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MGMT 371: Principles of Management
ManagementTest Three: Chapters 11, 12, 13, & 15
Notes
Chapter Eleven:
Learning Outcomes
11.1 Describe six key elements in organizational design.
11.2 Contrast mechanistic and organic structures.
11.3 Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.
11.4 Describe traditional organizational designs.
Chapter Notes
Exhibit 11-1 Purposes of Organizing
Divides work to be done into specific jobs and departments
Assigns tasks and responsibilities associated with individual jobs.
Coordinates diverse organizational tasks
Cluster jobs into units.
Establishes relationships among individuals, groups, and departments.
Establishes formal lines of authority.
Allocates and deploys organizational resources.
Exhibits 11-7 Centralization or Decentralization
More Centralization
1
Environment is stable
Lower-level managers are not as capable or experienced at making decisions as upper-level managers.
Lower-level managers do not want a say in decisions
Decisions are relatively minor
Organization is facing a crisis or the risk of company failure.
Company is large.
Effective implementation of company strategies depends on managers retaining say over what happens.
More Decentralization
Environment is complex, uncertain
Lower-level managers are capable and experienced at making decisions.
Lower-level managers want a voice in decisions
Decisions are significant
Corporate culture is open to allowing managers a say in what happens.
Company is geographically dispersed
Effective implantation of company strategies depends on managers having involvement and flexibility to make decisions.
Datapoints
2
24 percent of job seekers said they preferred to work at a company with more than 1,000 employees; 27 percent they preferred a company with fewer than 200 employees.
80 percent of a company’s total workforce is what typical; frontline managers directly supervise.
34 percent of HR executives said they had retained employees for new positions over the last six months.
68 percent of organizations said they’ve increased centralization in the last five years.
51 percent of white-collar workers say teleworking is a good idea.
42 percent of U.S. companies offer some form of telework arrangement.
55 percent of workers believe their work quality is perceived the same when working remotely as when working in the office.
Exhibits
Chapter Twelve:
Learning Outcomes
12.1 Describe contemporary organizational designs.
12.2 Discuss how organize for collaboration.
12.3 Explain flexible work arrangements used by organizations.
12.4 Discuss organizing issues associated with a contingent workforce.
12.5 Describe today’s organizational design challenges.
Chapter Notes
3
Exhibit 12-3 Benefits and Drawbacks of Collaborative Work
Benefits
Increased communication and coordination
Greater innovative output
Enhanced ability to address complex problems.
Sharing of information and best practices
Drawbacks
Potential interpersonal conflict
Different views and competing goals
Logistics of coordinating
Exhibit 12-4 Making Communities of Practice Work
Have top management support and set clear expectations.
Create an environment that will attract people and make them want to return for advice, conversation, and knowledge sharing.
Encourage regular meetings of the community, whether in person or online.
Establish regular communication among community members.
Focus on real problems and issues important to the organization.
Have clear accountability and managerial oversight.
Exhibit 12-5 Benefits and Drawbacks of Open Innovation
Benefit
4
Gives customers what they want – a voice
Allows organizations to respond to complex problems.
Nurtures internal and external relationships
Brings focus back to marketplace
Provides way to cope with rising costs and uncertainties of product development.
Drawback
High demands of imagining the process
Extensive support needed
Cultural challenges
Greater need for flexibility
Crucial changes required in how knowledge is controlled and challenged.
Datapoints
84 percent of employees who work remotely did so at least once a week
62 percent of workers want the option to telecommute.
67 percent of respondents said they want greater flexibility at work.
32 percent of orgnaizations have ad hoc alternative workplace programs such as mobil work, hoteling, and telecommuting.
69 percent of human resource consultants say that the use of a flexible workforce is a permanent change and not a temporary response to economic conditions.
5
48 percent of respondents to a survey say that compared with now, the office of 2021 will have disappeared and employees will work from wherever they are.
32 percent of workers say the biggest advantage of working from home is no commute.
50 percent if adults surveyed said they preferred a traditional 9 to 5 shift for their workday; 50 percent said they’d like some other option.
33 percent of employees say they often receive emails from their bosses during the weekend.
Chapter Thirteen
Learning Outcomes
13.1 Explain the importance of the human resource management process and the external influences that might affect that process.
