes, & giving &
receiving honest feedback
Stroking defined as any act of recognition for
another (pat on the back); applies to all types of
recognition (such as physical, verbal, & non-verbal
contact between people)

Positive

Negative

Mixed & Conditional or Unconditional

According to Dr. Harris, despite what happened in our
past, we have the freedom to change at will, we can
gain control of our future, we can live the Im OKYoure OK position Although we cannot erase the
NOT OK recordings, we can consciously turn them
of.
Only the emancipated Adult can reach a rational
Judgement of an Im OK-Youre OK position.
POWER AND POLITICS
Power the capacity of a person, team, or
organization to influence others

Most basic prerequisite of power one party

believes he or she is dependent on the other
for something of value

Power exists when others believe that you

control resources that they want
Can have power over others by controlling a
desired (thing) job assignment, useful
information, important resources, or even the
privilege of being associated with you
Although power requires dependence, it is
actually more accurate to say, the parties are
interdependent

Power (N & D) ability to influence other people &

events; it is the leaders stock-in-trade; the way that
leaders extend their influence to others

is different from authority because authority is

delegated by higher management; power is
earned and gained by leaders on the basis of
their personalities, activities, & situations in w/c
they operate
o Formal Leaders Official Power
o Informal Leaders Charismatic Power
5 Types of Power
1. Personal/Referent Power including
charismatic power
2. Legitimate Power position power & official
power
3. Expert Power authority of knowledge
4. Reward Power capacity to control &
administer items that are valued by another
5. Coercive Power capacity to punish another
Information Power
1. Control over information flow
2. Coping with uncertainty
Organizational Politics found in any organization

refers to intentional behaviors that are

designed to enhance or protect a persons
influence & self-interest

used professionally; may help attain a wellearned promotion, personal viability, etc

attempts to influence others using

discretionary behaviors to promote personal
objectives; it is the exercise of power to get
ones own way, including the acquisition of
more power, often at the expense of others
Tactics Used:

Networks

Powerplays

Power & Status Symbols (joining clubs)

Social Exchange

Alliances

Identification w/ Higher Authority (dropping of

names)

Control of Information

Selective Service
Types of Political Activity in Organizations
1. Attacking or Blaming Others most direct &
nastiest form of organizational politics; includes
giving rivals a bad image in the eyes of the
decision makers

2.
3.

4.

5.

6.
7.

Selective Distributing Information limits

the potential performance of rivals
Controlling Information Channels through
legitimate power, some people can control the
interactions among employees as well as the
topics of discussion
Forming Coalitions an informal group that
attempts to influence people outside the group
by pooling the resources and power of its
members
Cultivating Networks cultivating social
relationships with others to accomplish ones
goal
Creating Obligations norm of reciprocity
(political tactic) (utang na loob)
Managing Impressions the practice of
actively shaping our public images
a. Forms of impression management
blaming others, filtering information &
increasing the visibility of ones power
base.

Conditions for Organization Politics

1. Scarce resources
2. When resource allocation decisions are based
on ambiguous, complex, or a complete lack of
rules
3. When it is tolerated and transparently
supported by the organization
Contingencies of Power determine the extent to
which people can leverage their power bases

Substitutability the extent to which those

dependent on a resource have alternative
sources of supply of the resource or can use
other resources that would provide a
reasonable substitute
o Ways by which people and work units can
increase their power through nonsubstitutability:

Controlling tasks

Controlling knowledge

Controlling labor

Differentiation

Centrality the degree & nature of

interdependence between the powerholder &
others
o 2 dimensions of centrality:

How many people are affected by

your actions?

How quickly people are affected by

your actions?

Discretion the freedom to make decisions

without referring to a specific rule or
receiving permission from someone else

Visibility employees gain power by making

their sources of power known to others
o Visibility increases:

as the no. of people you interact

with increases

with more face-to-face contact

when employees introduce

themselves to senior management
& by being assigned to important
task forces

mentoring

Organization Politics: Good or Bad?

1. Utilitarian Rule
2. Individual Rights Rule
3. Distributive Justice Rule
Personal Characteristics affect a persons
motivation to engage in organizational politics

Michiavellian values the belief that deceit

is a natural and acceptable way to influence
others
Controlling Political Behavior
Strategies that should keep dysfunctional politics in
check:
1. Ensure that there is sufficient supply of critical
resources
2. Where resources are necessarily scarce,
introduce clear rules & regulations to specify
the use of these resources
3. Establish a free flow of information so that the
organization is less dependent on a few people
at the center of the communication wheel
4. Use effective organizational management
practices particularly communication &
involvement to minimize uncertainty during
the change process
5. Restructure team & organizational norms to
reject political tactics that appear to interfere
with the organizations goals
INFORMAL & FORMAL GROUPS
Group Dynamics the social process by which
people interact face-to-face in small groups; forces
operating within a group

Types of Groups

Formal Groups established by the

organization & have a public identity & goal to
achieve; emphasis is in terms of authority &
responsibility

Informal Groups emerge on the basis of

common interests, proximity & friendships;
emphasis is on people & their relationships
2 Types of Formal Groups
1. Temporary Group they are created to
accomplish a short-term task & then disband
i.e., committee or task force
2. Team is a more natural & enduring work
group; this is formed when people perform
tasks together as part of their job assignments
Informal Organization network of personal &
social relations not established or required by the
formal organization but arising spontaneously as
people associate with one another

