()
 
Woodward found that successful firms employing small-batch and continuous-process technologies are similar to which of the following organization designs?
b. System 4
 
Organization ____ refers to the manner in which an organization’s structural components are arranged to manage the total organization.
a. design
 
Which of the following statements is NOT an accurate reflection of the relationship between organizations and organization design?
b. Once an organization is designed, the organization changes little.
 
The two universal approaches to organization design that represent the foundation of what we know about organization design are
c. bureaucratic and behavioral.
 
Weber viewed the bureaucratic form of organization as all of the following EXCEPT
d. personal.
 
When a patient in critical condition enters the emergency room, the skills of numerous people are geared toward saving the individual’s life. Sometimes this isn’t possible, and as a result, the personnel look to each other for emotional support. Subordinates and supervisors are close friends because they understand the emotional traumas that the others have experienced. According to Weber’s bureaucratic model
e. None of these choices
 
Weber’s guidelines for bureaucratic design include
d. a clear chain of command.
 
Employees at Blackrock had a mustache growing contest. It cost $20 to enter and $20 to be a judge. After a month the winner was announced and the money donated to the winner’s choice of charity. Which bureaucratic characteristic does this violate?
e. An appropriate social distance between supervisor and subordinate
 
Which of the following statements does NOT describe a characteristic of Weber’s bureaucracy?
d. It created labor unions.
 
Employees at Recordings for the Blind and Dyslexic met at a minor league baseball game to do an offsite meeting and enjoy a relaxed, friendly environment Which bureaucratic characteristic does this violate?
e. An appropriate social distance between supervisor and subordinate
 
In a bureaucracy, rules, division of labor, and hierarchies of authority
d. improve organizational efficiency.
 
Which of the following statements does NOT describe a shortcoming of bureaucratic organizations?
Organizational efficiency is reduced in a bureaucratic organization.
 
A small-town police force has six patrol officers, two radio dispatch operators, two supervisors, and one police chief. At any time, three patrol officers, one radio operator, and one supervisor are on duty. The police chief works from 8 a.m. to 5 p.m. Because of the size of the organization, a patrol officer can expect to deal with cases of vandalism, car theft, shoplifting, assault and battery, domestic disputes, broken traffic signals, and auto wrecks during a typical shift. Which of the following statements describes a problem that occurs because the police force does not use a bureaucratic organization design?
d. Its organizational efficiency is much less than it could be.
 
A System 1 organization is most like
c. a formal bureaucracy.
 
The behavioral model paralleled the emergence of
b. the human relations movement.
 
The best-known and most important behavioral approach to organization design is
d. Likert’s System 4.
 
A System 4 design emphasizes
e. All of these choices
 
Which of the following statements comparing System 4 and Weber’s bureaucracy is MOST accurate?
c. Both are universal approaches to organization design.
 
Which of the following statements about Likert’s approach is FALSE?
c. It is flexible and varies from one manager to another.
 
Which of the following is NOT a process characterized by Likert?
c. Planning
 
Which of the following is NOT a factor in the situational view of organization design?
a. Control
 
Which of the following BEST describes the situational view of organization design?
c. The appropriate organization design depends on the circumstances.
 
____ are internal organizational factors that can influence the organization design selection.
d. Organization size and the technology employed
 
Staples print shop prints whatever the customer requests. What class of technology does it use?
b. Unit production
 
Which of the following exemplifies the definition of technology in the text?
e. All of these choices
 
With ____ technology, products are produced in small quantities and made to customers’ specifications.
d. unit
 
Starbucks assembles and serves coffee and snacks. They use ____ technology.
d. unit or small-batch
 
Automakers build prototype vehicles first. This requires ____ technology.
d. small-batch
 
When Kellogg’s makes cereal and cereal bars, it uses ____ technology.
d. large-batch
 
Volkswagen makes automobiles. It uses ____ technology.
a. large-batch
 
Which of the following industries uses large-batch technology?
c. Furniture manufacturers
 
Facebook creates social networks. It uses ____ technology.
c. continuous-process
 
Google creates web search results. It uses ____ technology.
c. continuous-process
 
According to Woodward’s findings relative to technology and organization design, the most successful mass-production firms adopt a(n)
e. bureaucratic structure.
 
The technology that is most effective with a System 4 design is ____ technology.
d. both small-batch and continuous-process
 
In a stable environment organizations tend to be
d. differentiated
 
Discount retailers like Michael’s rely on economies of scale. They use ____ technology.
a. large-batch
 
As described by Burns and Stalker, mechanistic organizations are most like
a. bureaucracies.
 