13.2 Discuss the tasks associated with identifying and selecting competent employees.
13.3 Explain the different types of orientation and training.
13.4 Describe strategies for retaining component, high-performing employees.
13.5 Discuss contemporary issues in managing human resources.
Chapter Notes
Exhibit 13-1 High-Performance Work Practices
Self-managed teams
Decentralized decision-making
Training programs to develop knowledge, skills, and abilities
6
Flexible job assignments
Open Communication
Performance-based compensation
Staffing based on person-job and person-organization fit
Extensive employee involvement
Giving employees more control over decision making
Increasing employee access to information
Exhibit 13-2 HRM Process
Human Resource Planning
Derecruitment
Recruitment
Selection (Identify and select competent employees)
Orientation
Training (Provide employees with up-to-date skills and knowledge)
Performance Management
Compensation and benefits
Career Development (Retain competent and high-performing employees)
Datapoints
7
83 percent of companies cite a shortage of talent as their number one hiring challenge.
91 percent of recent college graduates say that if they started a job and didn’t like it, they would stay in that job for up to a year.
52 percent of HR professionals say they don’t use social networking sites to research job candidates.
85 percent of survey respondents said the top reason for why an employee should be terminated is sexually harassing a co-worker.
6.25 seconds is the time recruiters spend looking at a resume before deciding whether the candidate is a good fit for a job.
61 percent of workers surveyed say they’re never late for work.
15 percent of employers say they have fired a worker for calling in sick without a legitimate excuse.
36 percent of respondents say the top reason why someone hired would not work out in a position (other than poor performance) is a mismatched skill set.
39 percent of HR managers say that annual performance reviews are not an accurate appraisal of employees’ work
38 percent of senior managers say the most common mistake candidates make during job interviews is having little or no knowledge of the company.
82 percent of employees say they’ give up more than 5 percent of their salary to get a guaranteed retirement income.
Exhibit 13-3 Major HRM Laws
Equal Employment Opportunity and Discrimination
8
Equal Pay Act 1963
Prohibits pay differences for equal work based on gender
Civil Right Act, Title VII 1963 (amended in 1972)
Prohibits discrimination based on race, color, religion, national origin, or gender.
Age Discrimination in Employment Act 1967 (amended in 1978)
Prohibits discrimination against employees 40 years and older.
Vocational Rehabilitation Act 1973
Prohibits discrimination on the basis of physical or mental disabilities
Americans with Disabilities Act 1990
Prohibits discrimination against individuals who have disabilities or chronic illnesses; also requires reasonable accommodations for these individuals.
Compensation/Benefits
Worker Adjustment and Retraining Notification Act 1990
Requires employers with more than 100 employees to provide 60 days’ notice before a mass layoff or facility closing.
Family and Medical Leave Act 1993
Gives employees in organizations with 50 or more employees up to 12 weeks of unpaid leave each year for family or medical reasons.
9
Health Insurance Portability and Accountability Act 1996
Permits portability of employees’ insurance from one employer to another
Lilly Ledbetter Fair Pay Act 2009
Changes the statue of limitations on pay discrimination to 180 days from each paycheck
Patient Protection and Affordable Care Act 2010
Health care legislation that puts in place comprehensive health insurance reforms
Health/Safety
Occupational Safety and Health Act (OSHA) 1970
Establishes mandatory and health standards in organizations.
Privacy Act 1974
Gives employees the legal right to examine personnel files and letter of reference
Consolidated Omnibus Reconciliation Act (COBRA) 1985
Requires continued health coverage following termination (paid by employee)
Exhibits 13-4 Recruiting Sources
Internet
Advantages
Reaches large numbers of people
Can get immediate feedback
10
Disadvantages
Generates many unqualified candidates
Employee Referrals
Advantages
Knowledge about they organization provided by current employee
Can generate strong candidates because a good referral reflects on the recommender
Disadvantages
May not increase the diversity and mix of employees
Company Web Site
Advantages
Wide distribution
Can be targeted to specific groups
Disadvantages
Generates many unqualified candidates
College Recruiting
Advantages
Large centralized body of candidates
Disadvantages
Limited to entry-level positions
11
Professional Recruiting Organizations
Advantages
Good knowledge of industry challenges and requirements
Disadvantages
Little commitment to specific organization
Exhibit 13-5 Derecruitment Options
Firing: permanent involuntary termination
Layoffs: temporary involuntary termination; may last only a few days or extend to years
Attrition: Not filling openings created by voluntary resignations or normal retirements.
