14 Chapter 5 Employee Behaviors to explain/ predict/influence: Employee Productivity: (don't focus on this in work) performance measure of efficiency/effectiveness Absenteeism: the failure to report to work Turnover: withdrawal from an organization Organizational Citizenship Behaviorgoing above and beyond job requirements ATTITUDES: 3 Components Cognitive component: the beliefs, opinions, knowledge, information held by a person- know it's a bad situation so you don't plan on being happy Affective component: the emotional/feeling part of attitudegrouchy attitude Behavior component: the intention to behave in a certain waydon't smile b/c you're unhappy 3 work related Attitudes: Job involvements, organizational commitment, perceived organizational support- do you feel the org. cares about you Job satisfaction- if employees are satisfied w/ their jobs they will work harder; orgs w/ higher satisfaction have highr productivity Attitudes and Consistency: *People seek C in two ways: among their attitudes and b/w their attitudes and behaviors *If an inconsistency arises, people: Alter attitudes, alter their behavior, develop a rationalization Personality Tests: MBTI: 1. Social Interaction: Extrovert or Introvert 2. Preference for gathering data: Sensing or Intuitive 3. Decision-making: Feeling or Thinking 4. Style of making decisions: Perceptive or Judgmental Big 5 Model: Extraversion- degree to which someone is sociable Agreeableness- degree to which someone is good-natured Conscientiousness- degree to which someone is responsible Emotional Stability- degree to which someone is calm, emotional, tense, etc. Openness to experience- degree to which someone is imaginative and intellectual 5 More Personality Traits: Locus of control- either internal or external: people believe that they control their own destiny or believe their lives are controlled by outside force Machiavellianism- high in this = pragmatic, maintains emotional distance and believes that ends can justify means Self-Esteem- the degree to which people like/dislike themselves Self Monitoring- individuals ability to adjust his behavior to external situational factors incl. Impression Management- attempt to control the impression others take from them Risk Taking- willingness of people to take chances Emotions and Emotional Intelligence: Emotions impact everyone differently including at work, depending on job, etc. Emotional Intelligence: the ability to notice and manage emotional cues and information by 5 dimensions: self-awareness, -management, motivation, empathy & social skills Perception: we behave according to our perceptions, so when we develop perception we can learn how people operate differently Attribution Theory: Tendency to judge observed behaviorbased on meaning we attribute to behavior; internally caused behavior under your control externally caused behavior due to outside factors, not your fault Fundamental Attribution Errorunderestimate influence of external factors and overestimate the influence of internal (applied to our judgment of others) Self-Serving Bias- Tendency to attribute successes to internal factors while blaming failures on external factors (applied to self-judgments) 3 Shortcuts used in judging others: Assumed Similarity: assuming others are more like us than they actually are Stereotyping: Judging someone on the basis of our perception of a group they are a part of Halo Effect- if we like something about someone, assumption we will like the person Social Learning Theory: learning from what happens to other people as well as direct experience in mgmt we use this to shape behaviors of employees Operant Conditioning IDEALS: Behavior is a function of its consequences and learned through experience, learned by making rewards contingent to behaviors, positively reinforced is likely to be repeated,
punished/ignored is less likely to be repeated SHAPING BEHAVIOR: *Attempt to mold individuals by guiding their learning in graduated steps *reinforcing each successive step toward the desired response * timing of reinforcement/ punishment * Effective rewards/ punishment differ by individual SCHEDULES REINFORCEMET: Continuous- coke machine compliments, IntermittentFixed Intermittent-weekly paycheck Variable- pop quiz *The 7 Habits of Highly Effective People Be proactive, Begin with the end in mind, Put First things first, Think "win-win"- avoid competing, seek to understand, then to be understood, Synergize- value and exploit mental, emotional and psychological differences- group, Sharpen the saw- don't waste time it makes you dull Personality ethic- appearance is everything Character ethicinterdependent success with other people; practice continuous learning and self-improvement Chapter 16 Motivation- Processes that account for your willingness to exert effort, reach organizational goals and are conditioned by satisfaction of need Key elements: Intensity, direction towards goal, persistence
Maslow's Hierarchy of Needs:
managers tend to be high nPow, low nAff. Goal-Setting Theory (Locke) Specific goals with feedback lead to increased performance; difficult goals, when accepted, result in higher output than easier goals; once high achiever accepts goal, they are motivated to reach it Reinforcement Theory: Behavior is a function of its consequences Timing-to best shape behavior: consequences should immediately follow response Positive v. Negative Reinforcement: People tend to exert more effort on positively reinforced tasks; ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors Job Characteristics Model: High on one: Skill Variety: High- business owner Low- assembly line Task identity- Highcabinet maker Low machinist Task significance: High-nurse Low- Chicken sexer High on both: High- commission sales Low- telemarketer Feedbackhigh- auto mechanic student Lowassembly line, transcription Equity Theory: Employees weigh what they put into a job situation (input) against what they get from it (outcome) Then they compare their input-outcome ratio with relevant others. If inequities exists employees will try to correct them * Distributive justice- Amount/allocation of rewards; concern for both absolute/ relative nature of rewards Procedural justice- process used to determine distribution of rewards; OCB's significantly influenced by perceptions of procedural fairness Expectancy Theory: Will work harder if you expect that greater effort will lead to higher rewards that are valuable to you
Storming- conflict w/ differences, team production < ind. production Normingintegration, understand, team production = ind. production Performingintegration, full utilization of diversity, team production> ind. Production. Adjourning- disband Group Success Variables- External conditionsauthority structures, availability of resources, perf. man. System Group Member Resources- knowledge, skills, personalities, diversity Group StructureRoles, Norms, Status, Conformity- [dark side is groupthink: phenomenon in which the norm for consensus overrides the realistic appraisal of alt. courses of action symptoms: rationalize resistance to assumptions, pressure doubters to support alt. favored by majority, doubters keep silent, group interprets members' silence as a yes vote variables influencing: group's cohesiveness, leader behavior, insulation from outsiders, time pressures, failure to follow methodical decision process] Composition- [common demos. -Or common dissimilarity, to minimize `outsiders', give high productivity] Size, Cohesiveness Social Loafing- The tendency for individuals to expend less effort when working collectively than when working individually; odd number groups do better than even; individual performance measures help minimize social loafing How to increase Group Cohesiveness: Make group smaller, encourage agreement on group goals, increase time spent together, increase status & perceived difficulty of group membership 3 Types of Conflict Task Conflict- what to do: positive at a lowmoderate level, Process Conflict (how to do it) positive at a low level, dysfunctn'l when increases time, role ambiguity, focus Relationship conflict (interpersonal) always dysfunctional Role- Conflict in Group Performance
Lower order needs: satisfied externally; Higher Order Needs: satisfied internally. Individuals must meet lower before they can satisfy higher; satisfied needs will no longer motivate; motivating a person depends on knowing at what level that person is on the hierarchy Theory X and Theory Y: Theory X: Assumption that employees dislike work, are lazy, dislike responsibility and must be coerced to perform Theory Y: Assumption that employees like work, are creative, seek responsibility, and can exercise self-direction. In these theories, motivation is maximized by participative decision making, interesting jobs and good group relations Herzberg's Theory
Presence ---------- Absence *Motivation factors are intrinsic- inside people and satisfiers. Hygiene factors are extrinsic- outside a person, and dissatisfies Hygiene factors: Quality of supervision, pay, company policies, physical working conditions, relations with others, job security Motivator factors: promotional opportunities, opportunities for personal growth, recognition, responsibility, achievement Eliminating dissatisifiers- may keep people from leaving, will not motivate them to work hard. To motivate people Emphasize factors associated with the work itself or to outcomes directly derived from it 3-Needs Theory: D. McClelland 1. Need for achievement (nAch)- drive to excel and succeed Motivators: concrete feedback, achievable standards, delineated roles and responsibilities 2. Need for power (nPow)- need to influence behavior of others Motivators: having an impact, impressing those in power, beating competitors 3. Need of affiliation (nAff) the desire for interpersonal relationships. Motivators: working with people they trust **Best