Kansas State University operates in a relatively stable environment. According to the work of Burns and Stalker, which form of organization design is most appropriate for the university?
e. Mechanistic
 
Speedo operates in a fairly stable environment, Burns and Stalker would agree that the ____ design would be best for Speedo.
a. mechanistic
 
d
With ____ technology, products are produced in small quantities and made to customers’ specifications. A. large-batch B. continuous-process C. standardized D. unit E. mass-production
 
d
Starbucks assembles and serves coffee and snacks. They use ____ technology. A. large-batch B. continuous-process C. standardized D. unit or small-batch E. mass-production
 
d
Automakers build prototype vehicles first. This requires ____ technology. A. large-batch B. continuous-process C. standardized D. small-batch E. Mass production
 
d
When Kellogg’s makes cereal and cereal bars, it uses ____ technology. A. continuous-process B. unit C. specialization D. large-batch E. niche
 
a
Volkswagen makes automobiles. It uses ____ technology. A. large-batch B. continuous-process C. unit D. System 4 E. mass-customization
 
c
Which of the following industries uses large-batch technology? A. The diamond industry B. Fashion designers C. Furniture manufacturers D. Builders of sports arenas E. All of these choices
 
c
Facebook creates social networks. It uses ____ technology. A. large-batch B. unit C. continuous-process D. transformation E. small-batch
 
c
Google creates web search results. It uses ____ technology. A. large-batch B. unit C. continuous-process D. transformation E. small-batch
 
e
According to Woodward’s findings relative to technology and organization design, the most successful mass-production firms adopt a(n) A. free-form design. B. System 4 design. C. organic structure. D. matrix structure. E. bureaucratic structure.
 
d
The technology that is most effective with a System 4 design is ____ technology. A. small-batch B. large-batch C. continuous-process D. both small-batch and continuous-process E. both large-batch and continuous-process
 
d
In a stable environment organizations tend to be A. bureaucratic. B. mechanistic. C. System 1. D. differentiated E. All of these choices
 
b
Woodward found that successful firms employing small-batch and continuous-process technologies are similar to which of the following organization designs? A. System 1 B. System 4 C. Matrix design D. Mechanistic design E. Bureaucracy
 
a
Discount retailers like Michael’s rely on economies of scale. They use ____ technology. A. large-batch B. unit C. continuous-process D. transformation E. small-batch
 
a
As described by Burns and Stalker, mechanistic organizations are most like A. bureaucracies. B. organizational networks. C. System 4 organizations. D. matrix organizations. E. hybrid organizations.
 
e
Kansas State University operates in a relatively stable environment. According to the work of Burns and Stalker, which form of organization design is most appropriate for the university? A. Organic B. System 4 C. Hybrid D. Matrix E. Mechanistic
 
a
Speedo operates in a fairly stable environment, Burns and Stalker would agree that the ____ design would be best for Speedo. A. mechanistic B. organic C. matrix D. System 3 E. hybrid
 
a
Not long ago, there was no such thing as a dot-com company, but because of rapid technological evolution, many dot-com companies have been created, have been briefly successful, and have failed in a relatively short period. Those that have remained have had to be responsive to changes in their ever-changing external environments. As a rule, you would expect dot-com companies to have a(n) ____ design. A. organic B. System 1 C. hybrid D. matrix E. mechanistic
 
a
To be successful, Glamour magazine must respond to the latest fads and inform their readers of upcoming trends in fashion. This need for flexibility indicates that a(n) ____ design is appropriate. A. organic B. System 1 C. hybrid D. matrix E. mechanistic
 
b
As it was developed by Burns and Stalker, the ____ design is most like System 4. A. conglomerate B. organic C. matrix D. hybrid E. functional
 
b
Which of the following is NOT a characteristic of organic organizations? A. Open communication B. High level of specialization C. Low level of standardization D. Cooperation E. Unstable external environment
 
c
Lawrence and Lorsch used what two primary dimensions to characterize organizations? A. Dimension and flexibility B. Stability and uncertainty C. Integration and differentiation D. Autonomy and responsibility E. Organic and mechanistic
 
a
The Siemens sectors are industry, energy, healthcare, and infrastructure and cities, which all require strong engineering. Siemens uses related diversification. The divisions are A. integrated. B. relatively stable. C. mechanistic. D. differentiated. E. autonomous.
 
a
Organization ____ refers to the manner in which an organization’s structural components are arranged to manage the total organization. A. design B. structure C. development D. behavior E. management
 
b
Which of the following statements is NOT an accurate reflection of the relationship between organizations and organization design? A. Organization design is used to manage the total organization. B. Once an organization is designed, the organization changes little. C. Organization design for large organizations is extremely complex compared to that for smaller organizations. D. Organization design is the overall pattern of the structural components that make up an organization. E. Organization design is influenced by many of the same factors that influence an organization’s structure.
 
c
he two universal approaches to organization design that represent the foundation of what we know about organization design are A. classical and scientific. B. administrative and classical. C. bureaucratic and behavioral. D. bureaucratic and scientific. E. behavioral and administrative.
 
d
weber viewed the bureaucratic form of organization as all of the following EXCEPT A. logical. B. rational. C. efficient. D. personal. E. the one best way.
 
d
Weber’s guidelines for bureaucratic design include A. functional departmentalization. B. a contingency approach to management. C. a human relations approach to management. D. a clear chain of command. E. All of these choices
 
e
Employees at Blackrock had a mustache growing contest. It cost $20 to enter and $20 to be a judge. After a month the winner was announced and the money donated to the winner’s choice of charity. Which bureaucratic characteristic does this violate? A. Too many rules B. No specialization of labor C. No clear chain of command D. A narrow span of management E. An appropriate social distance between supervisor and subordinate
 
d
Which of the following statements does NOT describe a characteristic of Weber’s bureaucracy? A. It tends to be rigid and inflexible. B. It works better in stable environments. C. It was the starting point for later organization design research. D. It created labor unions. E. It stated employees should be protected from arbitrary dismissal.
 
