msci211 summary

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Final Topics 1. What are culture dimensions? How can they be applied in OB? Ch. 3, p42 Answer: Link – (Culture is the learned and shared way of thinking and acting among a group of people or a society.) Some popular dimensions of culture include differences that can be observed in: 1. Language; 2. Time orientation; 3. Use of space; and 4. Religion; Hofstede’s five dimensions of national cultures and national cultures include: 1. Power distance: the willingness to accept status and power differences among its members. 2. Uncertainty avoidance: tendency to be uncomfortable with risk and ambiguity. 3. Individualism-collectivism: tendency to emphasize either individual or group interests. 4. Masculinity-femininity: tendency to value stereotypical masculine or feminine traits. 5. Long-term/short-term orientation: tendency to emphasize values associated with the future, such as thrift and persistence, or values that focus largely on the present. Note: on p46 there are 3 types of culture differences: (1) relationships with people, (2) attitudes toward time, (3) attitudes toward the environment. In my opinion it is not the range of this question. Please indicate if you think this is incorrect. Application? 2. What are the major types of organization structures? What’s the application of each of them? Ch. 11, p215 (Horizontal specialization) Prof. Blake said he preferred the bureaucracy types: Pure types: 1. Mechanistic type (machine bureaucracy): emphasizes vertical specialization and control, with impersonal coordination and a heavy reliance on standardization, formalization, rules, policies, and procedures. It is often used to achieve efficiency. 2. Organic type (professional bureaucracy): emphasizes horizontal specialization, extensive use of personal coordination, and loose rules, policies, and procedures. It is often used for problem-solving and satisfying individual customer needs. Hybrid types: 3. Divisional pattern: groups individuals and resources by products, territories, services, clients, or legal entities. This structure is often used to respond to diverse external threats and opportunities. This is used to allow different divisions to be more or less organic or mechanistic.

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Page 1: MSCI211 Summary

Final Topics

1. What are culture dimensions? How can they be applied in OB? Ch. 3, p42 Answer: Link – (Culture is the learned and shared way of thinking and acting among a group of people or a society.) Some popular dimensions of culture include differences that can be observed in:

1. Language; 2. Time orientation; 3. Use of space; and 4. Religion;

Hofstede’s five dimensions of national cultures and national cultures include:

1. Power distance: the willingness to accept status and power differences among its members. 2. Uncertainty avoidance: tendency to be uncomfortable with risk and ambiguity. 3. Individualism-collectivism: tendency to emphasize either individual or group interests. 4. Masculinity-femininity: tendency to value stereotypical masculine or feminine traits. 5. Long-term/short-term orientation: tendency to emphasize values associated with the future,

such as thrift and persistence, or values that focus largely on the present. Note: on p46 there are 3 types of culture differences: (1) relationships with people, (2) attitudes toward time, (3) attitudes toward the environment. In my opinion it is not the range of this question. Please indicate if you think this is incorrect. Application?

2. What are the major types of organization structures? What’s the application of each of them? Ch. 11, p215 (Horizontal specialization) Prof. Blake said he preferred the bureaucracy types: Pure types:

1. Mechanistic type (machine bureaucracy): emphasizes vertical specialization and control, with impersonal coordination and a heavy reliance on standardization, formalization, rules, policies, and procedures. It is often used to achieve efficiency.

2. Organic type (professional bureaucracy): emphasizes horizontal specialization, extensive use of personal coordination, and loose rules, policies, and procedures. It is often used for problem-solving and satisfying individual customer needs. Hybrid types:

3. Divisional pattern: groups individuals and resources by products, territories, services, clients, or legal entities. This structure is often used to respond to diverse external threats and opportunities. This is used to allow different divisions to be more or less organic or mechanistic.

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4. Conglomerate: firms that own several different unrelated businesses. It is always used in the organization is providing varies kinds of services. (not sure about this, double check…)

/* There are 3 pure forms of organization structures:

1. Functional structure: grouping individuals by skill, knowledge, and action yields. This structure is often used in small firms. Even large firms use this structure in technically demanding areas or when low cost is a major competitive focus.

2. Divisional structure: groups individuals and resources by products, territories, services, clients, or legal entities. This structure is often used to respond to diverse external threats and opportunities.

3. Matrix structure: a combination of functional and divisional patterns which assigns an individual to more than one type of unit. This structure is often used when precise integration and control are needed across many sophisticated functional specialties and corporations.

4. Mixed structure of above three. */

3. What are high performance organizations? Ch. 2, p26 A high performance organization is designed to bring out the best in people and achieve sustained high performance. The essential foundation for the high performance organization is intellectual capital, the sum total of knowledge, expertise, and energy available from an organization’s members. HPOs tend to organize workflow around key business processes and follow human-resource policies that are designed to increase employee flexibility, skills, knowledge, and motivation. The key components of HPOs include:

1. Employee involvement 2. Self-directing work teams 3. Integrate production technologies 4. Organization learning 5. Total quality management

4. What roles do people play in organizations? Chapter 4, Ch10? Pp 190… can’t find… maybe p189 types of new comer.

1. Tough battler. 2. Friendly helper. 3. Objective thinker.

If it is the managerial roles, that will be in Ch.1 p12…

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5. What are organizational change strategies? What’s the application of each of them? Ch. 19, p385 There are 3 strategies of organizational change.