Linking Motivation Theories to Management Techniques: Employee Recognition Programsreinforcement theory, extrinsic motivator Employee Involvement Programs- Theory Y, Herzberg's twofactor theory, goal setting theory, job characteristics model, intrinsic motivator to Employee Involvement Programs: Increasing employee autonomy and control over work leads to increased motivation, productivity, job satisfaction, OCB to Employee Involvement Programs: Variable pay plans (Expectancy Theory, Reinforcement Theory) Skill-based pay plans (Needs Theory-nAch, Reinforcement Theory, Equity Theory) Flexible benefit plans- Expectancy Theory Implications for Managers: Recogn. individual differences, match ppl to jobs, use goals, esure that these are accepted, create jobs that offer skill variety, task identity or significance as well as autonomy/feedback, individualiz rewards-link these to performance, check the system for equity Key Themes from Theories: Motivating requires a relationship, True change/learning comes from inside a person, a change in a person is as much emotional as it is intellectual Make Their Day: intrinsic sources of recognition: come from within; appropriate job design, valued purpose, and trust; extrinsic: bonuses, new office; Extrinsic alone isn't enough because success is temporary: intrinsic comes from within so is tailored to needs Intrinsic Motivation at Work: Self management: commit to meaningful purpose, chose activities to accomplish, assess own competence, monitor progress towards goal; meaningfulness: provide non-cyclical environment, clearly identify passions, provide exciting vision, ensure task purposes; choice: delegate authority, demonstrate trust, provide security; competence: provide knowledge and positive feedback, recognize skill, manage challenge, and foster high, noncomparative standard, progress: build collaborative climate, track milestones, celebrate progress, provide access to customers Chapter 15GROUPS Five Stages of Group Devlopment Forming- harmony w/ similarities
5 Approaches to Conflict Management/ Which is best to use: 1. Competing-assertive, uncooperative. Use when: quick, decisive, vital and when don't trust opponent 2. Avoiding Unassertive, Uncooperative. When issue is trivial, to temporarily delay allow emotions to cool 3. Compromising Middle of everything when goals are important but not worth effort of more assertive approach 4. Collaborating assertive, cooperative. Use when concerns are too important to be compromised, when objective is to merge insights, gain commitment, when have the time 5. Accommodating- Unassertive, cooperative. Use when you find you are wrong, as a favor to build a relationship Ways to Manage Conflict: Focus on compromise/collaboration, shared goals requiring cooperation, expansion of resources, authoritative command, training, coaching, altering the structure-job redesign, transfers, coordinator positions Group Decision Making Advantages: Generate more complete info and knowledge, Generate more diverse alternatives, Increase acceptance of a solution, Increase legitimacy Disadvantages: Time consuming, minority domination-one can dominate others, Pressures to conform, ambiguous responsibility among members Groups v. Teams: Work groups have no need or opportunity to engage in collective work that requires joint effort while work
teams are groups whose members work intensely on a specific common goal using their positive synergy, individual and mutual accountability, and complementary skills. Teams have become popular because: 1. Outperform individuals on tasks requiring multiple skills judgment and experience. 2. Better utilization of employee talents 3.More flexible and responsive to changing events 4. Can be quickly assembled, deployed, refocused and disabled 5. Facilitate employee participation 6. Increase employee motivation Types of Teams: 1. ProblemSolving- teams from the same department or functional area who improve work activities or solve specific problems 2. Self-managed Work- operates without a manager and is responsible for a complete work process or segment 3. CrossFunctional- work team composed of individuals from various specialties 4. Virtual- team that uses technology to link physically dispersed members in order to achieve a common goal Characteristics of Effective Teams: Clear Goals, Relevant Skills, Mutual Trust, Unified Commitment, Good Communication, Negotiating Skills, Appropriate Leadership, Internal Support, External Support *When Teams Work BestQuestions team members should ask: Did we have a constructive conversation, Was the conversation productive enough to make a difference, did we understand and appreciate each other's perspective, Did we both commit to making improvements? Methods to maintain interpersonal relationships: Make strong commitment to group, tell why relationship is important, Tell others you're willing to work at relationship, optimize the other's safety, neutralize defensiveness by asking other to tell why they feel defensive, explain and echo each perspective, change one behavior, track mutual results *Fish! Reccs. For group cohesion: Make each moment count, fill w/ fun play in