Exam 2 COM 105 3/19/13 12:43 PM

Chapter 5-9

CHAPTER 5

Decision Leadership in groups

Ways groups make decisions:

1. Consensus

Consensus: uncontested support for a decision by all members involved in

process

Unanimous (everyone agrees upon it) consensus (jury)

o Benefit: little to no conflict in the implementation process

o Challenge is that it takes a very long time to reach absolute

consensus. Recall the conflicts you have experienced in group

projects

Majority consensus (natural resource conflicts or politics)

False consensus: when groups are silenced from pressure to not

contest a decision

2. Majority rule

Process of voting for or against the various alternatives

Followed by almost all political bodies

Principle benefits:

o Equal voice (one person- one vote)

Facilitates moving decisions forward (“give it an up or

down” vote)

Principal drawback

o The process does not encourage innovation

Consensus forces people to work together to find

solutions which address all concerns

3. Minority Rule

Occurs when a small group within a group make the decision

There are two types:

o Minority rule in decision : when a small group decides for the`

group

o Minority veto : when a small group effectively stops a decision

from being made

Often to maintain the status quo by blockading a

discussion for change

Often this is accomplished through generalizations and

assessment of alternatives based upon shifting criteria

4. Expert opinion

Decisions are driven by technical or specialized knowledge in a particular

area

Principal benefit: most technically sound option is chosen

Principal drawbacks

o Problems are defined in a narrowly technical way and other

voices/ interests are systematically shut out

o Expert opinion decisions are NOT democratic

5. Authority Rule

Occurs when the person primarily responsible for organizational

management and possessing decision authority chooses among available

options

Principal benefits

o Efficiency (democracy is slow and unified command is fast)

o Responsibility for decision clearly lies with a person

Principal drawback: person making decision is likely NOT the most

technically knowledgeable

o Ex: us president and congress are ultimately responsible for

decisions concerning natural disasters, complex technology

choices and economic poly; yet lots of people have a more

technical qualifications than they do

Leadership Attributes

What Leadership Does:

Helps people make sense or understand something in a particular way.

Makes sense of circumstances and gets people to see them in alternative

(hopefully, better) ways.

In sum: Leadership is _____________.

This involves:

1 – understanding various leadership styles

2 – organizational vision , mission structure and image

Organizational Leadership Styles:

Black and mouton model ^

Leadership Concerns:

Concern for task: degree of concern for the function of the organization

Ex: getting the morning paper printed and delivered, filling a shoe

order out the door on time

In extremes: this person is an authoritarian manager with little

focus on shared vision

Concern for People: Degree of concern for people that organization is

fulfilling

Examples: boss who wants to friend employees

Leadership Style:

Impoverished: indifferent to both people and organizational mission

Going through the motions but not really committed to organization,

its future, the development of its people or resources

Country club: focused mostly on people dynamics and making employees/

followers feel good about work at the cost of productivity. Want everyone to

be happy

Authoritarian: leadership may perform well on technical and strategic

accomplishments but most often at the cost of people and relationships.

Sweatshop

Team leader or democratic : ongoing balance of task and people

concerns. Tends to work with people and manage a collaborative

process.

We must adapt leadership style to fit with followership and context

characteristics

Impoverished: indifferent to both people and organizational mission. You

aren’t helping anyone

what is the locus of leadership?

o Locus: the intersection follower characteristics, situation

characteristics and leadership characteristics

Superstar leader

Adapting for Islamic cultures: http://www.youtube.com/watch?

v=BNwpL3z6wZU&feature=related

Adapting for Indigenous cultures in America: http://www.youtube.com/watch?

v=ts8JXuMN0Q4

Leadership Mission and Vision:

The tools of Innovative leadership:

Envisioned Future

Convictions

Mission

Integration of Mission and Structure

Stakeholder Management

Leadership Mission and Vision

Map of Innovative Leadership:

External leadership and internal leadership should have an arrow running

back and fourth in a circle between each other

Envisioned Future:

A Clearly Envisioned Future:

A vivid description of what you see in the future for your team in five, ten or

more years in the future.

Visionary Leadership involves

Describing your IDEAL workplace (social movement, political

structure, etc)

Thinking beyond what is take-for-granted or assumed today

Cultivating support (shared vision) among leaders and followers

Willingness to resist and experience resistance

A Clearly Envisioned Future:

Ex: Martin Luther King’s “I have a Dream speech”

Future Vision

Organizational Mission

External Leadership

Public Image

Image Campaigns

Internal Leadership

Organizational Structure & Culture

Strategic Objectives

Convictions

Convictions:

Convictions are a commitment or certainty (not necessarily total!) to

principled action.

Doing what you feel is right.

Doing now what you see as leading to a different and better future

state.

Cultivating a shared commitment among key players

Conviction: Behavior

Continuous Learning: Actively engage View work and life as an ongoing

"learning program", and then we can continue to learn from almost

everything in life.

Integrity: Matching statements and behaviors? Doing what is right.