1. Force-coercion strategy: uses authority, rewards, and punishments as the main reasons to change. This strategy can be applied when you believe that people who run things are basically motivated by self-interest and by what the situation offers them in potential personal gains or losses.

2. Rational persuasion strategy: try to make change happen through the use of special knowledge, empirical support, or rational arguments. This strategy can be applied when you believe that people are basically rational and are guided by reason in their actions and decision making.

3. Shared-power strategy: actively and sincerely involves the people who will be affected by a change in planning and making key decisions about the change. This strategy can be applied when you believe that people have complex motivations.

6. What styles are there to handle conflict? When is it appropriate to apply? Ch. 18, p367 Conflict can be handled in many ways, but the important goal is to achieve or make it possible for there to be true conflict resolution (occurs when the reasons for a conflict are eliminated). There are several indirect conflict management approaches:

1. Reduced interdependence: when workflow conflicts exist, managers can adjust the level of interdependency among the units or individuals. This can be applied when the units’ tasks can be adjusted to reduce the number of required points of coordination.

2. Appeals to Common Goals: to common goals can focus the attention of potentially conflicting parties on one mutually desirable conclusion. This can be applied when the potential dispute is seen through a common framework that helps the parties recognize that they need each other in order to achieve common goals.

3. Hierarchical Referral: uses the chain of command for conflict resolution, i.e. refer the problem for more senior managers up the hierarchy to solve. This can be applied when the problem is not severe or recurring.

4. Altering Scripts and Myths: The scripts become rituals that allow the conflicting parties to express their frustrations and to recognize that they depend on each other through the larger corporation. This can be applied in some situations that conflict is superficially managed by scripts, or behavioural routines that become part of the organization’s culture.

As well as the direct conflict management approaches: (cooperativeness – attempting to satisfy the other party’s concerns, assertiveness – attempting to satisfy one’s own concerns)

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1. Cooperative and unassertive solution (lose-lose) - smoothing or accommodation (involves treating differences as being small and finding areas of agreement): letting the other’s wishes rule. Smoothing over differences to maintain superficial harmony.

2. Uncooperative and unassertive solution (lose-lose) - avoidance (involves pretending a conflict does really exist): downplaying disagreement. Failing to participate in the situation and/or staying neutral at all costs.

3. Cooperative and assertive solution (win-win) – collaboration (involves recognizing that something is wrong and needs attention through problem-solving) and problem solving (uses information to resolve disputes): seeking true satisfaction everyone’s concerns by working through differences, finding and solving problems so everyone gains as a result.

4. Uncooperative and assertive solution (win-lose) – competition (is trying to win by force, superior skill, or domination) and authoritative command (uses formal authority to end conflict): working against the wishes of the other party. Fighting to dominate in win-lose competition and/or forcing things to a favourable conclusion through the exercise of authority.

5. “Medium state” solution (lose-lose) - compromise (occurs when each party gives up something of value to the other party): working toward partial satisfaction of everyone’s concerns; seeking “acceptable” rather than “optimal” solutions so that no one totally wins or loses.

7. What are the different media types of communication? What’s the application of each of them? Ch. 16, p330 (Channel richness)

1. Face-to-face 2. Telephone 3. Videoconferencing 4. E-mail 5. Written memos, letters 6. Posted notices and bulletins

The first 5 media are richer than the 6th one, they can be used to pass the complex and open-ended information. The 6th medium is leaner, and it works well for more routine and straightforward messages, such as announcing the location of a previously scheduled meeting.

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Ch.1

*OB = the study of individuals and groups in orgs Dramatic changes signal the emergence of a new workplace with

- high technology - global competition - demanding customers, - high-perf sys.

*Workplace is changing

- Demise of “command-and-control” - New workforce expectations - Critical role of information technology - Belief in empowerment - Emphasis on teamwork - Concern for work-life balance

*Valuing workforce diversity is a key theme *workforces are increasingly diverse in terms of

- gender - race and ethnicity - language - age - able-bodiedness - sexual orientation

Glass Celling Effect: a hidden barrier that limits the advancement of women and minorities in orgs. Org learning is the process of acquiring knowledge and using info to adapt successfully to changing circumstances. Learning OB involves not only textbook reading but also commitment to continuous and life long learning from exp. Take a scientific approach

- Controlled systematic data collection - Careful testing of proposed explanations - Only accept proven explanations - Field studies, lab studies, surveys, case studies, meta analyses

*Org = a collection of PPL working together to achieve a common purpose – to produce goods or services for society *Each can be seen as an open system that transforms input resources (human (intellectual capital), information, technology, materials, facilities, money) from the environment into outputs (finished goods and services) returned to the environment *A Mgr. performs a job that involves directly supporting the work efforts of others; and is now thought more in terms of coordinator, coach, or team leader rather than boss; the focus is on guiding and influencing ppl rather than telling them what to do

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An effective Mgr. is a Mgr. whose work unit, team, or group accomplishes hi-lvl of perf that can be sustained over the long term by enthusiastic workers. A Mgr.