e
Employees at Recordings for the Blind and Dyslexic met at a minor league baseball game to do an offsite meeting and enjoy a relaxed, friendly environment Which bureaucratic characteristic does this violate? A. Too many rules B. No specialization of labor C. No clear chain of command D. A narrow span of management E. An appropriate social distance between supervisor and subordinate
 
d
In a bureaucracy, rules, division of labor, and hierarchies of authority A. affect goal setting. B. restrict the flow of information. C. increase the number of lateral relationships. D. improve organizational efficiency. E. reduce the need to process information.
 
b
Which of the following statements does NOT describe a shortcoming of bureaucratic organizations? A. With bureaucratic organizations, social processes are ignored. B. Organizational efficiency is reduced in a bureaucratic organization. C. There is extensive use of division of labor in a bureaucratic organization. D. With bureaucratic organizations, assumptions about employee loyalty are unrealistic. E. Bureaucratic organizations tend to be rigid and inflexible.
 
d
A small-town police force has six patrol officers, two radio dispatch operators, two supervisors, and one police chief. At any time, three patrol officers, one radio operator, and one supervisor are on duty. The police chief works from 8 a.m. to 5 p.m. Because of the size of the organization, a patrol officer can expect to deal with cases of vandalism, car theft, shoplifting, assault and battery, domestic disputes, broken traffic signals, and auto wrecks during a typical shift. Which of the following statements describes a problem that occurs because the police force does not use a bureaucratic organization design? A. Its organization is rigid and inflexible. B. Appropriate social distances are maintained. C. Assumptions about employee loyalty are unrealistic. D. Its organizational efficiency is much less than it could be. E. Officers must work in a dynamic environment.
 
c
System 1 organization is most like A. a matrix design. B. an organic design. C. a formal bureaucracy. D. a hybrid design. E. a dictatorship.
 
b
The behavioral model paralleled the emergence of A. the classical management school. B. the human relations movement. C. quantitative management theory. D. the development of contingency theory. E. the development of systems theory.
 
d
The best-known and most important behavioral approach to organization design is A. Weber’s bureaucracy. B. the divisional form. C. Woodward’s simple structure. D. Likert’s System 4. E. the linking pin approach.
 
e
System 4 design emphasizes A. open and extensive interaction processes. B. supportive relationships. C. group decision making. D. high-performance goals. E. All of these choices
 
c
Which of the following statements comparing System 4 and Weber’s bureaucracy is MOST accurate? A. Both neglect the goal of organizational efficiency. B. Both tend to be flexible and fluid. C. Both are universal approaches to organization design. D. Both developed from the classical school of management thought. E. Both support design based on the current environment.
 
c
Which of the following statements about Likert’s approach is FALSE? A. It holds that the bureaucratic model has numerous drawbacks. B. It advocates a System 4 design. C. It is flexible and varies from one manager to another. D. It characterizes eight processes. E. It paralleled the human relations school of management.
 
c
Which of the following is NOT a process characterized by Likert? A. Leadership B. Decision making C. Planning D. Controlling E. Communication
 
a
Which of the following is NOT a factor in the situational view of organization design? A. Control B. Size C. Technology D. The environment E. Organizational life cycle
 
c
Which of the following BEST describes the situational view of organization design? A. The appropriate organization design should be based on the behaviorist perspective. B. The appropriate organization design uses the bureaucratic model. C. The appropriate organization design depends on the circumstances. D. The appropriate organization design is similar to System 4. E. The appropriate organization design uses the hybrid approach.
 
d
___ are internal organizational factors that can influence the organization design selection. A. Organization size and the organizational environment B. Slack resources and technology employed C. Technology employed and the organizational environment D. Organization size and the technology employed E. Slack resources and size
 
b
Staples print shop prints whatever the customer requests. What class of technology does it use? A. Downsized B. Unit production C. Mass production D. Continuous process E. Decentralized
 
e
Which of the following exemplifies the definition of technology in the text? A. Converting iron ore into steel B. Creating a work of art from paint and canvas C. Creating a website for a business start up D. Transforming lumber into fine furniture E. All of these choices
 
What is strategy?
Strategies are long term decisions managers make to achieve organizational goals •Primary goal for the business is comparatively superior financial performance. *High profitability OVER TIME*.
 
Competitive Advantage:
the ability of a firm to provide value to customers that exceeds what competitors can provide
 
sustainable competitive advantage
being able to provide superior value for a long time
 
Distinctive Competencies
•The whole point of strategy then is to create and maintain advantage over competitors. •Accomplished by creating a distinctive competence that other companies don’t have
 
Generally two sources of competitive advantage with Distinctive Competencies
•Lower cost products •Differentiated products
 
Protect that competence at all costs through
•Barriers to imitation •Or hopefully the imitator has legacy constraints
 
Strategic Analysis
-We accomplish this through strategic analysis. -Use environmental scanning, which is the systematic and intentional analysis of •Uncontrollable external factors •Somewhat controllable internal factors
 
competitive environmental
•In general, we work from the outside in.
 