Organizational Mission

Organizational Mission:

Mission states, in 1-2 sentences, why your company (or group, team, social

movement, et cetera) exists.

Vision is the overall picture of where we are headed

Conviction is a commitment to principled action getting us to vision

Purpose or mission is a more concrete description of who we are

and what we are doing

Also known as the mission statement (?)

Mission-Slogan-Strategic Objectives:

Mission: short description of why we exist (our purpose) -- Why we exist

Slogan: public messages to represent organizational mission to public – Who

we are

Strategic Objectives: specific action items (things we do) to accomplish and

fulfill our mission. - What we are doing

Mission:

Benefits of Strong Mission:

Guides strategic Planning

Clarifies decision making

(Should!) establish priorities and work practices

Boeing Vision Statement:

The Boeing Vision is: People working together as a global enterprise for

aerospace leadership. How will we get there?

Run healthy core businesses

Leverage our strengths into new products and services

Open new frontiers

In order to realize our vision, we consider where we are today and where we

would like to be tomorrow. There are certain business imperatives on which

Boeing places a very strong emphasis.

Detailed customer knowledge and focus that understand, anticipate

and respond to customer needs.

Large-scale systems integration that continually develops and

advances technical excellence.

A lean enterprise characterized by efficiency, supplier management,

short cycle times, high quality and low transaction costs.

Aribus Vision Statement:

Airbus is a high-performance environment. But performance isn’t only

about what you achieve: it’s also about how you achieve it.

That’s why we have ‘theAirbusway’. A set of guiding principles that

underpin a fully integrated company where all people share common

values, behaviors and ways of working.

All Airbus employees strive to live ‘theAirbusway’. But this does not

mean that everyone should be exactly the same. Far from it. We

encourage individuality. We embrace diversity. We want people to

bring their own style and contribute to the richness of our organization.

Drawn from more than 80 different nationalities, Airbus employees

have drive, dynamism and creativity, plus an ability to transcend

geographical and professional boundaries to work together on cutting-

edge projects.

Airbus is proof that great things happen when individuals from

different backgrounds and with different skill sets co-operate to tackle

and overcome the most challenging of obstacles.

Setting Strategic Objectives:

Conceivable

We need to perceive that the vision is possible

Achievable

We need to see how the conceivable vision can be accomplished

Measurable

We need measurable outcomes to tell if we are getting closer to the

vision

Significant

Controllable

We need to know what we do and do not control and know that we

control enough to accomplish vision

Challenging

Overall vision should push us but we also need to see progress

toward end goal

Conflict:

What is interpersonal Conflict?

Conflict occurs when people differ in:

Perspective

Interests

Values

Beliefs

Conflict is an expected part of life yet effective management of conflict is

complex and can involve specialized training and a lot of experience

Destructive Conflict

What is it?

Focused on winning argument

Shows lack of respect for others

Emphasizes People over Problem

Negatively expresses emotion

Wastes time

Produces poor decisions

Results:

Feelings of anger, frustration

Getting Even

Parties not having needs met

Decreased self confidence

Incomplete tasks

Decreased team performance

E.g. anger and raised voices

Constructive Conflict:

What is it?

Emphasizes task completion and problem solving

Emphasizes relationships

o Keeps people and problems separate

Listen first, talk second

Set out objectives

Explore options together

Leads to:

Win-win solutions

Open and honest communication

Needs of both parties being met

Resolution of conflict

Improved team performance

E.g. remaining calm in angry conflicts

Cliché: “Two heads are better than one”

Caveat: True IF they are collaborating not clashing

65% of performance problems result from strained relationships.

It doesn’t have to be this way!

Conflict Grid:

Styles of Conflict:

Competing style

Concerned only or primarily for one’s own needs and is willing to

engage others only to the degree they serve self interests

Avoiding style

Simply wants to be left alone and is not interested in either their

own or other’s interests

Accommodating style

Willing to sacrifice one’s own interests for the interests of others

Collaborating style

Has high concern for both one’s own interest and the interests of

others

Compromise style

Sees the need to operate as a middle-ground on all levels: a

genuine interest in competing and cooperating for both one’s own

and others’ interests

Chapter 6

Successful Meetings

Preparation and Follow through

Agenda:

Criteria for meeting or not meeting

Preparation

Wrap Up

Follow-through

This meeting was pointless!

Rules to decide about meeting or not meeting

Do not hold a meeting if….

The meeting is for simple information transfer and can be

disseminated through written memoranda or other one-way

medium

The leader/boss is not willing to actually incorporate the feedback

participants provide

Member absences will undermine the objective of the meeting

Do hold a meeting

There is a genuine need and benefit for meeting

The ‘decision’ has truly not been made

Participant input will actually impact the decision

Preparation

1st rule: What is the purpose of the meeting?

Every meeting should produce decision and action plans

What is the ‘history of the future?’