Informal organization emerges within the

formal structure

Diferences between Informal and Formal

Organizations
Basis of
Informal
Formal
Comparison Organizatio
Organizatio
n
ns
General
Unofficial
Official
nature
Authority &
Major
Power &
Responsibilit
concepts
Politics
y
Primary focus
Person
Position
Source of
Given by
Delegated by
leader power
group
management
Guidelines
Norms
Rules
for behavior
Sources of
Reward &
Sanctions
control
penalties
Informal Leader the employee with the largest
amount of status in the informal organization
The manager & the informal leader usually are
two different persons in work groups.
Identifying Informal Leaders:

Socialize new members

May be called upon the group to perform the

more complex tasks

Usually enjoy vacation time first

Spared from messy chore

Potential Benefits & Problems Associated with
Informal Association
Benefits:

Makes a more effective total system

Lightens workload on management

Helps get the work done

Tends to encourage cooperation

Fills in gap in a managers abilities

Gives satisfaction & stability to work groups

Improves communication

Provides a safety valve for employee emotions

Encourages managers to plan & act more

carefully
Problems:

Develops undesirable rumor

Encourages negative attitudes

Resists change

Leads to interpersonal & intergroup conflicts

Rejects & harasses some employees

Weakens motivation & satisfaction

Operates outside of managements control

Supports conformity

Develops role conflicts

Network Charts focuses on either interpersonal
feeling expressed (e.g. attraction, repulsion, or
indifference) among individuals or actual behaviors
exhibited.
Formal Groups

Committee specific type of group meeting in

which members in their group role have been
delegated the authority to handle the problem
at hand.

Size a group of 5 people seems to be usually

preferred
Composition committees objective,
members interest/level & time available to
serve & the past history of working
relationships among members
Agendas
o Surface agenda official task of the
group
o Hidden agenda involves members
private emotions & motives, which have
brought with them but kept hidden

Leadership Roles task leader or social leader

Task Roles:

Define a problem or goal for the group

Request facts, ideas, or opinions from members

Provide facts, ideas or opinions

Clarify a confused situation; give examples;

provide structure

Summarize discussion

Determine whether agreement has be reached

Social Roles:

Support contributions of others; encourage by

recognition

Sense mood of the group & help members

become aware of it

Reduce tension & reconcile disagreements

Modify your position; admit an error

Facilitate participation of members

Evaluate groups effectiveness

Structured Approaches

Brainstorming freewheeling

Nominal Group Technique develop

solutions independently & group members
individually designate preferences for best
alternative by secret ballot

Delphi Decision Making a panel of relevant

people is chosen to address an issue

Dialectic Decision Methods 2 proposals

presented; assumptions under each identified;
each proposals pros & cons presented; choice
could be A, B, compromise between A & B, or
new alternative; disadvantage: tendency to
focus on the better debaters
Weaknesses of Groups:
1. Slowness & Expensiveness
2. Groupthink the tendency of a tightly knit
group to bring individual thinking in line with
the groups thinking
3. Polarization may cause people to separate
into two groups
4. Escalating Commitment advocating a
course of action despite rational evidence that
it will result in failure; due to selective
perception, fear of losing face; & strong
admiration for risk-takers
5. Divided Responsibility
Guidelines for Ensuring Group Meetings
1. Distribute agenda/ background material in
advance

2. Clarify the objective

3. Compose the group appropriately
4. Encourage expression of minority viewpoints
5. Separate idea generation from evaluation
6. Make assumptions explicit
7. Legitimize questioning attitudes
8. Control irrelevant discussions
9. Test support for a decision
10. Evaluate groups effectiveness
11. End on a positive note & assign responsibilities
Informal leaders do not always make the best
formal mangers:

Some successful informal leaders become

arrogant bosses once they received formal
authority

Some fear official responsibility

Afraid to make a mistake

Official managerial authority is broader & more

complex
TEAMS AND TEAM BUILDING
Differences between:
A Boss
A Leader
Drives employees
Coaches employees
Depends on authority Depends on goodwill
Generates
Inspires fear
enthusiasm
Says I
Says We
Places blame for the
Fixes the breakdown
breakdown
Knows how its done
Shows how its done
Uses people
Develops people
Takes credit
Gives credit
Commands
Asks
Says Go
Says Lets go
Mechanistic Organizations

Fit the traditional hierarchical way of organizing

People are specialized into many activities that

are directed by layers of supervision

Communication is formal & relays instructions

& decisions

Each higher level has more power & influence

until the top is reached where central direction
of the whole organization takes place

Work is carefully scheduled, tasks are certain,

roles are defined strictly and formal
communication flows along lines of hierarchy
Organic Organizations

More flexible & open

Tasks & roles are less rigidly defined allowing

people to adjust to situational requirements

Communication is multi-directional

Authority & influence flow more directly from

the person who has the ability to handle the
problem at hand

Decision-making is decentralized

Organization more open to its environment

(dynamic) where tasks are non-routine;
employees prefer variety & change
Initiation of Action

Initiation from a fast worker to a slow one

Initiation from an inexperienced worker to one

w/ more experience
Initiation from a low-seniority worker to one w/
high seniority
Initiation from unskilled worker to a skilled one
Initiation from a young person to an older one
Initiation from a worker with low authority to
one w/ higher status
Initiation that puts pressure on another worker
Initiation that affects sensitive areas of a
workers job