PESTEL
-Political forces -Economic forces -Sociocultural forces -Technological forces -Environmental forces -Legal forces
 
Political Forces
influence of political and legal institutions on people and organizations *(e.g., trade agreement, regulations, tariffs)
 
Economic Forces
consist of the general economic conditions and trends – unemployment, inflation, interest rates, economic growth – that may affect an organization’s performance
 
Technological Forces
Outcomes of changes in the technology that managers use to design, produce, or distribute goods and services -(e.g., innovation, automation, new business models)
 
Environmental Forces
The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces. -(e.g., resource scarcity, environmental requirements)
 
Legal Forces
responsible for legislation and interpretation of laws -(e.g., contracts, laws, patents, copyright)
 
Sociocultural Forces
The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles -(e.g., demographics, consumer preferences, fads)
Five Forces Analysis
Five Forces Analysis
a method of analyzing the five forces in the competitive environment
 
Threat of Entry
Barriers to entry •Supply side economies of scale – cost reduction associated with large output •Demand side economies of scale – Network effects from large customer base •Brand loyalty – the preference of consumers for the products of established companies •Customer Switching costs – Embeddedness based on product characteristics •Capital requirements •Exit difficulty •Regulatory hindrances – Government policy restrictions
 
barriers to entry (Threat of entry)
factors that might make it costly for potential competitors to enter an industry and compete with firms already in the industry
 
Threat of substitutes
•The goods or services of different businesses or industries that can satisfy similar customer needs •If there are few substitutes, firms have the opportunity to raise prices
 
The existence of substitutes is a strong competitive threat
because it limits the price that companies in one store can change
 
Bargaining power
•Buyers and suppliers are two sides of the same coin •Buyers are least powerful vs most powerful when •Switching Costs
 
Buyers are least powerful when:
•They are plentiful and purchase in small quantities •They have little choice •They cannot switch easily between the offerings of different firms
 
buyers are most powerful when
•They are few in number and purchase large quantities •They can choose between equivalent products from many different firms •They can switch easily between the offerings of different firms
 
Intensity of rivalry
•Competitive Structure •Cost Structure •Demand and supply conditions •The nature of the product
 
Intensity of rivalry (cont)
•The fixed costs of closing down capacity •An unwillingness to reduce capacity due to a belief that demand will soon rebound •Government regulations
 
nature of the product
commodity (a product that is difficult to differentiate from those produced by rivals
 
Demand and supply conditions
•If demand is growing the industry will appear favorable. •Influenced by economic growth & rising income levels
 
cost structure
•High fixed costs = increased intensity
 
competitive structures
•Fragmented v. Consolidated •Fragmented more intense. Fewer barriers to entry.
 
The secret “sixth force”
•Complements •Some products don’t have value unless necessary complementary products exist and have utility value •E.g., GM Hummer
 
Competitors
-Gaining information about your competitors so you can anticipate their moves and react appropriately -•Typically look at your strategic group as your direct competitor.
 
legal ways to gain intelligence include:
•Public materials and advertising •Investor Materials (SEC declarations for example) •Informal sources (Gossip, trade shows, even your own customers)
 
Less ethical ways to gain intelligence
•Corporate Espionage •Talent poaching
 
The Internal Environment
•Primary activities directly add value for customers. •Support activities don’t add value, but are required for the firm to survive. •Each primary activity should add value in some way •HOWEVER, at least one needs to be a distinctive competency. •This is based on the resources controlled and the capabilities of the firm. •Resources = things a firm has •Capability = things a firm can do
 
A simple way to think of a company is as a
collection of resources and capabilities used to create something of value
 
Resource Based View of the firm
•Theory that answers “What is a firm?” •Transaction Cost Economics says that a firm boundary is a cost “event horizon” •RBV extends this to say that firms are collections of resources that can create value.
 
What is a resource?
Pretty much anything •People •Machines •Land •Intellectual Property •Etc.
 
What is a VALUABLE resource though?
•Not all resources a firm controls is valuable from a competitive advantage perspective •We use a VRIO model to determine what adds value.
 
Valuable resource
Must provide utility value for customers •Based in distinctive competence that produces… •Comparative advantage, or value when compared to competing products
 
rare resource
•More uncommon = less competition •Rarity is a short term basis for advantage
 
Inimitable resources
– Can’t be copied. •Tangible barriers to imitation (location, patent) •Intangible barriers to imitation (human capital) Non-substitutable – Are there any close substitutes for a customer to satisfy the same need
 
organized to capture value
•Can the firm effectively use the resource? •Includes structure, policies, control systems, culture and many others •Example: First mover advantage isn’t necessarily an advantage
 
strategy implementation
•A great strategy is worthless with out proper execution. •Maintain strategic control
 
maintain strategic control
•Engage people •Keep it simple •Stay focused •Keep moving
 
Focused Strategies
•A focused strategy is a narrow market version of the two primary competitive strategies.
 
focus cost
•Narrow market to reduce costs •Cost product to niche e.g. Dollar General
 
Focus Differentiation
•Narrow market with distinct value •Differentiated product to niche e.g., Ferrari
 
There are many ways to differentiate:
•Style •Quality •Reliability •Speed •Fashion •Durability
 
Firms seeking a differentiation strategy often
•Invest in research •Emphasize the importance of learning new capabilities to stay ahead of the competition •They must be able to exploit these new capabilities. •Face stiff competition from imitating firms
 
Differentiation Strategy
•Differentiation allows a company to demand a premium price •If costs are kept to the industry average, the premium price provides above average profits •Requires a continuous search
 
Making one’s product or service different from those of
competitors on dimensions valued by customers.
 