- works long hours - is busy - is often interrupted - works mostly with other ppl - is a communicator

Focuses on

- effective task performance and - the satisfaction, commitment and involvement of employees

*Four functions of management

- Planning: to set directions: deciding what is to be achieved - Organizing: to assemble resources and systems: deciding how goals are to be achieved

(who does what, when, with which resources) - Leading: to create workforce enthusiasm: day-to-day interaction to motivate, guide,

communicate - Controlling: to ensue desired results: ensuring things go as planned by monitoring

performance and taking corrective action when needed *Management roles

- Interpersonal (as figurehead, leader, liaison) - Informational (as monitor, spokesperson, disseminator) - Decisional (as entrepreneur, disturbance handler, negotiator, resource allocator) While working with networks of ppl both inside and outside the org

*Management skills

- Technical – ability to perform specialized tasks - Human – ability to work well with others - Including emotional intelligence, creating effective networks - Conceptual – ability to analyse and solve complex problems

*Ethical behaviour = behaviour that is morally accepted as good or right instead of bad or wrong *Four criteria or ways of thinking to determine whether or not a behaviour is ethical

- Utilitarian view - Individualism view - Moral-rights view - Justice view: Procedural justice, Distributive justice, Interactional justice

*Core value of organizational behaviour is a commitment to enhancing quality of work life, the overall quality of human experiences in the workplace

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Ch. 2 Total quality management involves

- making sure the customers are satisfied - making sure all tasks are done right the first time - working toward continuous improvement

Customer-driven orgs can be seen as upside-down pyramids where workers work in ways that directly affect customers, and managers work in ways that directly support the workers. Changing customer expectations

- Competitive environment and demand for high quality and strong service - Focus remains on total quality management, continuous improvement - Needs of customer are paramount

*Changing workforce:

- Greater diversity – more women, more visible minorities, aging workforce - Generation X workers – want: greater autonomy, challenging work, flexible work

schedules; work in a team; loyalty not important to them - Skill deficiencies – in many high school graduates; in a knowledge-driven economy, lack

of basic skills means need for expensive remedial training *Changing Organizations:

- Constant change – sometimes deliberately pursued through process re-engineering - Expanding use of information technology – electronic commerce - Movement towards a free-agent economy – individuals contract their services to a

changing mix of employers A Hi-perf org (HPO): is designed to bring out the best in ppl and achieve sustained hi-perf HPO tend to organize workflow around key business processes and follow HR policies that are designed to increase employee flexibility, skills, knowledge, and motiviation. *Five key component of HPO:

1. Employee involvement 2. Self-directing work teams 3. Integrated production technologies 4. Organizational learning 5. TQM

*Five challenges of HPO:

1. Environmental linkages: HPO is an open system, influenced by external environment and influencing it in turn

2. Internal integration: successfully working together (e.g. self-directed teams using production technology, involved in decision making but also working with others above and below, also involved in the decisions relevant to them, tracking appropriate info for organizational learning and maintaining focus on high quality)

3. Middle-mgr. rolls: - Resistance from employees - Resistance from managers - Tensions between components

4. Upper-lvl leadership: - Determine how far to go towards becoming HPO (how many components to use) - Extend business internationally - Train middle-mgrs.

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- Keep overall +ve momentum during times of great change 5. Greenfield Sites versus Redesigns

Westjet case studies: *Component:

Employee involvement – flat, lean hierarchy, with extensive empowerment; heavy team emphasis

Integrated production technologies – internet technology used for ticketless travel, dispatch, revenue management, parts replacement

Organizational learning – sharing of business information through letters and newsletters to employees, recovery/learning centre doubles as back-up for main computer and training facility

TQM – “WestJet Spirit” comprised of strong work ethic, strong desire for quality work, desire to go beyond the call of duty, helping others, “doing the right thing”

Other HPO aspects

- Has clear mission and vision, reflected in core values and company culture - Hiring supports culture and mission through emphasis on “WestJet Spirit”, values of

hard work and fun - Profit-sharing; over 80% of employees are shareholders; these compensation policies

support motivation and commitment - Successful adaptation to environmental changes despite fierce competition

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Ch. 3 *Globalization = growing worldwide interdependence of resource suppliers, product markets, and business competition As a result of globalization:

constant movement of skills, investments, products, trends increasingly multicultural workforce regional economic alliances (e.g., EU, APEC) formed global quality standards are emerging (e.g., ISO)

Today’s mgr. need

Global awareness Aware of how international events can affect the well-being of an organization