Learning from the pasts’ experiences, results etc. and figuring out

what worked and what didn’t in order to move forward with a vision

Planning future actions based on past mistakes

Figure out where you will be in the future, and action plans to get

there (back scheduling)

What is ‘armchair’ testing and under what circumstances do you use it? (look

it up)

The tendency of wanted everyone to participate in everything

Too many people in the room stifles creativity

Wrap up

Avoid the endless meaning syndrome

Solution?

o Set a time frame

How about adapting?

The end of the meeting should lead to people performing their action steps

outside the meeting

To do this it is necessary to establish who is doing what at the end

of the meeting

Meeting success is like if we establish plan for the next one (What’s on the

next piece?)

Follow-through:

Recorder needs to quickly summarize meeting in a one page to document

the key discussion areas, decisions, and action steps.

Make sure assignments are completed by agreed-upon deadlines.

Ideally, meeting follow-through should couple seamlessly into the

preparation stage for next meeting.

CHAPTER 7

Managing organizational structure:

Managing organizational communication

Avon case: A managers Challenge:

CEO experiencing failing global sales

Problem: Global expansion= too munch autonomy

AVON’s global organizational hierarchy exploded

o 7 levels to 15 levels of managers increased in a decade

Solution: Solve the crisis

o Restructure Avon’s organizational hierarchy

o Lay off thousands of global managers

o Used expert managers to examine functional activities

What they found: duplication of marketing efforts in

other countries was source of high costs

Organizational structure:

Organizational Architecture: combination of organizational structure, culture,

control system and human resource management that determine the use of

organizational resources.

Organizational Structure: A formal system of task and job reporting

relationships that determines how employees use resources and achieve

organizational goals.

Organizational Design: the process of using organizational structure and

culture to fulfill organizational mission

Challenges: Create an architecture that

Motivates managers and employees to work hard and develop

supportive job practices

Coordinate the actions of employees, groups, functions and

divisions to ensure overall organization is efficient and effective

What is the best organizational design?

There is no one best way to design an organization: design reflects

each organization’s specific situation

FOUR factors are important determinants of the type of

organizational structure:

o The nature of the organizational environment

o Type of strategy the organization pursues

o Technology the organization uses

o Characteristics of the organization’s human resources

Factors Affecting Organizational Structure:

Organizational Structure and Environment:

Organizational environment= turbulence and change

= the factors ‘external’ to and impacting organizational functioning

Political economic

Socio-cultural

Environmental

National/local celebrations

Weather

Act….

Organizational structure:

Traditional theory: mostly views org environment as a non-issue because

focus was/is placed on internal management of the machine

System theory: is especially interested in connection between internal and

external processes

Ex: foot and mouth disease

Organizational design must fit org environment. Examples:

You must be able to move as quickly as your environment does (be

adaptable!)

Bureaucracies work well in stable environments: ex food and

automobile manufacturing plans where market demands changed

slowly over time

Matrixes work well in project based organizations: ex consulting or

training firms: driven by client demand

Networks work well is emergent and grassroots contexts where org

mission and function are intentionally responsive to member

practices: think local community garden, environmental

organization, community food program or digitally-based

organization

Organizational Structure: Strategy

Strategy: the way different units are coordinated in accomplishing

organizational mission

Centralized strategy : means org decisions are made by a central

unit and other units must follow those procedures. This would

accompanied by rigid bureaucracy

Differentiation strategy : for example, allow units to deviate from

central products or process. This would be accompanied by some

sort of adaptive structure like a matrix

Org structure: technology

Technical knowledge, skills and machines that enables org to fulfill its

missions: distribution of goods and services

Task Variability = the number of new or unexpected problems that a

person or function experiences in performing tasks

Task Analyzability = the degree to which programmed solutions can

be put in place to solve/manage these problems

Which industries or sectors tend to run into low versus high variability

problems?

Organizational structure: human resources:

Human resources: the management of work tasks and focus of employees

Think about the difference of a forewomen watching closely over

the actions of temporary employees in a factors setting versus a lab

technician working largely unsupervised

High skill area : decentralized and autonomy from human resource

management. Low skill area= centralized and dependent of human

resource management

Lows skill area : centralized and dependent on human resource

management

Grouping tasks into jobs:

Job design: process by which managers decide how to divide tasks into

specific jobs

Ex: McDonalds managers and the division of labor, tasks related to

chiefs and tasks related to giving food to the customer

Job simplification: process of reducing the number of tasks that each worker

performs

Can reduce efficiency and workers can become demotivated and

unhappy= performing at a low level

Job enlargement: increasing the number of different tasks in a given job by

changing the division of labor

Increasing the range of tasks performing by a worker will reduce

boredom (at subway they make the food and serve it)

Job enrichment: increasing the degree of responsibility a worker has over his

or her job

Empowering workers to experiment to find new ways to do the job

Encouraging workers to develop new skills

Allow workers to respond to unexpected situations

Allow workers to monitor and measure their own performance

Job Characteristics Model:

5 characteristics that determine job motivation:

Skill variety

Task

Task

Five Job characteristics affect an employee’s motivation because they affect

three critical psychological states. If employees feel their work is meaningful

they will be more motivated (Hackman and Oldham)

Types of organizational structure:

Functional Structure : is driven by the principal functions of an

organization to complete is mission

o Each functional areas includes more specific task department:

Human resources includes payroll and benefits

Planning includes credit services and marketing

Functional areas, business college

Public relations

*add figure 10.3 for pier 1 imports

Befits of functional structure

o Learning and specialization from working closely with people

with similar skill sets

o Easier and more precise supervision

o Easier monitoring and more responsive changes in the

environments of those function areas

Negatives

Less effective as organization expands

Narrow focus on management of departments and less attention on

‘grand mission’ of organization

Divisional structure: Organizes task areas/ units/ departments by

specialization, market or geography

Creates smaller, more manageable and responsive units that focus

on a particular product line, problem, areas and so forth

Most managers of large organizations choose a divisional structure

to create business units

*insert figure 10.4 product market and geographic structure

Product structure: each product line or business is handled by a self-

contained divisions

Benefits of Product Structure:

Allows functions managers to focus on one product line

Division heads/ leads become more expert in their particular

industry or market niche

Division heads are freed from micro-managing and maintain an

organization-wide view o activities and mission

Negatives of Product Structure

Creates an additional layer of management – and there could be

issues of mission associated with the division.

Geographic Structure:

_______ Structure: in which each region of a country or area of the world is

served by a self-contained division

Department stores use geographic structure because needs of retail

customers differ by region

o Global ___________ structure: managers locate different

divisions in each of the world regions where the organization

operates

o Global ___________ structure: each product division, not the

country and regional managers, takes responsibility for

deciding where to manufacture its products and how to

market them in countries worldwide

Market Structure:

Market Structure: _______

Lets managers be responsive to the needs of their customers

(flexibility in decision making and response to customers)

Types of Organizational Structure:

Matrix Structure à functional employees and tasks being organized

simultaneously into (a) functional areas, and (b) product (or other) division.

Functions: allow them to learn from one another and become more

skilled and productive

Product teams: members of different functions work together to

develop a specific product

o Each person reports to two manager: (team members known

as two-boss employees)

Functional boss: who assigns individuals to a team and

evaluates their performance from a functional

perspective

Boss of the product team: evaluates performance on the

team

Types of organizational structure:

Matrix organization function and product team combined

Functional employees and tasks being organized simultaneously into

functions areas and product (or other) division

Functions: allows them to learn from one another and become more

skilled and productive

Product team: members of different functions work together to

develop a specific product

o Each person reports to two managers (team members known

as two boss employees)

Functional boss: who assigns individual to a team and

evaluates their performance from a functional

perspective

Boss of the product team: evaluates performance on the

team

Product team structure:

Product team structure: in which employees are permanently assigned to a

cross-functional team and report only to the product team manager or to one

of his or her direct subordinates

Cross-functional team: ____________________________________________

Organizational Structure: Allocating Authority:

Hierarchy of Authority: (_________________) organizations chain of

command, specifying the relative authority of each manager

___________: the number of subordinates who report directly to a

manager

Tallness/flatness of Hierarchy: can be literally counted from top-bottom

When organization grows its hierarchy of authority lengthens= taller

Tall organizational: _________ levels of authority relative to company

size

Flat organizational:__________levels relative to company size

When organizations become taller:_______________________________

Chain of command: Choosing who is on your team

Chain of Command at “The office”

Organizational Structure:

Organizational Culture : shared set of beliefs, expectations, values, and

norms that influence how members of an organization work together

Internalized by employees/members

Values identify (explicitly or implicitly) what is / in not good (shared

standards that members use to evaluate)

Norms prescribe behavior (prescribe shared beliefs, attitudes, and

behaviors). Ideally helps company achieve values

o Over time members of a company learn from one another

how to perceive and interpret various events that happen in

the work setting

Types of Organizational Structure:

Organizational Culture, Where does it come from?

Organizational culture shaped by the interaction of four main factors:

The personal and professional characteristics of people within org

Organizational ethics

Nature of the employment relationship

Design of its organizational structure

Org Members: companies (intentionally) attract people with certain values

and norms. Put them together and there is an additive effect. When

organizations members become too similar over time they lose their ability

to adapt to changes in the environment

Organizational Ethics: the moral values, beliefs, and rules that establish

the appropriate way for an organization and its members to deal with each

other and with people outside the organization. Ethical values become an

important part of an organizations structure

Employment relationship and human resource practices impacts org

culture (seasonal, temporary, full time. High/low turn-over. Career/job

minded. Promotion from within or hiring ‘best in field’)

Org structure determines who talks to whom à org culture. Tall versus

short org’s à different org cultures

How managers work to influence these four factors determines whether an

organization’s culture is strong and adaptive or is inert and difficult to

change

Organizational culture:

Org culture: shared set of beliefs, expectations, values, and norms that

influence how members of organization work together

Internatlized by employees/j members

Values identify (explicitly or implicitly) what is/ in not good (shared

standards that members use to evaluate)

Norms prescribe behavior (prescribe shared beliefs, attitudes, and

behaviors) ideally helps company achieve values

o Over time memebers of a company learn from one another

how to perceive and interpret various events that happen in

the works setting

Org culture, where dies it come from?