Achieving Cost Leadership
A variety of means to become the low cost producer including: •use of special technology •economies of scale •advanced information systems
 
Business Level Competitive Strategies
-We have two general forms of competitive strategy. •Cost Leadership •Differentiation -Cost leadership is based on being the lowest cost producer of a good or service.
 
If a company produces its goods or services for less than others in its industry
•It can make higher profit by charging the same prices as others •OR be the low price seller and make higher profits through making more sales.
 
Business-level strategy is most common.
•Speaks directly to how a company competes in a particular industry. •This is what we think about usually when we say business strategy. •How does the business support the corporate strategy?
 
Unit Level strategy is what you will most likely experience first.
•These are operational units within a business. •How does the unit support the business strategy?
 
corporate level strategy
level strategy is broadest. •How does a large company with many businesses grow and become profitable? •Makes decisions about what businesses to be in. Typically a collection of businesses
 
Strategic Levels
corporate, business, unit •Three levels of strategy you’ll encounter in your career. •They cascade.
 
stability strategy
designed to remain in the current strategic position.
 
defensive strategy
designed to address declining performance. -turn around strategy -Retrenchment strategy
 
turn around strategy (defensive)
•when an organization’s problems are more serious, more drastic action is needed.
 
Retrenchment strategy (defensive)
•a short-run renewal strategy used for minor performance problems.
 
diversification growth strategy
•Related diversification – when a company combines with other companies in different, but related industries. •Unrelated diversification – when a company combines with firms in different and unrelated industries.
 
Horizontal integration growth strategy
•a company grows by combining with competitors.
 
Vertical Integration growth Strategy
•Backward vertical integration – the organization becomes its own supplier. •Forward vertical integration – the organization becomes its own distributor.
 
single-product growth strategy
•Focuses on its primary line of business and increases the number of products offered or markets served in this primary business.
 
Types of Growth Strategies
1. single product 2. Vertical integration 3. Horizontal integration 4. Diversification
 
2ish forms of competitive strategy
•Cost competition •Differentiation competition
 
Three Types of Strategy
•Growth – Expansion into new products/markets •Stability – Maintenance of Status Quo •Defensive/Retrenchment- Examination and addressing weaknesses
 
Developing a Strategic Position
•Once you have an understanding of your firm and the environment, then you can actually start formulating a strategy.
 
Understanding Organizational Goals
•Understand the Mission of the organization, which is more specific and detailed than the vision. •HOW does the vision become a reality? What do you have to do? •Many organizations confuse these. •Both are important because you have to know where you’re going if you want to get there.
 
Understanding Organizational Goals con
•Establish a Vision for the organization •What the organization ultimately wants to be •Usually short and abstract, but compelling •Inspires members of the organization to ‘stretch’ for this identity •Also serves as a touchstone •Captures -general identity -direction -level of aspiration
 
Strategic principles
•Once the analysis is done, there are four simple rules we have to follow to have an effective strategy 1.Understand the organizations goals. 2.Decide how we position ourselves strategically -1) Delivering higher value to customers or -2) Delivering comparable value at a lower price 3.Understand the tradeoffs between positions – You cannot be all things to all people! 4.Create “fit” among all business activities •Activities that work against one another decrease overall effectiveness
 
Benchmarking
•Comparing the target organization with other organizations in the industry •Again, tempting but problematic. •Good if you’re behind other orgs, but if you’re trying to create value and, thus, competitive advantage, it isn’t good. •End up being a copy of those other organizations.
 
trend analysis
•Using past events to predict future events. •Tempting but problematic. •Past events do not predict future events.
 
Forecasting
projection futures states
 
Superior Alternatives to SWOT
-Benchmarking -•Trend analysis -Forecasting
 
Some issues with SWOT though
•Single point in time (recency bias) •It is often used to confirm previous assumptions. A single 30 minute exercise isn’t enough to develop insights about the strengths, weaknesses, opportunities and threats that face an organization. •It is often completed and then forgot. It doesn’t act as a planning tool.
 
SWOT analysis
strengths, weaknesses, opportunities, threats
 
Strengths (SWOT Analysis)
What are we good at? What is our distinctive competency?
 
Weaknesses (SWOT Analysis)
What are we bad at? Is there some needed action that we’re just not capable of?
 
Opportunities (SWOT Analysis)
What is happening in the external environment that we can take advantage of?
 
Threats (SWOT Analysis)
What is happening in the external environment that is dangerous to us?
 