Cultural sensitivity Know how to deal with people from other cultures and countries

Global “mindset” of cultural adaptability, patience, flexibility, and tolerance is a major asset to successful adaptation and progress in today’s business context

*Culture = the learned and shared way of thinking and acting among a group of people or a society Factors associated with expatriate success:

Good technical and language skills Strong desire to work overseas Specific knowledge of overseas culture Well-adjusted family situation Complete support of spouse Behavioral flexibility Adaptability and open-mindedness Good relational ability Good stress management skills

*Dimensions of culture

1. Language (low-context vs. high-context) 2. Time orientation (monochronic vs. polychromic) 3. Use of space 4. Religion

*Hofstede’s dimensions on varying cultural values

1. Power distance: Willingness of a culture to accept status and power differences among its members, to respect hierarchy and rank in organizations

2. Uncertainty avoidance: The cultural tendency to be uncomfortable with uncertainty and risk in everyday life

3. Individualism-collectivism: reflects likely preference for working as individuals or working together in groups

4. Masculinity-femininity: The degree to which a society values assertiveness and competition or interpersonal sensitivity and concern for relationships

5. Long-term/short-term orientation: Degree to which a culture emphasizes values associated with the future or values that focus largely on the present; reflects whether performance is viewed from a long-term or short-term perspective

Problems in int’l dealing:

Parochialism (assuming the ways of your culture are the only ways of doing things) Ethnocentrism (assuming the ways of your culture are the best ways of doing things)

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*MultiNational Corporations (MNCs) Have operations in more than one foreign country May one day become transnational employers with a total world view and no national home Have enormous economic impact and influence

*Multiculture workforce: requires everyone to work well with ppl of different cultural bgs. *Expatriate employees work and live in another country for an extended time

Expensive investment with greatest problems when starting work in foreign culture and on returning home

Stages in adjustment to new country: Tourist stage (trouble of re-allocation) Disillusionment stage (adjustment problem) Culture shock stage (go abroad and return home)

Ethical challenges resulting from diversity in cultures, governments, legal systems E.g., issues regarding bribery, corruption, child labour, prison labour, “sweatshops”

Ethical behaviour approached two opposite ways: Cultural relativism – believes there is no universal right way to behave; it depends on the cultural context (“When in Rome do as the Romans do”) Ethical absolutism – believe single moral standard applies in all situations, to all cultures Management theories are NOT universal Adjustments needed for cultural factors Culture is one of the contingencies that must be accounted for in organizational behaviour

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Ch. 5 Perceptual Process:

- individuals use which to pay attention to and to select, organize, interpret, and retrieve info from the world around them

- involves (will be influenced by): * the perceiver: exp, needs or motives, values, attitudes * the setting: physical, social, organizational * the perceived: contrast, figure-ground separation, intensity, size, motion, repetition/novelty

- Stages: attention and selection: always overloaded info. Screen the info –

sometimes the perceiver are aware that they are processing the info, sometimes they don’t (like thinking while driving).

Organization: schemas are cognitive framworks that consist of organized knowledge

developed thru exp, of a specific concept or stimuls. Person schemas are the way individuals sort others into categories. A script schema is def. as a knowledge framework that describes the

appropriate seq of events in a particular situation. Interpretation: attention has been drawn repeatly, then think about the

reason behind it. Retrieval: memory

- Responses: thoughts, feelings, and xns. Common Perceptual distortions:

- Stereotypes or Prototypes: also in personal schemas. Stereotypes – compare to same kinds of other ppl. Prototypes – compare to the perceiver him/herself.

- Halo/Horm effects: - Selective perception: consistent w/ one’s needs, values, or attitudes. - Projection: the assignment of one’s personal attributes to other individuals. Can be

controlled thru a hi deg. Of self-awareness and empathy (the ability to view a situation as others see it)

- Contrast effects: occurs when an individual’s characteristics are contrasted w/ those of recently encountered and who rank higher or lower on the same characteristics.

- Self-fulfilling prophecy: 预言 Managing the perceptual process:

- Impression management of the self and others - Managing the info attention and selection stages - Managing the info organization stage - Managing the info interpretation stage - Managing the info storage and retrieval stage - Being sensitive to the effects of the common perceptual distortions.

Attribution theory: is the attempt to understand the cause of an event, assign responsibility for the outcomes of the event, and assess the personal qualities of the ppl involved.

- Emphasizes the interpretation stage. Internally or externally caused? - 3 factors:

o Distinctiveness: how consistent a person’s behaviour is in different situations o Consensus: whether all persons facing a similar situation repond in the same

way. o Consistency: whether an individual responds the same way as time passes.

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- 2 errors: o Fundamental attribution err: underest. the influence of situational (external)

factors and over estimate the influence of personal (internal) factors in evaluating someone’s behaviour

o Self-serving bias: deny personal responsibility for performance problems but to accept personal responsibility for performance success.

o An overemphasis on internal causes tends to lead to assigning responsibility for failure to employees and results in disciplinary actions, negative performance evaluations, and so on

o An underemphasis on external causes tends to lead to a lack of workplace support.