Organizational culture shaped by the interaction of four main factors (norms

based on the organization)

The personal and professional character

Org members:

Organizational ethics

Employment relationship

Org structure

Strong/ weak cultures

Adaptive cultures are organizational who’s employees build momentum to

grow and change as needed to achieve goals

Basically you stay with the same company because you grow with the

company

Inert cultures are org’s who’s values and norms fail to motivate

Short-term employment according org needs, minimal investment in

employees. Performance is not clearly tied to reward -> social/task

loafing

Three building blocks of organizational culture on YouTube… im too drunk for

this

Consistency between what you do and what you say

Behavior

Symbols

Systems: the process you put to make a difference

Symbols and systems

CHAPTER 8

5 Simple Steps to Build a Winning Corporate Culture:

Winning culture v:

Defined by simple words (easy to explain and understand)

Leader’s words are aligned with actions

Emphasizes three areas

Serving the customer

Growing the business

Developing employees

Losing culture:

Confusing and complex

Places customer needs behind those of the company

Emphasizes personal gain over team achievement

Enron: (1985-2001)

Based in Huston, Texas

Industry- energy, commodities, and services

Culture:

Maximize share value

Aggressive partnership hiding debt

Supporting the myth of its own invulnerability

Arrogant

5 steps to create/redefine corporate culture:

1. Define 3-4 guiding principles that define who you are as an organization

2. Use the principles to guide every business discussion and decision

Words are meaningless unless they spur new behavior

Use guiding principles to guide discussion and decisions

3. Build the principles into all your people performance and management

systems

Make sure that your people and performance management systems

measure rewards behaviors consistent with guiding principles

4. Create a 2-3 day leadership development experience that reinforces the

behavior and values consistent with the principles, and insist all senior

leaders attend.

You need to constantly reinforce words with action

Create an experience based leadership development program that

reinforces the values and behaviors consistent with guiding

principles

5. Expect resistance, bust stay the course with passion and patience

Expect some cynicism at first

CHAPTER 9

The Collaborative Organizations: How to make employee networks really

work

The Leading Question:

How can companies build more collaborative and innovative organizations?

Executives should analyze ________________________to discover how

high-performing individuals and teams connect

Networks should be designed to optimize

_______________________________, distance, and technical specialty

Network analysis can show where__________________________slows

decision making

DID WE GO OVER THIS POWERPOINT??

CHAPTER 10

Risk and Crisis Communication

Environmental hazards/risks we face:

Snow

Ice

Water quality

Food diseases

Chemicals in the food

GMO’s

Storm water

Risk and Perceived Risk:

Storm-water's damage to Puget Sound huge, report says2

Every year, Puget Sound suffers an oil spill equal to more than half an Exxon

Valdez. It just happens drop by drop.

By Warren Cornwall

Seattle Times environment reporter

Every year, Puget Sound suffers an oil spill equal to more than half an Exxon

Valdez. It just happens drop by drop.

Storm-water from roads, parking lots and elsewhere carries between 6.3

million and 8 million gallons of petroleum into the Sound every year,

according to a report issued Friday by the state Department of Ecology. The

1989 Valdez accident in Alaska dumped 11 million gallons.

And the flow into Puget Sound dwarfs the amount of oil that comes from

accidental spills, which add up to 270,000 to 340,000 gallons each year.

The findings of the new report underscore a long-standing problem of

stormwater pollution as a push to clean up Puget Sound gets under way. It

also shows the difficulty of corralling contamination that comes from the

region's pavement and storm drains, instead of pipes from a handful of

factories.

There is a different between hazard and our assessment of hazard

The Hazard-Outrage Model:

Risk Case= Hazard + outrage

Hazard:

The actual event future,

Future, eminent or already occurred

Low to catastrophic

Outrage:

Emotions and behaviors of audience

Perceptions of hazard

Range from apathy to rage

Risk / advocacy Communication:

Audience is uninterested/ inattentive

Challenging, advocacy communications because there is a problem but no

one is paying attention

Must assess what audience already cares about and use this to persuade

toward outcome

Ex: pre-storm warnings such as Hurricane Katrina

High risk low outrage… not showing up to class on Fridays

Stake holder Relations:

Audience is Attentive and Engaged

Easiest communication situation

Must remain as transparent and honest as possible

Collaborative / consensus building

Group interaction and management

Ex: Water resource management, natural resource planning

processes

Outrage management:

Audience is very engaged and often negatively and likely at you!