Transfers: Moving employees either laterally or downward; usually does not reduce costs but can reduce intraorganizational supply-demand imbalances
Reduced Workweeks: having employees, work fewer hours per week, share jobs, or perform their jobs on part-time basis
Early Retirements: providing incentives to older and more senior employees for retiring before their normal retirement date
Job Sharing: having employees, share one full-time position
Exhibit 13-7 Selection Tools
Application Forms
Almost universally used
Most useful for gathering information
12
Can predict job performance but not easy to create one that does
Written Tests
Must be job related
Include intelligence, aptitude, ability, personality, and interest tests
Are popular (e.g., personality test; aptitude tests)
Relatively good predictor for supervisory positions
Performance-Simulation Tests
Use actual job behaviors
Work sampling – test applicants on tasks associated with that job; appropriate for routine or standardized work
Assessment center – stimulate jobs; appropriate for evaluating managerial potential
Interviews
Almost universally used
Must know what can and cannot be asked
Can be useful for managerial positions
Background Investigations
Used for verifying application data – valuable source of information
Used for verifying reference checks – not a valuable source of information
Physical Examinations
13
Are for jobs that have certain physical requirements
Mostly used for insurance purposes
Exhibit 13-8 Types of Training
General
Communication skills, computer systems application and programming, customer service, executive development, management skills and development, personal growth, sales, supervisory skills, and technological skills and knowledge
Specific
Basic life—work skills, creativity, customer education, diversity/cultural awareness, remedial writing, managing change, leadership, product knowledge, public speaking/presentation skills, safety, ethics, sexual harassment, team building, wellness, and others
Exhibit 13-9 Traditional Training Methods
On the job: employees learn how to do tasks simply by performing them, usually after an initial introduction to the task
Job Rotation: employees work at different jobs in a particular area, getting exposure to a variety of tasks.
Mentoring and Coaching: Employees work with an experienced worker who provides information, support, and encouragement; also called apprenticeships in certain industries.
Experiential Exercises: employees participate in role playing, simulations, or other face-to-face types of training
14
Workbooks/Manuals: employees refer to training workbooks and manuals for information
Classroom Lectures: employees attend lectures designed to convey specific information
Technology-Based Training Methods
CD-ROM/DVD/Videotapes/Audiotapes/Podcasts: Employees listen to or watch selected media that convey information or demonstrate certain techniques.
Videoconferencing/Teleconferencing/Satellite TV: employees listen to or participate as information is conveyed or techniques demonstrated
E-Learning: Internet-based learning where employees participate in multimedia simulations or other interactive modules.
Mobile Learning: learning delivered via mobile devices
Exhibit 13-10 Performance Appraisal Methods
Written Essay
Evaluator writes a description of employee’s strengths and weaknesses, past performance, and potential; provide suggestions for improvement.
+Simple to use
-- May be better measure of evaluator’s writing ability than of employee’s actual performance
Critical Incident
Evaluator focuses on critical behaviors that separate effective and ineffective performance.
15
+ Rich examples, behaviorally based
-- Time-consuming, lacks quantification
Graphic Rating Scale
Popular method that lists a set of performance factors and an incremental scale; evaluator goes down the list and rates employee on each factor
+ Provides quantitative data; not time-consuming
-- Doesn’t provide in-depth information on job behavior
BARS (Behaviorally Anchored Rating Scale)
Popular approach that combines elements from critical incident and graphic rating scale; evaluator uses a rating scale, but items are examples of actual job behaviors.
+ Focuses on specific and measurable job behaviors
-- Time-consuming; difficult to develop
Multiperson Comparison
Employees are rated in comparison to others in work group
+ Compares employees with one another
-- Difficult with large number of employees; legal concerns
MBO
Employees are evaluated on how well they accomplish specific goals
+ Focuses on goals; results oriented
-- Time-consuming
16
360-Degree Appraisal
Utilizes feedback from supervisors, employees, and coworkers
+ Thorough
-- Time-consuming
Exhibit 13-11 What Determines Pay and Benefits
Level of Compensation and Benefits
Kind of Job Performance
Does job require high levels of skills?
Kind of Business
What industry is job in?
Unionization
Is business unionized?
Labor or Capital Intensive
Is business labor or capital intensive?
Management Philosophy
What is management philosophy toward pay?
Geographical Location
Where is organization located?
Company Profitability
How profitable is the business?
Size of Company
17
How large is the organization?
Employee’s Tenure and Performance
How long has employee been with organization and how has he or she performed?