Four Management Functions
Planning, organizing leading, and controlling
 
leading
good leaders know themselves and understand what motivates others
 
Interdisciplinary Field
study human attitudes, behavior, and performance in organizations having insight into why people behave as they do is a part of good management. by increasing their understanding of individual differences, managers can learn how to get the best out of each employee and more effectively lead people through workplace challenges.
 
Perception
cognitive process people use to make sense of the environment. observe, screen, and organize our brains are efficient (or lazy) so we use shortcuts when we make judgements
 
Stereotyping
generalizing about group or individual
 
Halo effect
impression based on one characteristic
 
Perceptual defense
protecting oneself against objects and ideas that are threatening
 
attributions
judgments about the cause of a person’s behavior
 
Fundamental attribution error
underestimating the influence of external factors and overestimating the influence of internal factors
 
Self-Serving bias
giving too much credit for oneself when a job is done well, and blaming external factors for failure to perform
 
Self-Confidence
refers to general assurance in one’s own ideas, judgment, and capabilities
 
Self-Efficacy
individual’s belief that he or she can accomplish a specific task or outcome successfully
 
Self-Awareness
being aware of the internal aspects of one’s nature, such as personality traits, beliefs, emotions, attitudes, feelings and perceptions, and appreciating how your patterns affect people.
 
Self-Assessment
reflection to gain insights into oneself from the results of self-assessment instruments
 
Myers-Briggs Poor test-retest reliability
if you take the test after only a 5 week gap, there’s a 50% chance that you will fall into a difference personality category than before. assumes that personally falls into mutually exclusive categories. you are either an extrovert exclusive categories. you’re either an extrovert or an introvert, but never a mix of the 2. yet people fall somewhere in the middle
 
Myers-Briggs Problems
there is no evidence that shows people that fall within certain Myers-Briggs types are more successful in some occupations than others and if they’re more satisfied within specific occupations
 
Personality- Big Five
Openness to Experience Conscientiousness Extroversion Agreeableness Neuroticism (Emotional Stability)
 
Openness to Experience
The degree to which a person has a wide range of interest and is willing to consider new ideas
 
Conscientiousness
The degree to which a person is responsible, dependable, persistent, and achievement-oriented.
 
Extroversion
The degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships.
 
Agreeableness
The degree to which a person gets alone with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting
 
Neuroticism(emotional Stability)
The degree to which a person is tense, depressed, moody, or insecure rather than calm, enthusiastic, and self-confident
 
Enhancing Your Self-Awareness
Self-Assessment: reflection to gain insights into ones from the results of self-assessment instruments Soliciting Feedback: Seeking feedback to enhance self-awareness improves performance and job satisfaction
 
Attitude and behaviors are influenced by personality
an evaluation- either positive or negative- that predisposes a person to act in a certain way. managers need to understand employee attitudes for job behaviors. they want to develop and reinforce positive attitudes positive, happy people are healthier, more effective, and more productive. Cognitive –> Affective–> Behavior
 
Job Satisfication
positive attitude toward one’s job
 
Organizational commitment
An employee’s loyalty to and engagement with the organization
 
Organizational Citizenships
Work behavior that goes beyond job requirement and contributes to the organization’s success
 
Emotions
Mental state that arises spontaneously within a person based on interactions. People cannon be separated from their emotions Managers can influence positive or negative emotions at work (emotional contagion). good managers pay attention to people’s emotions
 
Self-Management
ability to control disruptive or harmful emotions
 
Social awareness
ability to understand others and be empathetic
 
Relationship management
ability to connect to others, build relationships, respond to others’ emotions and influence others.
 
expressed emotions
Surface Acting: displaying an emotion without really feeling it Deep Acting: generating the actual emotion that needs to be displayed
 
Stress can cause negative consequences
Absenteeism Presenteeism- the practice of going to work despite illness, injury, anxiety, etc, often resulting in reduced productivity. ppl go to work but my be too stressed to be productive poor performance
 
Task Demands
stressors arising from the tasks required of a person holding a particular job Role ambiguity- people are unclear of the task behavior expected of them
 
Interpersonal Demands
Stressors associated with relationships in the organization Role conflict- occurs when an individual faces incompatible demands Work life balance
 
Behavior Types
Type A: pattern characterized by extreme competitiveness, impatience, aggressiveness, and devotion to work Type B: pattern that lacks type A characteristics and includes more balanced, relaxed lifestyle
 
Challenge Stress
stress that challenges and helps increase focus
 
Threat Stress
stress that is counterproductive
 
Bad Management (create stress)
impose unreasonable demands and workloads. don’t let others have a say in how they do their work. create doubt about how well employees are performing. etc
 
Management (reducing stress)
Destroy sources of stress Find support Meditate Quiet Rooms
 
Management
promotes stability and order within the existing organizational structure
 
Leadership
ability to influence people toward the attainment of goals. it motivates toward vision and change. leadership is an important management role
 
Contemporary leadership approaches
Level 5 leadership Servant Leadership Authentic Leadership Interactive Leadership
 
