Identify at least four of Pfeffer’s people-centered practices, and define the term management.

Contrast McGregor’s Theory X and Theory Y assumptions about employees.

Explain the managerial significance of Deming’s 85-15 rule, and identify the four principles of total quality management (TQM).

Contrast human capital and social capital, and explain why we need to build both.

Explain the impact of the positive psychology movement on the field of OB.

Define the term E-business, and specify five ways the Internet is affecting the management of people at work.

Needed: People-Centered Managers and Workplaces

Learning Objectives

Chapter One

1. Job security

2. Careful hiring

3. Power to the people

4. Generous pay for performance

5. Lots of training

6. Less emphasis on status

7. Trust building

1-1

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Pfeffer’s Seven People-Centered Practices

1-2 Figure 1-1

The 4-P Cycle of Continuous Improvement

People(Skilled, motivated

people who can handle change. Less stress.)

Products(Satisfied customers

because of better quality goods/services.

Job creation.)

Processes(Faster, more flexible,

leaner, and ethical organizationalprocesses. Organizational learning.)

Productivity(Less wasteful, more

efficient use of allresources.)

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1. Clarifies goals and objectives for everyone involved.

2. Encourages participation, upward communication, and suggestions.

3. Plans and organizes for an orderly workflow

4. Has technical and administrative expertise to answer organization-related questions.

5. Facilitates work through team building, training, coaching, and support.

1-3

Skills & Best Practices: The Effective Manager’s Skill Profile

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6. Provides feedback honestly and constructively.

7. Keeps things moving by relying on schedules, deadlines, and helpful reminders.

8. Controls details without being overbearing.

9. Applies reasonable pressure for goal accomplishment.

10. Empowers and delegates key duties to others while maintaining goal clarity and commitment.

11. Recognizes good performance with rewards and positive reinforcement.

1-4

Skills & Best Practices: The Effective Manager’s Skill Profile (Cont.)

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1-5 Table 1-1

Evolution of 21st Century Managers

Multicultural, multilingual

Monocultural, monolingual

Cultural orientation

Skills, resultsTime, effort, rankCompensation criteria

Continuous life-long learning, generalist with multiple specialties

Periodic learning, narrow specialist

Learning and knowledge

Facilitator, team member, teacher, advocate, sponsor, coach, partner

Order giver, privileged elite, manipulator, controller

Primary role

Future ManagersPast Managers

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1-6 Table 1-1

Evolution of 21st Century Managers (Cont.)

Broad-based input for joint decisions

Limited input for individual decisions

Decision-making style

MultidirectionalVerticalPrimary communication-pattern

Primary resourcePotential problemView of people

Knowledge (technical and interpersonal)

Formal authorityPrimary source of influence

Future ManagersPast Managers

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1-7 Table 1-1

Evolution of 21st Century Managers (Cont.)

FacilitateResistApproach to change

Share and broaden access

Hoard and restrict access

Handling of power and key information

Cooperative (win-win)Competitive (win-lose)

Nature of interpersonal relationships

ForethoughtAfterthoughtEthical considerations

Future ManagersPast Managers

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Theory X Most people dislike work Most people must be

coerced and threatened before they will work

Most people actually prefer to be directed

1-8

McGregor’s Theory X and Theory Y

Theory Y Work is a natural activity People are capable of self-

direction and self-control Rewards cause people to

be more committed to organizational goals

The typical employee can learn to accept and seek responsibility

People are imaginative, creative and have ingenuity

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Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction

Principles of TQM1. Do it right the first time to eliminate costly rework.

2. Listen to and learn from customers and employees.

3. Make continuous improvement an everyday matter.

4. Build teamwork, trust and mutual respect.

1-9

What is TQM?

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1-10

The Age of Human and Social Capital

Human Capital The productive potential of

one’s knowledge and actions

Social capital The productive potential of

strong, trusting, and cooperative relationships

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1-11 Figure 1-2

The Strategic Importance and Dimensionsof Human and Social Capital

StrategicAssumption

Individual Human Capital

Social CapitalOrganizational Learning

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1-12

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Skills & Best Practices: How to Build Human and Social Capital

Building Human Capital

“The brokerage…spends $75,000 per worker on training, and just built AGEU, a 20,000 square foot education center for new financial consultants”

A.G. Edwards

St. Louis

16,482 employees

“Education is foremost at this construction company, where all employees—called ‘partners’—are allowed 100% reimbursement of tuition, fees, and books at any state-supported college.”

TDIndustries

Dallas

1,393 employees

Program or activityCompany

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1-13

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Skills & Best Practices: How to Build Human and Social Capital (Cont.)

Building Social Capital

“The 153-year-old travel and financial services firm…recently reinstated 12-week sabbaticals [so] staff can take time off to work at nonprofits.”

American Express

New York

43,477 employees

“The software giant…matches charity donations up to $12,000.”

Microsoft

Redmond, WA

36,665 employees

Program or activityCompany

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1-14

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Skills & Best Practices: How to Build Human and Social Capital (Cont.)

Building Social Capital

“The maker of rugged footwear gives employees up to 40 hours a year of paid time off for community service.”

Timberland

Stratham, NH

2,116 employees

Program or activityCompany

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Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities

1-15

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Positive Organizational Behavior

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C onfidence/self-efficacy

H ope

O ptimism

S ubjective well-being

E motional intelligence

1-16 Table 1-3

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Luthans’s CHOSE ModelOf Key POB Dimensions

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E-business running the entire business via the Internet

E-Management Fast paced; Virtual teams, Networking skills E-communication Email use/abuse; Telecommuting promised

and drawbacks E-leadership Involves electronically-mediated interactions in

combination with traditional face-to-face Goal setting and feedback Web-based goal-setting/evaluation;

Risk of over control? Organizational structure Virtual teams and organizations; Lack

of trust and loyalty in “faceless” organizations? Job design “Sticky” work settings; Unrealistic expectations?

1-17

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E-business Implications for OB

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Decision making – Less time to make more decisions; Information overload; Empowerment and participative decision making

Knowledge management – E-training; E-learning; distance learning: Asynchronous vs. synchronous

Speed, conflict, and stress – Does relentless speed equal burnout?

Change and resistance to change – Stop the World, I want to get off! Constant change equals conflict

Ethics – Net slaves (low pay with unrealistic promises of riches); Electronic monitoring; Repetitive motion injuries; Abuse of part-timers (no benefits, no job security); Privacy issues

1-18

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E-business Implications for OB (Cont.)

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