Exhibit 13-12 Tips for Managing Downsizing
Treat everyone with respect
Communicate openly and honestly:
Inform those being let go as soon as possible
Tell surviving employees the new goals and expectations
Explain impact of layoffs
Follow any laws regulating severance pay or benefits
Provide support/counseling form surviving (remaining) employees
Reassign roles according to individuals’ talents and backgrounds
Focus on boosting morale:
Offer individualized reassurance
Continue to communicate, especially one-on-one
Remain involved and available
Have a plan for the empty office spaces/cubicles so it isn’t so depressing for surviving employees.
Chapter Fifteen
Learning Outcomes
18
15.1 Identify the focus and goals of individual behavior within organizations.
15.2 Explain the role that attitudes play in job performance.
15.3 Describe different personality theories.
15.4 Describe perception and factors that influence it.
15.5 Discuss learning theories and their relevance in shaping behavior.
15.6 Discuss contemporary issues in organizational behavior.
Chapter Notes
Exhibit 15-1 Organization as Iceberg
Visible Aspects
Strategies
Objectives
Policies and Procedures
Structure
Technology
Formal Authority
Chain of Command
Hidden Aspects
Attitudes
Perceptions
Group Norms
19
Informal Interactions
Interpersonal and Intergroup Conflicts
Exhibit 15-2 Sample Employee Attitude Survey
Here are some sample statements from an employee attitude survey:
I have ample opportunities to use my skills/abilities in my job.
My manager has a good relationship with my work group.
My organization provides me professional development opportunities.
I am told if I’m doing good work or not.
I feel safe in my work environment.
My organization is a great place to work.
Exhibit 15-3 Examples of MBTI Personality Types
I-S-F-P (Introversion, Sensing, Feeling, Perceiving)
Sensitive, kind, modest, shy, and quietly friendly. Such people strongly dislike disagreements and will avoid them. They are loyal followers and quite often are relaxed about getting things done.
E-N-T-J (Extraversion, Intuition, Thinking, Judging)
Warm, friendly, candid, and decisive; also skilled in anything that requires reasoning and intelligent talk, but may sometimes overestimate what they are capable of doing.
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Data points
60 percent of workers are dissatisfied with their job; however, 70 percent of those unhappy employees plan to stay put.
62 percent of older workers say they were happiest in their career at some time in the past.
50 percent of college students say the longest they can go without using digital technology is up to 30 minutes.
29 percent of employees are inspired by or engaged with their job.
59 percent of employers say they’re very loyal to their employees; only 32 percent of employees feel their employer is loyal to them.
79 percent of chief financial officers say a sense of humor is important in the workplace.
80 percent of campus recruiters say students’ ways of communicating are too casual for the recruiting process.
41 percent of Millenials (and only 30 percent of baby boomers) agree or strongly agree that employers should do what their manager tells them, even when they can’t see the reason for it.
48 percent of workers say being courteous to coworkers helps with career advancement.
71 percent of adults say flip-flops are inappropriate for the workplace.
41 percent of chief financial officers said the most annoying coworker behavior is sloppy work.
Exhibit 15-4 Holland’s Personality – Job Fit
21
Type
Personality Characteristics
Sample Occupations
Realistic. Prefers physical activities that require skill, strength, and coordination.
Shy, genuine, persistent, stable, conforming, and practical
Mechanic, drill press operator, assembly-line worker, farmer
Investigative. Prefers activities involving thinking, organizing, and understanding.
Analytical, original, curious, independent
Biologist, economist, mathematician, news reporter
Social. Prefers activities that involve helping and developing others.
Sociable, friendly, cooperative, understanding
Social worker, teacher, counselor, clinical psychologist
Conventional. Prefers rule-regulated, orderly, an unambiguous activities.
Conforming, efficient, practical, unimaginative, inflexible
Accountant, corporate manager, bank teller, file clerk
Enterprising. Prefers verbal activities that offer opportunities to influence others and attain power.
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Self-confident, ambitious, energetic, domineering
Lawyer, real estate agent, public relations specialist, small business manager
Artistic. Prefers ambiguous and unsystematic activities that allow creative expression.
Imaginative, disorderly, idealistic, emotional, impractical
Painter, Musician, Writer, Interior, decorator
Exhibit 15-5 What do you see?
Old woman or young woman?
A knight on a horse?
Exhibit 15-6 Attribution Theory
Observation
Interpretation
Attribution of Cause
Does person behave this way in other situation?
Yes: High Distinctiveness
Internal Attribution
No: Low Consistency
External Distinctiveness
Do other people behave the same way in similar situations?
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Yes: High Consensus
External Attribution
No: Low Consensus
Internal Attribution
Does person behave this way consistently?
Yes: High Consistency
Internal Attribution
No: Low Consistency
External Attribution
24