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Ch. 6 Motivation: refers to the forces inside an individual that lead to the level (how hard), direction (choose of alternative), and persistence (how long on specific xn) of the effort he/she makes at work. Theories of motivation can be divided into 3 categories:

- Reinforcement theories: emphasize the means used in the process of controlling an individual’s behavior by manipulating its consequences.

- Content theories: identify different needs that may motivate individual behavior. - Process theories: seek to understand the thought processes that determine behavior.

Reinforcement: is the administration of a consequence as a result of behavior. Classical conditioning: is a form of learning through association that involves the manipulation of stimuli to influence behavior. Operant conditioning: is the process of controlling behavior by manipulating or “operating” on, its consequences. Law of effect: behavior that results in a pleasant outcome is likely to be repeated, or vise and versa. OB Mod: is the systematic reinforcement of desirable work behavior and the non-reinforcement or punishment of unwanted work behavior. It includes 4 parts:

- +ve reinforcement: is the administration of +ve consequences that tend to increase the likelihood of the behavior being repeated in similar settings.

o Law of contingent reinforcement: states that for a reward to have maximum reinforcing value, it must be delivered only if the desired behavior is exhibited.

o Law of immediate reinforcement: states that the more immediate the delivery of a reward after a desired behavior occurs, the greater the reinforcing effect on that behavior.

o Shaping: is the creation of a new behavior by the +ve reinforcement of successive approximations leading to the desired behavior.

o +ve reinforcement can be given according to either continuous (each time it happen) or intermittent schedules (periodically). (see Figure 6.3 on pp102)

- -ve Reinforcement (Avoidance): is the w/draw of –ve consequences, which tends to

increase the likelihood of desirable behavior being repeated in a similar setting. - Punishment: is the administration of –ve consequences that tent to reduce the likelihood

of the behavior being repeated in similar settings. - Extinction: is the w/draw of the reinforcing consequences for a particular behavior.

Maslow’s hierarchy of needs theory: is a pyramid of physiological, safety, social (lower order needs), esteem, and self-actualization needs (higher order needs). Clayton Alderfer’s ERG theory:

- Reduced categories of hierarchy to 3: o Existence needs – desires for physiological and material well-being o Relatedness needs – desires for satisfying interpersonal relationships o Grouth needs – disires for continued personal grouth and development.

- Emphasizes a unique frustration-regression component. - More than one need way be activated at the same time.

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Acquired needs theory: - Need for achievement(nAch): the desire to do better, solve problems, or master complex

tasks. - Need for affiliation(nAff): the desire for friendly and warm relations with others - Need for power(nPower): the desire to control others and influence their behavior.

Two-factor theory:

- Hygiene factors: sources of job dissatisfaction. - Motivator factors: sources of job satisfaction.

Equity Theory: ppl will act to eliminate any inequity (unfairness) that they feel there is in the rewards they receive for their work compared to what others receive. Expectancy Theory: argues that motivation is determined by individual beliefs about effort-performance relationships and work outcomes.

- Expectancy (E): is the probability that work effort will be followed by goal or task achievement.

- Instrumentality (I): is the probability that performance will liead to particular work outcomes.

- Valence (V): is the value to the individual of various work outcomes. - Motivation (M) = E I V

Job satisfaction: is how +vely or –vely individuals feel about their jobs. 5 facets:

- The work itself – responsibility, interest, and growth - Quality of supervision – technical help and social support - Relationships with co-workers – social harmony and respect - Promotin opportunities – chances for further advancement - Pay – adequacy of pay and perceived equity vs. others.

Job satisfaction is linked to:

- Absenteeism: satisfied have less absenteeism - Turn-over: dissatisfied more likely to quit - Performance complex:

o Satisfication is NOT good predictor of individual performance o Successful performance does seem to lead greater satisfaction o Proper allocation of awards can increase both performance and satisfaction

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Ch.7 HR strategic planning is the process of providing capable and motivated ppl who will carry out the org’s mission and strategy. Staffing function (a key part of strategic planning):

Job Analysis: collect and classify info about tasks the org needs to complete. - Description: what to do - Specification: requirement, etc.

Recruitment: attract and get the best qualified ind. to apply for a job (of the org.). - Advertisement of a position vacancy - Initial contact with potential job candidates (e.g. phone interview) - First screening to obtain a pool of candidates.

* difference between external and internal recruitment. * Realistic job previews give applicants an objective description of a job and org (in order to reduce turn over and to better prepare new hires to handle their jobs.

Selection: series of steps from initial applicant screening to final hiring. - Review completed application materials (include traditional application forms, e.g.