Most challenging communication context – NO trust of you or your motives

but believe their situation is dire

Listen and perhaps apologize if that enables more realistic perception

Ex: Small oil spill coinciding with Exxon Valdex

Crisis communication (high hazard/ high concern)

Audience very Engaged and attentive

Reaction to actual event

Outrage ≠ Anger; Outrage = Concern

Communicator needs to listen to concerns and show empathy AND

demonstrate leadership in managing incident and moving forward

o Ex: any natural disaster, airline crash, act of terrorism,

financial meltdown

Risk Communication:

Risk communication is

Spin

Brainwashing

A genuine effort to enable lay people to make informing decision

about something

Risk & Perceptions:

If ‘risk communication’ is intended to inform, we need to understand what

people already know and think so that information is offered in frames

corresponding with preexisting perceptions

Perception of Radon:

Step 1: Rank order the following risks in terms of ‘deaths per year.’

Drowning

Drunk Driving

Home Fire

Falling in Home

Radon

Radon

Drunk driving

Falls in home

Drowning

Home fire

If risk is _________, information is a tool.

Reasons we estimate incorrectly:

ANCHORING BIAS:

An ‘anchor’ is information about related risks. Direct estimates were

influenced by the anchor given.

Subjects told that 50,000 people die from auto accidents produced

estimates two to five times higher than those produced by subjects

told that 1000 die from electrocution.

People seem impacted by how questions are asked and the

information surrounding a question.

COMPRESSION:

a ‘tendency toward the mean’ with estimates of a number of risk occurrence.

(overestimating unlikely risks and underestimating likely risks)

Subjects estimates showed less dispersion than actual risks.

However, the anchoring bias suggests that this pattern might have

changed with different procedures, which would make the

compression of estimates the more fundamental result.

AVAILABILIBTIY:

Some risks are simply more cognitively available for us because

they are more commonly discussed in public (e.g., media).

More available risks consistently received higher estimates than

less available ones (e.g., nuclear power and floods compared to

nanotechnology and dengue fever).

MISCALIBRATION OF CONFIDENCE:

People tend to be highly confident in their ability to estimate risk occurrence.

People tend to chose correctly only 75% of the time but are 90% confident of

having done so. This result is a special case of a general tendency to be

inadequately sensitive to the extent of one’s knowledge.

Information = tool; impacted by mental experiential Issues

Mental Models: assessing Risk Perceptions

Risk Perceptions and Communications:

A mental models approach “present[s] people with information they need in

a form that fits their __________ ways of thinking” (Morgan, et al. p. 2050)

How Mental Models Work:

“People process new information within the context of their existing

beliefs. If they know nothing about a topic, then a new message will

be incomprehensible. If they have erroneous beliefs, then they may

misconstrue the message” (Morgan, et al.)

“communicators need to know the nature and extent of a recipient’s

knowledge and beliefs if they are to design messages that will not

be dismissed, misinterpreted, or allowed to coexist with

misconceptions” Morgan, et al.).

Steps in a perception – driven, risk communication campaign:

1. Create expert model (what is scientifically known?)

2. Open-ended assessment of perceptions

3. Structured protocols/questionnaires to narrow and validate findings

4. Develop communications to provide relevant information given prior

perceptions

5. Iterative testing of successive versions of those communications

FIVE steps in Risk communication:

1. Create Expert model:

2. Open-ended elicitation of people's

beliefs about a hazard, allowing

expression of both accurate and inaccurate concepts.

Two questions:

what is important?

How does each ‘thing’ work?

3. Structured questionnaires designed

to validate and test the prevalence of these beliefs.

E.g., one respondent believed that cancer was caused by extra-

terrestrial beings? You would want to test to see how common this

belief is.

o Radon and house condemnation

4. Development of communications

based on what people need to know to make informed decisions and

assessment of their current beliefs.

5. Iterative testing of successive versions of those communications using

open-ended, closed form, and problem-solving instruments, administered

before, during, and alter the receipt of messages.

Look at Radon Example in Reading

Crisis Communication

Crisis Communication: Managing corporate reputation

What is crisis?

From an organizational standpoint, a crisis is any incident threatening an

organization’s reputation or procedures of operation.

An organizational problem exposed to public attention.

Types of Crises:

Victim crises: minimal crisis responsibility

Natural disasters: acts of nature such as tornadoes or earthquakes

Rumors : false and damaging information being circulated about you

organization

Workplace violence : attack by former or current employee on

current employees on-site

Product tampering/malevolence : external agent causes damage to

the organization

i. Tylenol

ii. Replacing sand with jello pudding and tying to sue them

Accident crisis: low crisis responsibility

Challenges : stakeholder claim that the organization is operating in

an inappropriate manner

Technical error accidents : equipment or technology failure that

causes an industrial accident

Technical error product harm : equipment or technology failure that

cause a product to be defective or potentially harmful

Preventable crises: strong crisis responsibility

Human-error accidents: industrial accident caused by human error

Human-error product harm: product is defective or potentially harmful

because of human error

Organizational misdeed: management actions that put stake holders at risk

and or violate the law

Stages of Crisis:

Stage 1: Pre-crisis planning

Crisis Planning involves Environmental scanning, a group watching for all

types of possible threats from the natural, economic, product, social and

political context.