Level 5 Leadership
Highest level in the hierarchy: Lack of ego (humility), Fierce resolve to do what is best for organization, shy and self effacing, credit other people. level 1: individual (contributes, talent, skills, knowledge) L2: Team member ( contributes, individually; work well in groups) L3: Manager (managers, team member and assets to reach set objectives) L4: Leader (stimulates high standards; champions dedication to vision) L5: Executive (builds excellence through dedication and humanity)
 
Servant Leadership
who exist for the development of the worker. transcend self interest to serve others . give away power, ideas, information, recognition, credit, and money
 
Authentic Leadership
Leaders who know and understand themselves. Espouse and act with higher order ethical values. Staying true to one’s values and beliefs. Inspire trust & commitment Respect diverse viewpoints
 
Interactive Leadership
the leader favors a consensual and collaborative process. influence derives from relationships rather than position power and formal authority
 
Traits
Distinguishing personal characteristics of a leader. (intelligence, honestly, self confidence and appearance) traits are reemerging as a leadership interest effective leaders possess varied traits and combine these with their strengths
 
Charismatic Leaders
skilled in the art of visionary leadership.(vision : attractive, ideal future) Inspire & motivate people to do more (lofty vision, ability to understand & empathize, empowering & trusting subordinates) visionary leaders speak to the hearts of employees to be a part of something big.
 
Transactional
Clarify task Initiate structure Provide awards Improve productivity Hard working Tolerant and fair minded Focus on management
 
Transformational
innovative recognize followers needs inspire followers create a better future promote significant change
 
Behavioral Approaches
Research beyond leadership traits. defined 2 leadership behaviors (task oriented behaviors, people oriented behavior) Foundation of important leadership studies
 
Ohio state studies identified 2 major behaviors
Consideration: people oriented (mindful of subordinates, respects ideas & feelings, establishes mutual trust) Initiating Structure: task behavior (task oriented, directs works activities toward goals)
 
Michigan Studies
Employee-centered leaders (most effective): establish high performance goals, and display supportive behavior Job-centered leaders (not effective): less concerned with goal achievement/human needs, Focus on meeting schedules, cost-management, and efficiency
 
(Contingency Approaches) How do situations influence leader effectiveness?
Situational theory of leadership Leadership model (Fiedler) Substitute for leadership concept
 
Situational Theory of leadership
Extension of behavioral theories Focus on characteristics of followers Seek appropriate leadership behavior Subordinates vary readiness determined by: Degree of willingness and ability a subordinate demonstrates while performing a task
 
Fiedler Contingency Theory
Leader’s style is task oriented or relationship oriented (relatively fixed leadership style difficult to change) Goal is to match the leader’s style with organizational situation. Analyze the leader’s style to the favorability of the situation
 
Situational Substitutes for Leadership
There are situations where leader style is unimportant. there are situations and valuable that can substitute or neutralize leadership characteristics.
 
Followership
Organization does not exist without followers. understand followers: critical thinking versus dependent uncritical thinking. (alienated followers, passive followers, conformist, pragmatic survivor, effective followers)
 
Position Power
Legitimate power Reward Power Coercive power
 
Personal power
expert power referent power Other sources: personal effort, relationship network, information)
 
Influence Tactics
Scarcity, Consistency, Consensus
 
Communication
process by which information is exchanged and understood by 2 or more ppl, usually with the intent to motivate or influence behavior (managers job (80% of their day) communication permeates every management function. Manager’s communication is purpose-directed (directs everyone’s attention toward the goals)
 
Managers as Communicator (persuasion & influence)
Managers must communicate frequently & easily. communicating with candor means being direct, honest, and clear about what employees need to do. (establish credibility, build goals and common ground, connect emotionally, use multiple media to send important messages) Understand how complex communication is and understand the key elements of the communication process.
 
Communication between people
Can break down if the sender & receiver do not encode or decode in the same way. Different backgrounds can lead to different interpretations of the same info. Culture differences can add to the challenge Some cultures are high-context while other are low-context
 
Non-Verbal Communication
Message sent through human actions and behavior (body language, Facial expressions, Gestures, Touch, Use of Space) Can express enthusiasm, warmth, confidence, arrogance, indifference, and displeasure (alters how you perceive yourself and how other perceive you)
 
Written Communication
Respect the reader, know your point and get to it, write clearly rather than impressively, and get a second opinion)
 
Use of Technology to communicate
Increase desire for instant access & information sharing. Companies are using social media to connect with employees and customers. Podcast, blogs, and Wikis are effective collaboration tools
 
Social Media
useful tool for engaging both customers, employees, and potential employees. Do not just respond. use it as a tool to hear what customers and employees are saying. What do they want?
 