environment, make a difference to employees- energy and enthusiasm, choose your attitude, by creating a better work environment, employees feel like a team especially if play is allowed in everyday work Chapter 17 Leaders : innovate, develop, inspire, long-term view, ask what and why, originate, challenge status quo Management: Administer, maintain control, short-term view, how ask and when, imitate, accept status quo Trait Theories: theory that leaders possess specific characteristics- if true, leaders born, not made, people picked for leadership should have specific traits. Research shows: no universal traits predict leadership, traits do better job at predicting potential of leadership, traits don't predict leader effectiveness, traits give info on leadership strengths/ development needs, how much effort will be req'd to develop area Behavior Dual Nature of Leader Behavior: Initiating Structure (Ohio State) or Production Oriented (U of Mich.)organizes work, goals, task focused Consideration (OSU) or Employee Oriented (UM) - concerned for followers' comfort, well-being, status, and satisfaction; study results: OSUhigh on both categories = higher subordinate perform. and satisf. Exceptions: situational factors.UM: conclusions favor employee-oriented leaders Limitations of Behavioral Theories: no consistent relationships b/w leader behavior and group performance (limit ability to explain/ predict); missing consideration of situational factors. Contingency Theories: Attempt to isolate situational conditions and link to leadership style; Fiedler: Effective group perform depends on proper match b/w: leader's style of interacting w/ subordinates, and
situational factors (contingency dimensions); Assumptions: 1 leadership style will be most effective- leader style is fixed (either match leader to sit. or change sit.) Variables: Leader style (relationship vs. task), Situational factors: leader-member relations (confidence, trust, respect), task structure (structured v. un) position power (hire, fire, promote); task oriented leaders: best in high and low control situations; relationship leaders best in moderate control sit. Situational Leadership Theory: Hershey/ Blanchard- Successful leader provide leader style to match follower needs, recognizes role of followers in defining successful leader, assumes leader develops and uses diff. leader styles, widely popular, not much research support
Path-Goal Theory: Leaders used diff. styles depending on situation and needs of followers: Directive Leader (good for ambiguous tasks, high conflict, high external locus control) Supportive (good for structured tasks, bureaucratic firm,) Participative (high internal locus of control, asks members for input) Achievement-Oriented (sets challenge goals, expects high performance, high experience, good for ambiguous/ stressful tasks) Transactional Leaders: motivate followers by clarifying role/task requirements, 3 prev. theories involve trans. leaders. Transformational Leaders: Inspire followers to transcend own self-interests for good of organization, transform followers by force of personality Charismatic Leadership Theory: followers make attributions of heroic or extraordinary leadership abilities when observe certain behaviors: clearly articulated vision, personal risk, environmental sensitivity (needs/constraints), sensitivity to follower needs, unconventional behavior; correlation: charismatic leader and high performance/ satisf. among followers. To become charismatic: develop aura of charisma, maintain optimistic view, use passion, communicate w/whole body, create bond that inspires others, tap into follower emotions to bring out potential (motivation) Team Leadership: having patience to share info, trust others, give up authority, know when to intervene; Roles: external liaison, coach, conflict manager, troubleshooter Servant Leadership: inspiration for many current business experts (Covey, Blanchard, Zigarmi, DePree) leader philosophy for a # of companies (SW Air, Men's Wearhouse), 1st priority is service: putting others first (employee, customer, community) motivation of leader is need to serve others (provide team members w/support, remove barriers, nurture career dreams) Leadership: focuses on goal achievement, requires follower goal compatibility, focuses influence downward Power: capacity to produce effects on others, potential to influence; Used as means for achieving goals, requires follower dependency, used to gain lateral and upward influence Sources of Power: Formal Power: Legitimate- result of position, Coercive- punish or control, Personal Power: Reward: give positive benefits or rewards, Expert: influence leader can exert as result of expertise/ knowledge (motivated/ satisfied subordinates) Referent: arises because of person's desirable resources or admired personal traits (more motivated/ satisfied subordinat) Dependency: possession/ control of scarce resources makes manager powerful; Creates Dependency: importance/ scarcity/ nonsubstitutability of resource.