Matrix Organization

An overlay of one type of organization on

another so that there are two chains of
command directing individual employees

Combines 2 forms of departmentalization:

functional & product

Matrix breaks the unity-of-command concept

Used in: advertising agencies, aerospace firms,

R&D Labs, construction companies, hospitals,
government agencies, universities, mgt.
consulting firms, & entertainment companies
Strength of the matrix:
1. Lies in its ability to facilitate coordination when
the organization has a multiplicity of complex
and interdependent activities (As an
organization gets larger, its information
processing capacity can become overloaded.)
2. Facilitates the efficient allocation of specialists
when individuals w/ highly specialized skills
are lodged in one functional department or
product group, their talents are monopolized &
underutilized
Major disadvantages of the matrix:
1. Lies in the confusion it creates
2. Its propensity of foster power struggles
3. Stress it places on individuals reporting to
more than one boss introduces role conflict, &
unclear expectations introduce role ambiguity
Efects of Matrix Organization

Requires multiple roles for people & sometimes

they get frustrated in these ambiguous roles

Insecurities may arise over what will happen to

them when the project is completed & the
team is dissolved

Authority of functional (line) manager who

loses some staff temporarily may be
diminished; problems of maintaining
coordination may arise
Contingency Factors: Matrix organization is
beneficial:

Existence of special projects (major ones)

Need for diverse occupational skills,

particularly high-level ones

Conditions of change during final operation

Complex issues of coordination, problemsolving, & scheduling

High needs for authority of knowledge &

expertise

Capacity of employees to understand

teamwork & work within teams
Diference between Teams & Groups

Work Group a group that interacts primarily to

share information & to make decisions to help each
group member within his or her area of responsibility
Work Team a group that generates positive
synergy through coordinated effort. Their individual
efforts result in a level of performance that is greater
than the sum of those individual inputs (1+1=3)
Work Groups
Work Teams
Share
Collective
GOAL
information
performance
Neutral
SYNERGY
Positive
(sometimes)
ACCOUNTABILI
Individual &
Individual
TY
mutual
Random &
Complementar
SKILLS
Varied
y
The Team Structure (new design option that can
better help firms complete effectively)

When management uses the team as its

central coordination device

It breaks down departmental barriers &

decentralizes decision-making to the level of
the work team

Also require employees to be generalists as

well as specialists
Teamwork where their work is interdependent,
they act as a task team and seek to develop a
cooperative state
Task Team is a cooperative small group in regular
contact that is engaged in coordinated action
Teamwork is exhibited when:

Members of a task team know their objective

Contribute responsibly & enthusiastically to the

task

Support one another

Trend toward more contingency organizational
design --> recognizes that different organizational
structures & processes are required for effectiveness
in varying situations.
Life Cycle of a Team
FORMING

appropriate directions for the group; external

pressures interfere with the group & tensions rise
between individuals as they assert themselves
NORMING the group begins moving together in a
cooperative fashion, and a tentative balance among
competing forces is struck. Group norms emerge to
guide individual behavior, & cooperative feelings are
increasingly evident
PERFORMING the group matures & learns to
handle complex challenges. Functional roles are
performed & fluidly exchanged as needed, & tasks
are efficiently accomplished
ADJOURNING even the most successful groups,
committees, and project teams disband sooner or
later (called adjournment); requires dissolving
intense social relations & returning to permanent
assignments
Ingredients of Efective Teams:
1. Supportive Environment
2. Skills & Role Clarity
3. Superordinate Goals
4. Team Rewards
Team Building encourages team members to
examine how to work together; identify their
weaknesses & develop more effective ways of
cooperating; goal is to make the team more effective
Skills Useful in Team Building

Consultation skills (diagnosing, contacting,

designing change)

Interpersonal skills (trust-building, coaching, &

listening)

Research skills (planning & conducting a study/

evaluating results)

Presentation skills (public speaking & report

preparation)
Typical Stages in Team Building
Identification of a Problem
Collection of Relevant Data
Data Feedback & Confrontation
Problem-solving Experience

STORMING
On-the-job Application & Follow-up
NORMING

PERFORMING

ADJOURNING

FORMING members share personal information,

start to get to know & accept one another & begin
turning their attention toward the groups task; an
aura of courtesy prevails & interactions are cautious
STORMING members compete for status, jockey
for positions of relative control, & argue about

2 most important skills for both team leaders

and team members:
1. Process Consultation is a set of activities
that help others focus on what is currently
happening around them; process consultant
holds up a mirror to team members & helps
them see themselves in action

Facilitating Behaviors:
o Encouraging open communication
o Observing team meetings
o Probing & Questioning
o Confronting individuals
o Stimulating problem solving
o Attending to nonverbal cues

o Encourage learning
2. Feedback encourages team members to
understand how they are seen by others within
their team & to take self-correcting action;
useful data on which to base decisions
System Design for Better Teamwork
Teamwork can be engineered out by means of
layouts & job assignments that separate people
Communication Patterns can be affected by
office layout

can provide enclosed work cubicles for each

employee

create a more open, landscaped work area with

lower or no partitions between work spaces
Many workers feel a need to establish their
own employee territories spaces they can call
their own
Alienation product of poor design or sociotechnical
systems a feeling of powerlessness, lack of
meaning, loneliness, disorientation, lack of
attachment to the job, work group or organization

workers no longer see where they fit and the

value of their efforts
Reinvigorating Mature Teams

Prepare members to deal with the problems of

maturity

Offer refresher training

Offer advanced training

Encourage teams to treat their development as

a constant learning experience
Team-Building Activities
Typical team building activity includes 2 or more of
these:
1. Role definition examines role expectations
among team members & clarifies their future
role obligations to each other

participants describe perceptions of their

own role expectations they have of their
team members

after discussing these perceptions, team

members revise their roles & present
them for final acceptance

process determines whether individuals

have the same role expectations that
others assume of them
2. Interpersonal process activities try to
build trust & open communications among
team members by resolving hidden agendas &
misperceptions