Listening
The skill of grasping both facts and feelings to interpret a message’s meaning. Listening to employees and customers is important Info in organizations flow from the bottom up (Managers today know the importance of feedback)
 
How do you choose a communication channel
If you are cancelling, apologizing, rebuking, or criticizing it’s best to talk (preferably in person) If you require documentation you should email or send a letter. If you are angry, wait to communicate
 
Organizational Communication
managers are responsible for establishing and maintaining formal communication. Formal communication channels flow within the chain of command. (downward, upward, horizontal)
 
Upward Communication (interpret)
Problems & exceptions Suggestions for improvement Performance reports Grievances & disputes Financial & Accounting info
 
Horizontal Communication (coordinate)
Intradepartmental problem solving Interdepartmental coordination Changes initiatives and improvements
 
Downward Communication (Influence)
Implementation of goals, strategies Job instructions & rationale Procedures & Practices Performance feedback Indoctrination
 
Centralized
networks team or organizational members must communicate through a particular person to solve a problem or make decisions(faster)
 
Decentralized
Networks individuals can communicate freely with other team members to make decisions or solve problems (more creative and innovative)
 
open climate
Encourage honestly. enhanced interpersonal skills can also foster openness, honesty, and trust. use multiple channels increases effectiveness of communication. organizational structure should fit communication needs
 
Crisis Communication
communication is crucial. managers must stay calm, listen hard, be visible, get the awful truth out, communicate a vision for the future
 
Personal Communication Network
personal networking across organizational boundaries
 
The grapevine “Gossip”
Can be a valuable tool for managers; it links ppl across organization
 
Written communication
key skill with the growth of e-mail and collaboration
 
networking tips
build it before you need it. never eat lunch alone make it a win-win focus on diversity
 
Motivation
the arousal of enthusiasm and persistence to pursue a course of action. employee motivation affects organizational performance and profits. A manager’s job is to channel motivation toward the accomplishment of goals. can also be motivated by fear but a good managers wouldn’t bc it can damage employee commitment and performance in the long run.
 
Intrinsic Motivation
satisfaction a person receives in the process of performing a particular action (feelings of accomplishment or pride after finishing a task)
 
Extrinsic Motivation
Given another person (promote, bonus, gifts, praise from others)
 
Intrinsic Vs Extrinsic
not everyone values the same things. Extrinsic rewards can quickly become expected. An overabundance of outside motivators can actually lead to decreased intrinsic motivation and a dip in creativity.
 
Content Perspectives on Motivation
Emphasize the needs that motivate people (Maslow’s Hierarchy of Needs, ERG Theory, Acquired Needs, Hertzberg’s Two-Factor Theory)
 
Process Perspective
Explain how people select behaviors to meet their needs and determine if their choices were successful
 
Reinforcement Perspective
Behavior is directed by pervious consequences
 
Job Design
Applying motivation theories to design a motivation workplace.
 
ERG (content perspective) by Clayton Alderfer
Existence needs: needs for physical well-being Relatedness needs: the needs for satisfactory relationships with other Growth needs: the needs that focus on the development of human potential and the desire for personal growth
 
Frustration-Regression principle
failure to meet a high order need may cause a regression to an already satisfied lower order need
 
Herzberg’s Two Factors (content perspective)
the manager’s role is to remove disatisfiers- that is, to provide hygiene factors sufficient to meet basic needs- and then to use motivators to meet higher level needs and propel employees towards greater achievement and satisfaction
 
Acquired Needs (content perspective)
needs you are not born with but learn through life experiences
 
Process perspective
explain how people select behaviors to meet their needs and determine if their choices were successful (goal setting theory, equity theory, expectancy theory)
 
Goal setting theory (process perspective)
targets significantly enhance people’s motivation and performance. managers can improve performance by setting specific goals. increase motivation and enhance performance by setting goals and providing timely feedback. (goal specificity, goal difficulty, goal acceptance, feedback)
 
Equity theory (process perspective)
individual perceptions of fairness. Inequity occurs when the input-to-outcome ratios are out of balance Perceived inequity can be reduced by changing work effort, outcomes, perception, and leaving the job
 
Expectancy Theory (process perspective)
motivation depends on individuals’ expectations about their ability to perform task and receive desired rewards. It suggests that a person’s behavior is based on 3 factors: Expectancies, Instrumentality, and Valence
 
Expectancies
the link between trying to perform a behavior and actually performing well
 
Instrumentality
A belief that performing a given behavior is associated with particular outcome
 
Valence
the value that a person places on an outcome
 
Avoidance Learning (Negative reinforcement)
when behavior is followed by the removal or avoidance of negative consequences. behavior is more likely to be repeated
 
Extinction
when behavior is followed by no consequences. behavior is less likely to be repeated
 
Punishment
when behavior is followed by negative consequences behavior is far less likely to be repeated
 
Vicarious learning
observational learning from seeing other’s behaviors and the consequences of those behaviors.
 
Variable Compensation
key motivational tool
 
Incentives
can backfire, and should be combined with motivational ideas and intrinsic rewards and meeting higher level needs. Incentives should reward the desired behavior
 
Job Enrichment
Enlargement: combining a series of tasks into one new, broader job to give employees variety and challenge. Work redesign: altering jobs to increase both the quality of employee’s work experience and their productivity
 
Dimensions that determine a job’s motivational potential
Skill variety, task identity, task significance, autonomy, & feedback. Based on critical psychological states, personal and work outcomes, employee growth need strength
 
Empowering People
employees receive information about company performance, have knowledge and skills to contribute to company goals, have power to make substantive decisions. employees are rewarded based on company performance.
 
Engagement
instill a sense of support and meaning. help employees develop positive relationship with colleagues and supervisors. Focus on learning, contribution, and growth. motivation through engagement : Autonomy, Mastery, Purpose.

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