Ethical Leadership: personal values key determinants of how power exercised; ethical= high trust; leadership at high levels leads to trap of arrogance; look at means used to achieve goals, content of goals. Trust: components: Integrity (most critical)- honesty, truthfulness, Competence- technical, knowledge, Consistency- reliability, predictability, Loyalty- protect, Openness- willingness to be vulnerable, additional qualities for trust: Vision, Empathy; trust = leadership; Build Trust: practice openness, be fair, speak your feelings, tell truth, show consistency, fulfill promises, maintain confidences, demonstrate competence. Irrelevance of Leadership: Law of the Lid (org. can't get better than management's vision), accounts for 15% of org. success; Substitutes for leadership: follower characteristics: experience, training, need for independence, professional orientation; job characteristics: routine, unambiguous, satisfying jobs; organization charact.: explicit formalized goals, rigid rules, cohesive work groups Primal Leadership: resonant leader: attuned to people's feelings, move in positive emotional direction: comes naturally to EI leaders; dissonant leader: out of touch w/ people's feelings, alienate colleagues b/c lack well-developed personal and social competency skills; Traditional leadership training should be focused on intellectual and emotional learning: active participatory work, experiential learning and coaching, team-based simulations, mix o learning techniques It's All Politics: compared to Raven's taxonomy, power sources are similar are coercive power (persuasion), referent power (intuition and political insight), expert power (political insight); most important are expert and referent powers Chapter 18 Control monitoring activities, communicating priorities, progress and correcting sig. deviations. Design Control Systems Market Control: price competition and relative market share Bureaucratic Control: rules, regulations, procedures, and policies Clan Control: shared values, norms, traditions, rituals What we measure is more imp. than how we measure bc the wrong criteria can cause probs and what is measured what the org. will excel at. How managers control: Planning: are goals/plans on target? Actions needed to adjust Shaping behavior: Accountability (feedback on employee performance) Motivation (decrease ambiguity increase consistency) Protection: financial security, physical security (employees/customers/public) Measures of org. performance: (Efficiency) Output: sales revenue. Inputs: cost of resources; materials/labor. Personnel: turnover/absenteeism. (Quality/Effectiveness) Output: Defects/returns, on-time orders. Process: errors/rework, waste, safety. Personnel: satisfaction. Measures of financial control: (Financial/ratio analysis) liquidity, leverage, activity, profitability. (Budget analysis) planning and control tool, focus on +/- deviations in actual vs. budgeted costs or revenues. Types of Control
Feedforward is the most desirable type of control. Concurrent control = management by walking around, manager can correct problems as they happen. Feedback Control is the most popular type of control. (Drawbacks) by the time the manager has the info, the problem has already occurred-leading to waste or damage. (Advantages) provided managers with info on how effective their planning efforts were. Can enhance employee motivation. Balanced Scorecards: Identifies metrics (measures) to reflect progress towards org. goals. Helps orgs. prioritize nonfinancial targets/goals. Sets SMART
goals with specific targets and due dates Benchmarking: Standard of excellence, best practices among competitors or non competitors, identify and measure specific performance gaps and areas for improvements Continuous Quality Improvement: ongoing process to imp. quality of work processes, products, services. May start in response to metric deviation or idea/concern. Highly participative, focused on fixing process/systems, not people. Metrics may balance scorecard or be unitspecific to larger metric (MBO). Process Steps: Identify/Analyze-Plan-ActionEvaluation-Adjust action. Personnel Control: Attendance, work quality/quantity, interactions with others, felonies (theft, threat to safety, violence) Discipline process: 1.Verbal warning/redirect. 2. Written counseling copied to HR, includes plan for improvement with specific metrics and dates for evaluation. 3. Suspension/Termination. External Controls: Governmental monitoringindustry specific reporting requirements. Security and Exchange Commissionpublicly traded companies only, increased reporting/control requirements imposed by Sarbanes-Oxley Act. Banks/Lender/Investors Taking Managerial Action: 1.Doing nothingonly if deviation is judged to be insignificant. 