Wilderness adventures, paintball wars,

obstacle course challenges

Dialogue based on the idea that a

team develops a wholeness or sense of
unity when its members continually
engage in conversations to understand
one another
3. Goal setting involves clarifying the teams
performance, goals, increasing the teams
motivations to accomplish these goals, &

4.

establishing a mechanism for systematic

feedback. Ex. Conventions
Problem Solving examines the teams taskrelated decision-making process and identifies
ways to make it more effective. Ex. Simulation
that require team decisions in
hypothetical decisions

ORGANIZATIONAL CHANGE & ORGANIZATIONAL

DEVELOPMENT
Work Change is any alteration that occurs in the
work environment
Reasons for resistance to change
1. Nature of change itself may violate morale
belief system, may believe decision is
technically incorrect or they may simply be
reluctant to change the comfort of certainty &
familiarity
2. Method by which change is introduced
people may resent having been ill-informed, or
they may reject an insensitive & authoritarian
approach that did not involve them in the
change process
3. Inequity - experienced when people perceive
themselves being changed while someone else
appears to gain benefits to change
Types of Resistance to Change among
Employees
1. Logical, rational objections
a. Time required to adjust
b. Extra effort to relearn
c. Possibility to less desirable conditions
(skill downgrading)
d. Economic costs of change
e. Questions technical feasibility of change
2. Psychological, emotional attitudes
a. Fear of the unknown
b. Low tolerance for change
c. Dislike of management or other change
agent
d. Lack of trust in others
e. Need for security; desire for status quo
3. Sociological factors; group interests it is
seen as a product of a challenge to group
interests, norms, & values
a. Political coalitions
b. Opposing group values
c. Parochial, narrow outlook
d. Vested interests
e. Desire to retain existing friendships
Possible Benefits of Resistance

Encourage management to reexamine its

change proposals

Help identify special problem areas where a

change is likely to cause difficulties

Gives management information about the

intensity of employee emotions on an issue,
provides emotional release for pent-up
employee feelings & may encourage
employees to think & talk about a change so
they could understand it better

Double-loop learning the way a change is

handled should not only reflect current information
gathered (first loop) but also prepare the participants
to manage future changes even more effectively
(second loop) teaching individuals & teams to solve
problems on their own
Single-loop learning employees simply solve
current problems & blindly adapt to changes w/c
have been imposed on them
Three Stages in Change

Unfreezing old ideas & practices need to be

cast aside so the new ones can be learned
o Decreasing strength of previously held
attitudes, values, & behaviors
o Failure to cast aside old ideas is what
often leads to resistance to change

Changing is the step in which the new ideas

& practices are learned; this process involves
helping an employee think reason and perform
in new ways
o it can be a time of confusion,
disorientation, overload & despair
o stage when intervention strategies
are implemented

Refreezing what has been learned is

integrated into actual practice
Building Support for Change

Use of Group Forces

Providing a rationale for change

Participation

Shared rewards

Employee security

Communication & education

Stimulating employee readiness

Working with the total system

Transformational leader instrumental in the
change process; they articulate a vision & sell it
vigorously
Organizational Development the systematic
application of behavioral science knowledge at
various levels (group, intergroup, & total
organization) to bring about planned change

Concerned with the deliberate, reasoned,

introduction, establishment, reinforcement &
spread of change for the purpose of improving
an organizations effectiveness & health

Objectives include a higher quality of work life,

productivity, adaptability, and effectiveness

Planned change

Organization-wide

Managed from the top

Increase Organization Effectiveness & Health

Through planned intervention in the

organizations processes using behavioralscience knowledge
OD Technologies

Laboratory training/ sensitivity training

(T-groups) the trainer, as a rule, refuses to
guide the group which will lead to 1 or more

members of the group assume leadership &

give direction.
o Group success depends almost entirely
on the feedback process
Survey Feedback a joint effort between the
client organization & an OD consultant in
developing a questionnaire, using it to collect
data about the organization, analyzing the
data, interpreting them, & then using the
interpretation as the basis for change.
Grid OD core is Blake & Moutons Managerial
Grid
o 6 phases of GRID OD
1. GRID seminar
2. Teamwork development
3. Intergroup development
4. Developing an ideal strategic
corporate model
5. Implementing the ideal strategic
model
6. Systematic critique
Process Consultation holds that
improvements in the human processes provide
key to organizational development
o focuses on communication, member roles
& functions in groups, group problem
solving & decision making, group norms,
leadership & authority, & intergroup
cooperation & competition
o set of activities on the part of the
consultant w/c help the client to perceive,
understand, & act upon process events
w/c occur in the clients environment
o often observe an organizations top-level
meetings as a starting point for the
intervention
Confrontation meeting (Bull sessions)
lasts a day; very quick way to mobilize an
organization to set action plans
6 Steps:
o Climate setting
o Information collecting
o Info sharing
o Priority setting & group action planning
o Intermediate follow-up by top
management
o Progress review
Job Design
o horizontal job loading (job
enlargement) more operations are
added to a job
o vertical job loading (job enrichment)
adding more responsibility, planning &
control to a job
6 steps:
1. Diagnosis job diagnostic survey
2. Form natural work units (find informal
groups)
3. Combining tasks
4. Establishing client relationships
5. Vertical loading
6. Opening feedback channels