Resume) - Conduct interview - Administer any necessary tests (intelligence, personality, mechanical… may be conduct

before interview) - Invest background (employment history, educational records, criminal records, driving

records, reference checks…) - Decide to hire or not to hire

Socialization: orienting newly hired employees (hires) to the org. (familiarized w/ the firm’s policies and procedures and begin to understand the org’s culture, co-workers)

Training and Career Dev.: long term career planning and development. Training is a set of activities that provides the opportunity to acquire and improve job-

related skills. - OJT(on-the-job training): involves job instruction as the job is being done in the actual

workplace. - Off-the-job training: involves lectures, videos, and simulations.

Career Planning and Dev.: means working w/ managers and/or HR experts on career issues. 5-step process in formal career planning: - Personal assessment (strength/weaknesses, apitudes/abilities/values, work career

preference) - Analysis of opportunities (Econ cond’ns, labour market occupational choices) - Selection of career objectives (long- (5~10yrs), intermediate- (3~5yrs), short-

(1~3yrs)term) - Selection and implementation of plan (Job search, initial entry to career, continued

personal development) - Evaluation of results and revision of plan as necessary( Monitor progress, solicit

feedback, compare results and objectives) Career stages: different pts. Of work responsibility and achievement which ppl. pass thru during their work lives. Career plateau: is a position from which someone is unlikely to advance to a higher lvl of responsibility.

Performance appraisal: process of systematically evaluating an employee’s performance and providing feedback on which performance adjustments can be made. - 4 functions:

1. Define the specific job criteria against which performance will be measured. 2. Measure past job performance accurately 3. Justify the rewards given to ind’ls and/or groups, thereby discriminating between

high and low performance.

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4. Define the dev exp the rated employee needs to undergo in or der to improve performance in the current job and prepare for future responsibilities.

- 2 purposes of good performance-appraisal systems: 1. Evaluative decisions: involve such issues as promotions, transfers, termination and

salary increses. 2. Feedback and Development decisions: to let employees know how well they are

doing relative to the org’s expectations and performance objectives. - Who does performance appraisal?

o Traditionally - supervisor o Potentially - anyone in a position to observe the person’s performance

E.g., 360 degree evaluation (a comprehensive approach that uses self-ratings, customer ratings, and the rating from others who are outside the work unit)

- Appraisal dimensions o Output measures o Activity measures

- Methods: (3 comparative methods) o Ranking: Rank order employees from best to worst o Paired comparison: Each employee directly compared to each other o Forced distribution: Forces certain proportion of employees into each

performance category (4 absolute methods) o Graphic rating scales: Dimensions thought relevant to performance are scored o Critical incident diaries: Incidents of unusual success or failure are tracked o Behaviourally anchored rating scales(BARS): Observable job behaviours

evaluated o Management by objectives (MBO): Joint goal-setting between supervisor and

subordinate focused on subordinate’s job - Measurement errors in performance appraisal:

o Halo error: results when a person rates another person on several different

dimensions and gives a similar rating for each dimension.

o Leniency/strictness error: tendency to give relatively high/low ratings to

almost everyone.

o Central tendency error: occurs when managers lump everyone together around

the average, or middle, category. (Both leniency/strictness and central tendency

error are low differentiation error)

o Recency error: is biased rating that results from using the ind’s most recent

behaviour as the measure of his or her overall performance on a particular

dimension.

o Personal bias error: occurs when a rater allows specific biases, such as race, age,

or gender, to affect the performance appraisal.

o Cultural bias error

- Improving performance appraisals:

o For improved usefulness:

Train raters

Regular ongoing observation of employees

Limit number appraised by one supervisor

Clear standards

Avoid ambiguous terms like “average”

o legal defensibility:

Dimensions based on accurate job analysis

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Expectations clearly understood by employees

Based on observable evidence and documentation, avoiding abstract

concepts open to interpretation

System validated

Appeal process in place

Rewards:

o Extrinsic or Intrinsic

o Pay (most common extrinsic reward):

Pay can attract people to organization and motivate high performance

But dissatisfaction with pay can lead to major problems

Merit pay: a compensation system that bases an ind’s salary or wage increase on

a measure of the person’s performance accomplishments during a specified

time period.

Creative pay practices:

Skill-based pay: is a system that rewards ppl for acquiring and

developing job-relevant skills that fit the org’s needs

Gain-sharing plans: is a pay system that links pay and performance by

giving the workers the opportunity to increase their earnings by

sharing in productivity gains

Profit-sharing plans: reward employees based on the entire org’s

performance

Employee stock ownership plans: like above, but measured by the stock

price rather than profit

Lump-sum pay increases: are a pay system in which ppl choose to

receive their wage or salary increase in one or more “lump-sum”

payments

Flexible benefit plans: allow workers to select their own benefits

according to their individual needs

o Managing intrinsic rewards involves the challenge of designing a work setting in which employees can, in effect, reward themselves for a job well done.