2. Correcting actual (current) performance-immediate corrective action. (redirect vs. aversive) Investigative action to locate source of deviation 3.Revising the standard Strategy Focused Organization: control functions are important when aligning the org to the strategy: balanced scorecards; important in making strategy a continual process Treat People Right: 7 steps- attract and retain employees, hire employees with aligned values and goals, train and continuously develop employees, design work so it is meaningful and provides some degree of autonomy, adhere to specific mission so employees can understand where they are headed, reward employees, leadership that embodies trust, commitment, and success Operations Management Operations Management Strategy: Old thinking(post WWII)- success depends on micro-manage for efficient operations, New thinking(1990's and on)- consumers want customized products immediate, success depends on macro-managing; day-to-day management of tech. core: acquiring inputs, transforming inputs into outputs, distributing outputs, AKA Supply-Chain Management, field of management that: specializes in physical production of goods/ services, uses quantitative techniques for solving production problems, concerned with all activities that transform inputs into outputs Manufacturing Organization: Produce physical goods, inventoried for later consumption, quality measured directly, standardized output, capital intensive Service Organizations: produce nonphysical outputs, simultaneous production/ consumption, labor Operations Management: Both concerned with scheduling, obtain materials and supplies, concerned with quality and productivity Operations Management Decisions: strategy (translate mission/goals into supply chain objectives, eval. of cust. needs), product design (producibility, cost, quality, reliability), purchasing (req'd materials, correct design/quality, delivered when needed, minimize inventory costs: dilemma-ordering enough materials, but not high inventory costs), facilities layout (plan for production, throughput-speed which company turns raw mat. into distributed products/services; OPTIONS LAYOUT: process: produce similar goods grouped together; product: progressive steps in producing product; cellular: machines grouped into operations; fixed: product remains fixed, all comes to it), automation (technology: flexible manufacturing systems: prod. lines that quickly adapt; CAD: computer aided design, CAM: computer aided manufacturing, PLM: product-life cycle management), facility location (cost-
benefit analysis: labor climate, location of customers/ suppliers, traffic, observation: synergy from exist. tenets), capacity planning (planning to assure org. can produce products and services to match cust. demand: forecasting demand, identify bottleneck),Inventory: inventory management (finished goods, work-in-progress, and raw materials inventory; techniques: economic order quantity-designed to minimize total of ordering and holding costs, reorder point: most economical level at which inventory item should be reordered; material requirements planning and enterprise resource planning: dependent demand inventory system that schedules precise amount of all materials req'd to support production of desired end products; just-in-time inventory: schedules to arrive precisely when needed on production line), logistics/distribution: system approach to inventory (how much to hold, where to hold it), transportation (which mode, how much to ship), warehousing finished goods (how many warehouses, how big, where); this is where business strategy and customer satisfaction interact the most Lean Manufacturing: process using highly trained employees at every stage to cut waste and improve quality; flowencourage focus on rapid product flow, eliminating physical distances and barriers that add wasted time; pullcustomer demand pulls product through system, inventory is waste: be minimized, is a pull system Theory of Constraints: chain of many links, don't maximize individual links, max strength of chain, bottlenecks should never be idle or work on bad products; DrumBuffer-Rope: drum- overall output controlled by limited number of scarce resources, sets pace for production; buffer: materials or tasks waiting to be processed, placed before constraint in process to protect against uncertainty, always have work; placed at convergent/divergent/shipping points; Rope: comm process from constraint to support it, keeps buffers from getting too big, manages total work-in-progress based on customer demand (# of orders) and capacity of constraint: is a pull system Productivity: Identify system constraint: slowest sub-process, exploit system's most critical constraint: max output of constraint, increase quality of inputs, slow all to pace of constraint, subordinate all other activities to the needs of constraint, elevate systems constraints: find ways to increase capacity of constraint, repeat focus on new constraint Mass Customization: design-to-order concept: provides customers with product when, where, and how; makes heavy use of tech: developing flex manufacturing techniques and engages in continual dialogue with customers; benefits: creates relationship between firm and customer, providing loyalty-building value to the customer, garnering valuable market info for the firm Built to Change: leadership: sharedreplaces rigid hierarchies and spreads decision making across many people, supports more effective change management, human capital management: employing those individuals who are talented and willing to bring about change, commitment to development: skilled , willing to change, but may be slow while ind. learn new skills; travel light: hire talented individuals only when need them, let go when don't; problem that may not find talent when need it. Reward systems: bonuses; Dynamic Alignment: all pieces in designing/ creating value process are evolving in same direction and in support of strategic intent; requires effective communication means to get the instructions to each individual