Benefits of OD

Change throughout organization

Greater motivation

Increased productivity
Better quality of work
Higher job satisfaction
Improved teamwork
Better resolution of conflict
Commitment to objectives

Limitations of OD

Major time requirements

Substantial expense

Delayed payoff period

Possible failure

Possible invasion of privacy

Possible psychological harm

Potential conformity

Emphasis on group processes rather than

performance

Possible conceptual ambiguity

Cultural incompatibility
ORGANIZATIONAL CULTURE
Organizational Culture set of assumptions,
beliefs, values & norms that are shared by an
organizations members

includes totality of the history, patterns of

communication, systems & procedures,
statements of philosophy, stories & myth, dress
code, slogans of an organization

becomes known to both employees and the

public
Organizational Culture (Robbins) system of
shared meaning (a set of key characteristics that the
org values) held by members that distinguishes the
organization from others
Culture is the system of symbols and meanings
people use to organize their ideas, interpret their
experiences, make decisions, and ultimately guide
their actions (decision-making)
3 Fundamental levels at which culture
manifests itself:

Observable artifacts physical layout, dress

code, the way people relate to each other,
company records, statement of philosophy, &
reports

Values, norms, philosophy, & ideology

basic underlying assumptions about the
organizations relationship to its environment,
the nature of reality & truth, the nature of
human activity and relationships
7 Primary Characteristics that capture essence
of an organizations culture:

Innovation & risk taking

Attention to detail

Outcome orientation

People orientation

Team orientation

Aggressiveness

Stability

Culture could be: fast paced or easygoing vs

warm & friendly or cold & sterile
4 Diferent Corporate Cultural Types

Macho cultures joint venture, advertising &

television

Work hard-Play hard cultures real estate,

automotive distribution, & door-to-door sales

Bet-your-company culture oil exploration,

aircraft manufacturing, & computer design

Process cultures insurance, banking, &

utilities

Service culture health organization, social

welfare, enterprises, schools, memorial parks,
beauty parlors
Culture provides both DIRECT & INDIRECT cues
telling workers how to succeed:

Direct orientation training, policy

statements, advice from supervisors & peers

Indirect inferences made from promotions,

apparent patterns of acceptable dress
Important Things about Culture:

No best culture for all firms

Depends on the orgs goals, industry, nature of

competition and other factors in the
environment

Easily recognized when elements are

integrated & consistent w/ each other

Most members must accept or embrace the

assumptions & values of the culture

Evolve directly from top management

May exist across an entire organization; or it

may be made up of various sub-cultures

Cultures have varying strengths

Measuring Organizational Culture

Examination of stories, symbols, rituals, &

ceremonies

Interviews & open-ended questionnaires to

asses employee values & beliefs

Survey employees directly & seek their

perception
4 Distinct Culture Types
1. Networked culture (high sociability-low
solidarity) orgs view members as family &
friends; people willingly give assistance &
openly share info
Disadvantage: tolerance for poor
performance & creation of political cliques
2. Mercenary culture (low sociability-high
solidarity) orgs are fiercely goal-focused;
people are intense & determined to meet
goals; not only about winning but destroying
the enemy
Downside: inhumane treatment of people who
are perceived as low performers
3. Fragmented culture (low sociability-low
solidarity) orgs are made up of individuals;
commitment is first & foremost to individual
members; little or no identification with the

4.

organization; employees judged solely on their

productivity & quality of work
Disadvantage: excessive critiquing of others
& absence of collegiality
Communal culture (high sociability-high
solidarity) values both friendship &
performance; feeling of belonging but still
ruthless focus on goal achievement; leaders
tend to be inspirational, charismatic, &
visionary
Disadvantage: culture often consumes ones
total life

Culture as Liability

Barrier to change

Barrier to diversity

Barriers to acquisitions & mergers

Importance of Organizational Culture:

Gives an organizational identity to employees

Important source of stability & continuity to the

org by providing an important context for
events that would otherwise seem confusing

Helps newer employees interpret what goes on

inside the org

Help stimulate employee enthusiasm for their

task role models to emulate
Importance of reading an Organizations
Culture:
1. Culture is compatible with your values
2. Business transactions with numerous
organizations
Can organizational culture be modified?
If one can influence either the significant events in an
org (as founders do in the early stages of the orgs
development) or influence the way people interpret
or experience these events (as great leaders in times
of crisis) or both
OB ACROSS CULTURES

A global economy is now a reality

Many orgs now operate in more than one

country, & these multinational operations add
powerful new dimensions to org behavior

International expansion is a step into different

social, political, & economic environments
Multiculturalism occurs when employees in two
or more cultures interact with each other on a regular
basis
Parochialism see the situation around them from
their own perspective; fail to recognize key
differences between their own & others cultures
Ethnocentrism when people are predisposed to
believe that their homeland conditions are the best
(may lead to Parochialism)
Cultural Distance amount of difference between
any two social systems; may range from substantial
to minimal
Cultural Shock a feeling of confusion, insecurity &
anxiety caused by a new environment

4 phases: excitement/stimulation ->

disillusionment -> insecurity & disorientation
-> adaptation
Cultural Shock may result from encountering:

Different management philosophies

Unfamiliar language

New foods, styles of dress, driving patterns,

etc.