Crisis prevention is about planning and organizational preparedness

(preparedness is your capacity to successfully deal with complex and

changing situations).

Issues audit (assessment of org vulnerability)

Issues prioritization

Creating a Communications plan

Names & Info for crisis team and key personnel

Determinations of levels and types of crises and plans to respond

Knowing and practicing ‘growth’ of crisis from initial response to EOC

and JIC

Designated situation rooms

On-call staff

Standardized forms and messaging

Dark sites

Units needed to manage

Training Training Training

Stage 2: Crisis Management

Crisis Management – Managing initial to ongoing response

Surprise (cameras on scene before leaders know about situation à Perceived

loss of control, internally (public scrutiny)

Anxiety, externally

Assessing a Crisis

Has someone verified that a crisis actually exists?

Is it contained geographically or will it impact things regionally,

nationally or internationally?

What are the legal and other implications?

What is the nature of the crisis: natural disaster, human error, product

tampering.

What resources are needed and from whom are they coming?

Crisis Communication Response:

1. Be quick and try to have initial response within the first hour.

2. Use a third party to speak for you—but only AFTER a high-ranking

organizational leader has publicly responded and formally introduced this

Public Information Officer.

3. Be accurate by carefully checking all facts

4. Be consistent by keeping spokespeople informed of crisis events and key

message points.

5. Make public safety the number one priority.

6. Use all of the available communication channels including the Internet,

Intranet, and mass notification systems.

7. Provide some expression of concern/symmoathy for victims.

8. Centralize information

9. Remember to include employees in the initial response.

10. Be ready to provide stress and trauma counseling to victims of the

crisis and their families, including employees.

Tips for Handling Media Personnel:

Repairing Reputation:

Deny Strategies:

1. Attack the accuser:

2. Denial:

3. Scapegoat:

Diminish Strategies:

1. Excuse:

a. Provocation:

b. Defeasibility:

c. Accidental:

d. Good intentions:

e. Justification:

Rebuild Strategies:

1. Compensation

2. Apology:

Reinforcing Strategies:

Bolstering:

Ingratiation:

CHAPTER 12

Student advocacy and sweatshop labor

Background:

Russell Athletic: major supplier of clothing and sportswear to college

campuses

In November 2009, Honduran workers’ union concluded an

agreement with Russell Athletic

o Agreement: workers back to work, recognized the union and

agreed to collective bargaining, compensation for last wages,

to allow access for union to Russell apparel plants in Honduras

Outsourcing has positives and negatives

Outsourcing to developing countries is an important business

strategies of large U.S. corporations

Positives: creates new jobs

Negatives: some companies violate workers rights “sweatshop”

environments

o Recent companies under criticism:

Sweatshops:

Sweatshop: Workplace with low wages under harsh working conditions. EX:

(long hours, unhealthy conditions, oppressive environment)

Two views: acceptance if laborers freely contract to work in these

conditions and that the conditions are illegitimate or immoral

Sweatshops are: _______________, unethical, and patently unfair to

workers

U.S. General

Accounting Office:

Environments where federal

laws

Different organizations have

Different definitions for

sweatshops

Brief History of sweatshops

1880-1920: garment and cigar manufacturing

Also see in laundry work, green grocers, and recently “day laborers”

(those who landscape suburban lawns”

Now: clothing industry: easy to separate higher and lower skilled

jobs

o Clothing companies will contract out sewing and finishing

work

o Make fashion oriented clothing: flexible, change quickly, and

done in small batches.

From the beginning sweatshops: rely on immigrant labor :

mainlywomen

o New York City, Seattle, and London and Paris: sweatshops

localized in districts and employed mainly immigrants

o Developing countries clothing sweatshops:

_________________________

Child labor, forced unpaid overtime, and widespread

violations of freedom of association (right to unionize)

History of sweatshops:

Cause of Sweatshops in developing nations:

Cost cutting by contractors who compete against themselves

Sweatshop visibility: public exposure by reformers in England and the U.S.

1889-1890: an investigation by the House of Lords Select

Committee on Sweating System

1884: U.S.: public investigations came as a result of efforts to curb

tobacco homework= outlawing of production of cigars in living

quarters in NY state

In US: fire in 1911 destroying Triangle Shirtwaist Company

500 workers in poor conditions

146 workers died

Triangle fire made public aware of horrible conditions

Sweatshops gradually declined after after (1938 Fair Labor

Standards Act: imposed minimum wage and required overtime pay)

1960’s sweatshops reappeared in large numbers= growing labor force of

immigrants

1980’s sweatshops = business as usual

1990’s =atrocious conditions

1994: U.S. Department of Labor: 93 % health safety violations, 68% did not

pay appropriate overtime wages, 51 % paid less than minimum wage in

California

Sweatshop Dilemma:

Unions: object to sweatshops= concerned about welfare and protect own

members jobs

Moral and economic perspectives:

Morally: exploit and endanger workers

Economic: developing countries might not be able to compete

o Only alternative to subsistence farming, casual labor,

prostitution, and unemployment

NGO’s anti sweatshop involvement:

Ngos: suggest voluntary standards for countries to commit

International Labour Office has Tripartite Declaration of Principles

Concerning Multinational Enterprise and Social Policy: guidelines for

employment, training, working conditions, and industrial relations

1948, General Assembly of United Nations: adopted Universal

Declaration of Human Rights: recognized all humans have inherent

dignity and specific rights

Russel athletic:

Russell Athletic

Nov. 2009: tipping point for struggle between student antisweatshop

movement and corporate worker

United Students Against Sweatshops (USAS) against Russell Athletic (RA)

RA agreed to rehire

o 1,200 workers in Honduras

Russel Corporations:

Founded by Benjamin Russell in 1902

Marketed under many brands:

Largest private employer in honduras

Owns all 8 factories in Honduras rather

o than subcontract out

2009 Scandal:

fired 145 workers in 2007 for supporting a union

Ignited antisweatshop campaign against company

Forced to reverse decision

Still violated workers rights in 2008

o Harassed union activists

o Made threats to close the jerzees de Honduras factors

o Closed factory on jan 30 2009

NGO’s anti-sweatshop pressure:

Worker Rights Consortium (WRC) investigation of Russell activity released 36

page report on Nov 7, 2008

Union Vice President: Norma Mejia: personally received death threats

WRC issues new reports through 2009 with recommendations to resolve

conflict

WRC= independent labor rights monitoring organization

In-depth investigations, public reports, aids workers at factories to

end labor abuses

Supported by 175 college and university affiliates: focused on labor

practices of factories that make apparel

WRC: Russell’s decision to close the plant= serious challenge yet faced to

the enforcement of university codes of conduct

If plant remained closed:

o Deprive workers of livelihood

o Send message to workers in Honduras (No point in standing

up for rights)

WRC investigation= spurred nationwide student campaign led by USAS

USAS persuaded 96 colleges to sever ties with Russell Athletics

USAS: grassroots organization run by students

Tackled Russell scandal: tactical actions : picketing at NBA finals to

protest leagues licensing agreement with Russell

o Fliers inside sport authority

o Sending twitter messages to Dick’s Sporting Goods customers

USAS reached Congress to gain more support

Fair Labor Association (FLA) – issued a statement June 25, 2009: putting

Russell Athletic on probation for not fitting standards

FLA policy making body is comprised on 3 constituent groups:

o Companies, colleges, and civil society organizations

Victory for USAS and WRC:

Nov. 2009: two years after USAS campaigning with apparel workers-

Honduran workers union concluded an agreement with Russell

Unprecedented victory for labor rights

First time that a factory was shut down to eliminate union was later

reopened because of a worker-activist campaign

Breakthrough: right to organize

Do you think sweatshops can be completely eliminated throughout the world

in the near future?

Coca-Cola in India

Brief Integrative Case 2.1

India’s Changing Marketplace

Soft Drink Industry in India

Total investment by Coke & Pepsi in India: $2,000,000,000

Direct employment by soft-drink industry: ___________ people

Indirect employment (supplies, shipping, etc.): ___________ people

The Charges Against Coke

2002

Villagers in Kerala allege:

____________ levels had sunk

That drinking water was ____________ by the Coke bottling plant

Health Minister of Kerala bans sale of all Coca-Cola and PepsiCo products,

claiming the products contained unsafe levels of pesticide

The Charges Against Coke

Sunita Narin

(director of Center of Science and Environment):

“It’s wonderful. Pepsi and Coke are doing our work for us. Now the whole

nation knows that there is a pesticide problem.”

Atul Singh

(CEO, Coca-Cola India):

“If pesticides are in the groundwater, why isn’t anyone else being tested? We

are continuously being challenged because of who we are.”

India’s Response to the Allegations

India’s Response to the Allegations

Coke’s Path Forward (in India)

Coke partners with local and international partners to address water

______________

Central Ground Water Authority

State Ground Water Boards

Schools and Colleges

NGO’s

Coke’s Path Forward (in India)

Coca-Cola embarks on a campaign to address micro-nutrient malnutrition, or

“________ ________”

In India, Coke introduces “Vitingo,” an orange-flavored beverage fortified

with ______-_________

Coke’s Path Forward (Globally)

Emphasis on water conservation

Lessons Learned

Coca-Cola did not:

__________ local government reactions to test results

__________ quickly enough to customer anxiety

__________ how fast news travels in modern India

Coca-Cola did:

Form committees in India and the US to address the problem

Commission its own lab tests

Respond in detail (eventually)

UN Global Water Challenge

Coke’s experience in Kerala as a snap-shot of a global problem