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Ch.9 Group: two or more ppl who work together regularly to achieve common goals. Effective group: a group that achieves high levels of

- task performance: measures of quantity, quality, and timeliness of work results. - member satisfaction: positive experience that meets members’ needs - team viability: members willing to work together again or look forward to do so

Synergy: is the creation of a whole that is greater than the sum of its parts. Superior performance (i.e., better than lone individuals) when:

- No clear expert to assign decision to - Problem-solving can be handled by dividing work and sharing information - Need for creativity and innovation (groups more willing to take risks than are

individuals)

Group is a forum to learn and share info, also satisfying needs for social interaction, security, emotional support, and ego involvement in activities. Social loafing: occurs when ppl work less hard in groups than they would by themselves.

- Reason: o Individual contribution is less noticeable in the context of the group o Prefer to see others carry the workload

- Ways to deal w/ it: o Define members’ roles and tasks to maximize ind interests o Make sure the rewards an ind receives depend on the individual’s performance

contributions to the group o Make members feel more responsible for their personal performance by

identifying what each ind has contributed to the group.

Social facilitation: tendency for one’s behaviour to be influenced by the presence of others in a group. The audience acts to create emotional arousal or excitement that:

- Enhances behaviour when one is proficient at the task (e.g., athlete at Olympics); or - On the other hand, negatively affects behaviour when the task is not well learned

Formal group: one that is officially designated for a specific organizational purpose. - Permanent workgroup/command group: unit with subordinates reporting to head who

links with other parts of organization, and perform specific function on regular basis - Temporary work groups: e.g., committee, cross-functional task force - Virtual groups: meet and work together electronically through computer networks

Informal group: one formed spontaneously by members without being officially designated by the organization. Impact: informal groups can influence workflow through individuals helping each other and can satisfy needs for belonging, security, social interaction

- Friendship groups: people who like each other and choose to spend time together. - Interest groups: share common work or non-work interests.

Tuckman’s five stages of group development: - Forming: getting to know each other, exploring task and approach - Storming: conflict over who will do what and how; dealing with tension and defining

group task - Norming: initial integration of comfortable relationships and working together; sense of

harmony but not fully mature - Performing: maturation in relationships and in task performance; can deal with complex

tasks and internal disagreements - Adjourning: disbanding and celebrating accomplishments

Ten criteria for measuring the maturity of a group: 1. Poor/Excellent feedback mechanisms

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2. Dysfunctional/Functional decision-making methods 3. Low/High group loyalty/cohesion 4. Inflexible/Flexible operating procedures 5. Poor/Excellent use of member resources 6. Unclear/Clear communications

7. Goals unaccepted/accepted by members

8. Independent/Interdependent authority relations

9. Low/High leadership participation

10. Low/High acceptance of minority views

Group can be considered as an open system: - Inputs:

o Tasks: Group effectiveness influenced by:

Complexity of task demands: task’s routineness, difficulty, information

requirements

Complexity of social demands: challenge in deciding co-operatively

what is to be done and how

Both types of complexity make performance more challenging but also lead to high satisfaction when successful

o Goals, rewards, resources: Group’s performance can suffer from:

Goals that are unclear, unchallenging, arbitrarily imposed, or focused

too much on individuals

Poorly designed reward systems that focus too much on individual

achievements

Inadequate budgets, poor facilities

Effective performance rests partly on having appropriate goals, well-designed rewards systems and adequate resources

o Technology: the means to get the work accomplished. Type of workflow

technology influences how people interact with each other

o Membership characteristics: ability, personality, status, diversity (see Ch.10)

o Group size:

Growth helps to a point by providing more people to share the work

but, beyond a point, advantages are countered by disadvantages of

communication and coordination problems, and by social loafing

Five to seven is effective for problem-solving

Odd number makes it easy to use majority voting for quick decisions

Even number preferred for careful deliberations when emphasis is on

consensus

- Throughputs: group process (how group members work together)

o Group dynamics: are the forces operating in groups that affect the way

members relate to and work w/ each other.

o Intergroup dynamics: are the relationships between groups that are co-

operating and competing w/ each other

o Homans describes groups as having two types of behaviour

Required behaviour: Behaviour that is formally defined and expected

by the organization

Emergent behaviour: Behaviour voluntarily performed by members

beyond formal job requirements; based on personal initiative

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o Concept of empowerment relies on unlocking potential of effective emergent

behaviours

o Cooperation between groups in an organization desirable but relationships

often characterized by competition:

Positive competition: enhances motivation

Negative competition: leads to greater focus on dislike for other group

than performance of tasks

o Ways to deal w/ -ve competition:

Refocus groups on common enemy or goal

Arrange direct negotiations between groups

Train members to work more cooperatively

Change reward systems to focus on contributions to organization and

cooperation, not win-lose

Increase interaction between groups

- Outputs: task performance, membership satisfaction, team viability.