Unfamiliar currency system

Reduced availability of goods (zoning)

Different attitudes toward work & productivity

Separation from friends & work colleagues

Reverse Cultural Shock may result from
encountering:

Loss of decision-making authority

Loss of responsibility

Changes in ones level of status in the

organization

Technological & organizational changes

High context (non-verbal) use situational cues to
develop a complete portrait of a visitor; emphasize
personal relations, place high value on trust, focus on
nonverbal cues & accent the need to attend to social
needs before business matters
Low context (verbal) interpret cues more
literally; rely on written rules & legal documents,
conduct business first, & value expertise &
performance
National Value Orientation/ Hofstedes Cultural
Dimension

Individualism/Collectivism
o Individualism accent individual rights
& freedom; very loosely knit social
networks; emphasis on persons own
career & personal rewards
o Collectivism accent the group &
values harmony among members; face
saving (maintaining ones self-image in
front of others) is highly important

Power Distance belief that there are strong

and legitimate decision-making rights
separating managers & employees; custom is
frequently observed in Asian & South American
countries

Uncertainty Avoidance employees in some

cultures value clarity & feel very comfortable
receiving specific directions from their
supervisors; these employees have a high level
of uncertainty avoidance & prefer to avoid
ambiguity at work

Masculinity/ Femininity
o Masculine societies define gender
roles in more traditional & stereotypical
ways; value assertive behavior &
acquisition of wealth; ex. Japan, US
o Feminine societies broader
viewpoints on the great variety of roles
that males & females can play in the
workplace & at home; treasure
relationships among people, caring for
others & a great balance between family
& work life; ex. Scandinavian

Time Orientation
o Long-term orientation accent values
such as the necessity of preparing for the
future, value of thrift & savings, & merits
of persistence; ex. HK,CH,JP
o Short-term orientation value the
past & accent the present, with a rich
respect for tradition & the need to fulfill

Comparison between Japan & US cultural

diferences
Japan
US
Individualism/
Collectivistic
Individualistic
Collectivism
Power
High
Low
Distance
Uncertainty
Strong
Weak
Avoidance
Masculinity/
High
Moderate
Femininity
masculinity
masculinity
Time
Long-term
Short-term
Orientation
Theory Z behavioral prescriptions from
management must be adapted to fit the
organizations cultural environment; adapts some
Japanese practices to the American culture
Typical Features of Theory Z Organization

Long-term employment (JP)

Non-specialized careers (US)

Individual responsibility (US)

Concern for the total person (JP)

Less formal control systems (US)

Consensus decision-making (JP)

Slower rates of promotion (JP)

Guidelines for transcultural managers:
1. Learn about a variety of cultures
2. Develop regular collaborative relationships w/
foreign colleagues
3. Participate in cross-cultural & diversity training
4. Interact with previous expatriates to learn from
their experiences
5. Acquire fluency in at least one additional
language
6. Identify a mentor who can guide & advise you
on cross-cultural issues
7. Examine the cultural characteristics of the
country to which you will be assigned

ORGANIZATIONAL STRUCTURE & DESIGN

Nomeclature

Organizing the process of creating an

organizations structure

Organizational structure the formal

framework by which job tasks are divided,
grouped, and coordinated

Organizational design process of

developing or changing an organizations
structure
Six Key Elements of Organizational Structure &
Design

Work Specialization degree to which tasks

in an organization are divided into separate
jobs:
o doing part of an activity rather than the
entire activity
o too much specialization has created
human diseconomies
o important organizing mechanism, though
not a source of ever-increasing
productivity

Departmentalization basis by which jobs

are grouped together
o functional groups jobs by functions
performed
o product groups jobs by product line
o geographical groups jobs on the basis
of territory or geography
o process groups jobs on the basis of
product or customer flow
o customer groups jobs on the basis of
common customers
Large organizations combine most or all
forms of departmentalization.
Trends customer departmentalization is
increasingly being used
o better able to monitor and respond to
customer needs
o cross-functional teams are becoming
popular groups of individuals who are
experts in various specialties; involved in
all aspects of bringing a new product to
market

Chain of Command continuous line of

authority that extends from upper
organizational levels to the lowest levels and
clarifies who reports to whom
o authority the rights inherent in a
managerial position to tell people what to
do and to expect them to do it
o responsibility the obligation to
perform any assigned duties
o unity of command a person should
report to only one manager
These concepts are less relevant today due to
information technology and employee
empowerment
Elements of Organizational Structure

Span of Control refers to the number of

people reporting directly to the next level in the
hierarchy; depends on the presence of other
coordinating mechanisms; self-directed work
teams replace direct supervision with informal
communication & specialized knowledge