Group Decision-Making: - 6 types:

o Decision by lack of response

o Decision by authority rule – manager, supervisor with higher “delegating” all

members

o Decision by minority rule

o Decision by majority rule

o Decision by consensus

o Decision by unanimity

- Advantages:

o More information

o More alternatives considered

o Better understanding and acceptance of decision

o Greater commitment to decision

- Disadvantage:

o Social pressure to conform

o Minority domination

o Time demands

- Potential Problem – Groupthink: tendency of group members of cohesive groups to lose

their ability to evaluate critically. To avoid groupthink:

o Assign role of “devil’s advocate” at meeting

o Impartial leader

o Subgroups work on same problem

o “second-chance” meetings

o Members discuss issues with outsiders and report back

How to improve group decision making: - Brainstorming: generate ideas through “free-wheeling” and no criticism

- Nominal group technique: highly structured approach to generating and prioritizing

ideas

- Delphi technique: series of questionnaires used to generate and evaluate ideas

- Computer-mediated decision-making

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Ch. 10 Team: small group of people with complementay skills who work together to achieve a common purpose that together they hold themselves accountable for. There are 3 types of teams:

- To recommend things: Temporary group (e.g., task force, ad hoc committee) to study

problem and recommend solutions

- To run things: Management teams with responsibility for leading other groups

- To make or do things: Perform ongoing tasks

Teamwork: Occurs when group members work together in ways that use their skills well to accomplish a puspose. High-performance teams characterized by:

- Sense of collective accountability

- Belief in team goals

- Strong core values

- General sense of purpose translated into specific performance objectives

- Right mix of technical, problem-solving and interpersonal skills

- Creativity

Diversity and team performance: - Homogeneous teams: quickly build harmonious relationships but may be limited in

terms of ideas, viewpoints, creativity

- Heterogeneous teams: have more stresses in development stages but better long-term

performance potential due to pool of information, talent, and perspectives

Team building approaches: - Formal retreat approach: Off-site intensive assessment and planning, often with

consultant

- Continuous improvement approach: Regular meetings by group committed to

monitoring group processes and making day-to-day changes to improve

- Outdoor experience approach: Members need teamwork to master variety of physically

challenging situations

Improving Team Processes: - New Members:

o New members are concerned about issues of:

Participation

Goals

Control

Relationships

o Profiles of typical entry problems:

Tough battler

Friendly helper

Objective thinker

- Sharing Responsibility for Group Needs:

o Important that all members know expectations of self and other members;

problems occur with uncertainty or conflicting expectations

o Role = set of expectations for a team member or person in a job

o Role ambiguity = uncertainty about expectations

o Role overload = too much work expected of individual

o Role underload = too little work expected of individual

o Roles and Role Dynamics:

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Role conflict: individual is unable to satisfy role expectations that

conflict with each other

Intrasender role conflict

Intersender role conflict

Person-role conflict

Interrole conflict

- Positive Norms:

o Norms = ideas or beliefs about how members of a group are expected to

behave; rules or standards of conduct for behaviour

o Functions of norms: Clarify expectations, make behaviour predictable, give

common sense of direction, reinforce team culture

o Potential danger of norms: Can work against organization’s best interests (e.g.,

“don’t work too hard”, “never do anything extra beyond your job description”)

Team Cohesiveness: the degree to which members are attached to and motivated to remain a part of the team. Members of highly cohesive groups:

- Value membership

- Try to maintain positive relationships with other members

- Are energetic when working on team activities

- Are not prone to absenteeism or turnover

- Are genuinely concerned about team performance

- Tend to satisfy a broad range of individual needs

Use of Teams in High-Performance Workplace: - Problem-solving teams:

o In employee-involvement teams, members meet regularly to examine work-

related problems and issues (e.g., better satisfy customers)

Effective use of workers’ knowledge

Gains commitment for implementing solutions

o Quality circle = special type of employee-involvement team that meets regularly

to focus on continuous improvement of quality operations

- Cross-functional teams: Members from different functions are brought together to work

on common task

o counters functional silos problem

o promotes lateral communication

o promotes integrative or total-systems thinking

o enhances problem-solving through more thorough information and power to

act quickly

- Virtual teams: Members linked together through networked computers (supported by

groupware)

o Advantages:

Allows meeting of people in different locations with diverse

background to exchange views and information, collaborate

Cost-effective and quick when face-to-face meetings impossible

Computer helps focus efforts on objective info, not emotion

o Disadvantages:

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Lack of direct personal contact can mean less social rapport and less

direct interaction among members

May increase risk in decision making

May have too much focus on the technology itself

- Self-managing teams:

o Are empowered to manage themselves on a day-to-day basis

E.g., scheduling, allocating tasks, training, evaluating performance,

selecting new members, quality control (many tasks traditionally

belonging to supervisor)

o 5 to 15 members, multiskilled (pay may be linked to extent of multiskilling)

o Also known as self-directed teams, empowered teams

o Benefits:

Improvements in productivity and quality

Flexibility

Faster response to change

Decreased absenteeism and turnover

Improved work attitudes, quality of work life

o Challenges:

Loss of managers

Adjustment to new expectations (by workers and remaining managers)

Not suitable for all organizations