Centralization & Decentralization

o Centralization formal decision
authority is held by a small group of
people, typically those at the top of the
organizational hierarchy; may improve
consistency & reduce costs, it doesnt
reduce local flexibility
o Decentralization degree to which
decisions are made by lower-level
employees

Formalization the degree to which jobs

within the organization are standardized

standardization removes the need for

employees to consider alternatives
standard behavior through rules,
procedures, formal training & related
mechanisms
employee allowed minimal discretion in
highly formalized jobs

explicit job descriptions

clearly defined procedures

Organizational Design Decisions

Mechanistic characterized by a narrow span of
control & a high degree of formalization &
centralization

rigidly and tightly controlled structure

tries to minimize the impact of differing human

traits
Organic have a wide span of control, little
formalization & decentralized decision-making

highly adaptive and flexible structure

permits organization to change when the need

arises

employees are highly trained and empowered

to handle diverse job activities

minimal formal rules and little direct

supervision
Mechanistic
Organic
High Specialization
Cross-Hierarchical
Rigid
Free Flow of Information
Departmentalization
Clear Chain of Command
Wide Spans of Control
Narrow Spans of Control
Decentralization
Centralization
Low Formalization
High Formalization
Contingency Factors

Strategy and Structure structure should

facilitate the achievement of goals; should be
closely linked
o innovation need the flexibility and free
flow of information of the organic
structure
o cost minimization seeks efficiency,
stability, and tight controls of
mechanistic structure
o imitation use structural characteristics
of both mechanistic and organic
structures

Size and Structure size affects structure at

a decreasing rate

Technology and Structure

o technology converts inputs into
outputs

unit production production of

items in units or small batches

mass production large-batch

manufacturing

process production continuousprocess production

o mechanistic structure supports routine
technology
o organic structure supports non-routine
technology

Environmental Uncertainty and Structure

one way to reduce environmental uncertainty
is to adjust the organizations structure
o greater stability effective is
mechanistic structure
o greater uncertainty effective is
organic structure
Woodwards Findings On Technology,
Structure, And Efectiveness
Process
Unit Prod
Mass Prod
Prod
Low
Moderate
High
vertical
vertical
vertical
differentiati differentiati differentiati
on
on
on
Low
High
Low
horizontal
horizontal
horizontal
differentiati differentiati differentiati
on
on
on
Low
High
Low
formalizati
formalizati
formalizati
on
on
on
Most
Mechanist
efective
Organic
Organic
ic
structure
Structural Characteristics

Traditional Organizational of Designs:

Simple structure low departmentalization,

wide span of control, authority centralized in a
single person, and little formalization
o commonly used by small businesses
o as orgs increase in size, the structure
tends to become more specialized and
formalized
Advantages:
o fast; flexible; inexpensive to maintain;
clear accountability
Disadvantages:
o not appropriate as organization grows;
reliance on one person is risky

Functional structure organizes employees

around specific knowledge or other resources
Advantages:
o Cost saving due to greater specialization
o Foster professional identity & clarify
career paths
o Direct supervision is easier
Limitations:
o Tend to have dysfunctional conflict &
poorer coordination w/ other work units
o Emphasize subunit goals over
superordinate organizational goals

Divisional structure groups employees

around geographic areas, clients, or outputs
o Each division has relatively limited
autonomy
o Parent corporation acts as an external
overseer to coordinate and control the
divisions provides support services
Advantages:
o Give employees more flexibility & output
focus than functional structures
Disadvantages:
o Increases the amount of duplication &
underutilization of resources

o
o

Reduce cooperation across groups

Costly

Contemporary Organizational Designs

Team-Based Structures entire organization

is made up of work teams
o Employee empowerment is crucial
o Teams responsible for all work activity
and performance
o Complements functional or divisional
structures in large organizations

allows efficiency of a bureaucracy

provides flexibility of teams

Matrix Structure leverages the benefits of

functional & divisional structures; assigns
specialists from different functional
departments to work on projects led by project
managers
o Adds vertical dimension to the traditional
horizontal functional departments
o Creates a dual chain of command:

violates unit of command

project managers have authority in

areas relative to projects goals

functional managers retain

authority over human resource
decisions
Advantages:
o Optimize the use of resources &
expertise, making them ideal for projectbased organizations w/ fluctuating
workloads
o Improve communication efficiency,
project flexibility, & innovation compared
to purely functional designs
Disadvantages:
o Existence of 2 bosses can dilute
accountability
o Tend to generate conflict, organizational
politics, & stress

Project Structure employees work

continuously on projects
o Employees do not return to a functional
department at the conclusion of a project
o All work performed by teams comprised
of employees with appropriate skills and
abilities
o Tends to be very fluid and flexible

No rigid departmentalization or
organization hierarchy

Managers server as facilitators and

mentors

Autonomous Internal Units independent,

decentralized business units
o Each has its own products, clients,
competitors, and profit goals
o Business units are autonomous there is
no centralized control or resource
allocation

Boundaryless Organization design is not

defined by, or limited to, the horizontal,
vertical, or external boundaries imposed by a
predefined structure
o Strategic alliances break down barriers
between the company and its customers
and suppliers

Seeks to eliminate the chain of

command, to have limitless spans of
control, and to replace departments with
empowered teams
o Flattens the hierarchy by removing
vertical boundaries
o Horizontal boundaries removed by
organizing work around processes
instead of functional departments
Learning Organization an organizational
mind-set rather than a specific organizational
design
o Has developed the capacity to
continuously adapt
o All members take an active role in
identifying and resolving work-related
issues
o Practice knowledge management by
continually acquiring and sharing new
knowledge
o Environment is conducive to open
communication
o Empowered teams are important
o Leadership creates a shared vision for the
future
o Organizational culture provides sense of
community
o

WORK DESIGN AND TECHNOLOGY

Job Characteristics Model identifies 5 job
characteristics and their relationship to personal and
work outcomes

Skill variety degree to which the job

requires a variety of different activities so the
worker can use a number of different

Task identity allows employees to perform a

complete piece of work; the degree to which
the job requires completion of a whole and
identifiable piece of work

Task significance refers to the amount of

impact as perceived by the worker, that the
work has on other people; the degree to which
the job has a substantial impact on the lives or
work of other people

Autonomy the degree to which the job

provides substantial freedom, independence,
and discretion to the individual in scheduling
the work and in determining the procedures to
be used in carrying out

Feedback the degree to which carrying out

the work activities required by the job results in
the individual obtaining direct & clear
information about the effectiveness of his or
her performance; refers to the information that
tells workers how well they are performing
Job Scope has 2 dimensions breadth & depth

Job Breadth number of different tasks an

individual is directly responsible for; ranges
from very narrow (one task performed
repetitively) to wide (several tasks); employees
with narrow job breadth are given a wider
variety of duties
o Job Enlargement

Job Rotation another approach to changing

job breadth; involves periodic assignment of an
employee to completely different sets of job
activities
Job Enrichment (Depth) takes a different
approach by adding additional motivators to a
job to make it more rewarding

Accent
on
Needs
(Focus
on
depth)

HighOrder

JOB
ENRICHMENT

JOB
ENRICHMENT &
ENLARGEMENT

Lower
-Order

ROUTINE JOB

JOB
ENLARGEMENT

Few
Many
Number of tasks (Focus on
breadth)
Quality of Work Life (QWL) refers to the
favorableness or unfavorableness of a total job
environment for people: its elements are open
communications, equitable reward systems; concern
for employee job security & satisfying careers; &
participation in decision making

ISSUES BETWEEN ORGANIZATIONS AND

INDIVIDUALS
Model of legitimacy of Organizational Influence
Moderate
On-the-Job
High Legitimacy
Legitimacy
Moderate
Of-the-Job
Low Legitimacy
Legitimacy
Not JobJob-related
related
* For the organization to intervene with a persons
life
Of-the Job-Conduct some activities off the job
may affect the employer, so questions of
organizational influence arise

The basic relationship is as follows: The more

job-related ones conduct is when of the
job, the more support there is for
organizational influence on the employee
Rights of Privacy related to organizational
invasion of a persons private life and unauthorized
release of confidential information about a person in
a way that would cause emotional harm or suffering
Business Activities that may involve employee
rights of privacy:

Lie detectors

Personality tests

Encounter groups

Medical examinations

Treatment of alcoholism

Monitoring of employee lifestyles

Treatment of drug abuse

Surveillance devices

Computer data banks

Confidential records

Genetic screening

Inquiry into personal relationships

Discrimination on the basis of race, color,

national, origin, sex, religion, handicapped status,
and other factors
Sexual Harassment exists when supervisors
make employment or promotion decisions contingent
on sexual favors or when an employees colleagues
engage in any verbal or physical conduct that creates
an offensive working environment
Preventive Discipline action taken to encourage
employees to follow standards and rules so that
infractions do not occur; objective is to encourage
employee self-discipline
Corrective Discipline (disciplinary action)
action that follows infraction of a rule; it seeks to
discourage further infractions so that future acts will
be in compliance with standards; objectives: to
reform the offender, to deter others from similar
actions; & to maintain consistent, effective group
standards
Progressive Discipline System
1. Verbal reprimand by supervisor
2. Written reprimand, with a record in personnel
file
3. 1-to-3 day suspension from work
4. Suspension for 1 week or longer
5. Discharge for cause
Individual Responsibilities to the Organization
the individual also has responsibilities to the
organization
Organizational Citizenship engage in a positive
social acts designed to help others, such as
volunteering their efforts on special projects, sharing
their time and resources, and proactively cooperating
with others. They are also expected to use their
talents and energies fully to help the organization
achieve its goals of efficiency and effectiveness.
Whistle-blowing disclosing alleged misconduct to
an internal or external source

An employee who does not extend to blind

conformity supporting illegal activities of the
organization, bending to organizational
pressures, or engaging in any other activities
which seriously violate social standards

Approxi
mate
severity
of
response

High

Low

Sabotaging
External whistle-blowing
Internal whistle-blowing
Threatening to blow the
whistle
Expressing concerns
Passively withdrawing

Mutual Trust joint faith in the responsibility and

actions of the parties involved; when it is present,
each person has a strongly positive expectation that
the other person will do the right thing. It can

however be broken through an inappropriate word or

action by either party. Further, loss of trust results in
a breakdown of the psychological contract
Psychological Contract (between employee and
org) defines the conditions of each employees
psychological involvement both contributions and
expectations with the social system

Employees agree to give a certain amount of loyalty,

creativity, and extra effort, but in return they expect
more than economic rewards from the systems. They
seek job security, fair treatment (human dignity),
rewarding relationships with co-workers, &
organizational support in fulfilling their development
expectations