Chapter 1 The Dynamic New Workplace

OVERVIEW OF THE NEW ECONOMY . A highly competitive global economy has created unparalleled opportunities and unprecedented uncertainties. . Smart people and smart organizations create their own futures. . Companies with a future are committed to people. . Companies with a future have high performance expectations and provide support ive work environments. . High performing companies gain extraordinary results from people.

WHAT ARE THE CHALLENGES OF WORKING IN THE NEW ECONOMY? . Intellectual Capital People are the ultimate foundations of organizational performance. Intellectual capital is the collective brainpower or shared knowledge of a workf orce that can be used to create value. A knowledge worker adds to the intellectual capital of an organization.

. Globalization National boundaries of world business are disappearing rapidly. Globalization is the worldwide interdependence of resource flows, product market s, and business competition that characterize the new economy.

. Technology Continuing transformation of the modern workplace through: The Internet, World W ide Web, Computers, Information technology Increasing demand for knowledge workers with the skills to fully utilize technol ogy.

. Diversity

Changing demographics are making the workforce increasingly diverse. A diverse and multicultural workforce both challenges and offers opportunities t o employers. Truly valuing diversity is a societal responsibility that is not easy to accompl ish.

. How diversity bias can occur in the workplace: +Prejudice- negative, irrational attitude (thoughts / thinking) towards minority groups +Discrimination- disadvantages minorities by denying them the full benefits of organizational membership (action) +Glass Ceiling Effect- existence of an invisible barrier that prevents women and minority workers from rising above a certain level of organizational responsibility

. Ethical expectations for contemporary businesses: Sustainable development and protection of the natural environment. Protection of consumers through product safety and fair practices. Protection of human rights, including employment policies and practices.

. Workplace pressures involving ethics toward human capital: Equal employment opportunity, Equity in compensation and benefits, Privacy and d ue process, Freedom from sexual harassment, Job security, Occupational health and s afety . Careers Core workers, contract workers, and part-time workers. People must be prepared to be any one of these types of workers. People must make sure that their skills are portable and of current value in emp loyment markets.

WHAT ARE ORGANIZATIONS LIKE IN THE NEW WORKPLACE? . Critical skills for success in the new workplace: Mastery, Contacts, Entrepren eurship, Love of technology, Marketing, Passion for renewal

. Organization A collection of people working together to achieve a common purpose. The purpose of any organization is to provide useful goods and/or services that return value to society and satisfy customer needs in order to justify continued existence.

. Organizations As Systems Composed of interrelated parts that function together to achieve a common purpos e.

+Organizations are Open Systems [organizations transform resource inputs from th e environment into product outputs (goods and services)] that interact with their environments. +Feedback from the environment tells an organization how well it is meeting the needs of customers and society.

. Organizational Performance .Value-added. is a very important notion for organizations. Value-added occurs when an organization, through it operations, adds value to th e original cost of resource inputs. When value-added occurs: Businesses earn a profit. Nonprofit organizations add wealth to society Productivity: A summary measure of the quantity and quality of work performance with resource utilization taken into account. Performance Effectiveness: A measure of task output or goal accomplishment. Performance Efficiency: A measure of the resource costs associated with goal accomplishment.

. Workplace changes that provide a context for studying management Pre-eminence of technology, Demise of .command-and-control., Focus on speed, Embracing networking, Belief in empowerment Emphasis on teamwork, New workforce expectations, Concern for work-life balance

WHO ARE MANAGERS AND WHAT DO THEY DO? . Importance of human resources and managers High performing organizations treat people as strategic assets. Managers have a special responsibility for ensuring that people are treated as strategic assets.

. A Manager is a person in an organization who directly supports and helps activ ate the work efforts and performance accomplishments of others. The people who managers help are the ones whose tasks represent the real work of the organization.

. Levels of Management Top Managers responsible for performance of an organization as a whole or for one of its larger parts. Middle Managers report to top managers while being in charge of relatively large departments or divisions. Team Leaders or Supervisors someone in charge of a small work group composed of no nmanagerial workers.

. Responsibilities of Team Leaders: Plan meetings and work schedules. Encourage high performance and teamwork. Clarify goals and tasks and gather ideas for improvement. Appraise performance and counsel team members. Recommend pay raises and new assignments. Recruit, develop, and train team membe rs

Inform team members about organizational goals and expectations. Inform higher levels of work unit needs and accomplishments. Coordinate with others teams and support organization as a whole . Types of Managers Line Managers are responsible for work activities that directly affect organizat ion s outputs. Staff Managers use technical expertise to advise and support the efforts of line workers. Functional Managers are responsible for a single area of activity. General Managers responsible for more complex units that include many functional areas. Administrators work in public and nonprofit organizations.

. Managerial Performance and Accountability Managers set the conditions through which individuals and groups contribute to a chieving organizational goals. Accountability is the requirement of one person to answer back to another and sh ow results achieved in assigned work responsibilities. Effective managers fulfill performance accountability while helping others to ac hieve high performance outcomes and experience satisfaction in their work

. Quality of Work Life (QWL) An indicator of the overall quality of human experiences in the workplace. QWL indicators: Fair pay, Safe working conditions, Opportunities to learn and us e new skills, Room to grow and progress in a career, Protection of individual rights, Pride in work itself and in the organization

. High Performing Managers Build working relationships with others. Foster Teamwork. Help others develop their skills and performance competencies. Create a work environment that is performance-driven and provides satisfaction f or workers.

. The Organization as an Upside-Down Pyramid Each individual is a value-added worker. A manager s job is to support workers rts. The best managers are known for helping and supporting.

effo

MANAGEMENT PROCESS . Management is the process of planning, organizing, leading, and controlling th e use of resources to accomplish performance goals.

. Functions of Management Planning: The process of setting objectives and determining what actions should be taken to accomplish them. Organizing: The process of assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans. Leading: The process of arousing people s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives. Controlling: The process of measuring work performance, comparing results to obj ectives, and taking corrective action as needed.

. Managerial Activities and Roles Informational Roles: giving, receiving, and analyzing of information. Interpersonal Roles: interactions with persons inside and outside the work unit. Decisional Roles: using information to make decisions in order to solve problems or address opportunities.

. Characteristics of Managerial Work Managers work long hours. Managers work at an intense pace. Managers work at fragmented and varied tasks. Managers work with many communication media. Manage rs work largely through interpersonal relationships.

. Managerial Agendas and Networks Agenda setting: Development of action priorities for their jobs. Include goals and plans that span long and short time frames. Networking: Process of building and maintaining positive relationships with peop le whose help may be needed to implement one s work agendas.

ESSENTIAL MANAGERIAL SKILLS AND COMPETENCIES . Essential Managerial Skills Skill the ability to translate knowledge into action that results in desired perfo rmance. Technical ability to apply a special proficiency or expertise to perform particula r tasks. +most important at lower levels of management (formal education, training & job experience) Human Skill ability to work well in cooperation with others. +consistently important across all managerial levels Conceptual Skill ability to think critically and analytically to solve complex pro blems. +gain in relative importance for top managers

. Managerial Competency A skill-based capability that contributes to high performance in a management jo b. Managerial competencies are implicit in: . Planning, organizing, leading, and controlling. . Informational, interpersonal, and decisional roles. . Agenda setting and networking.

. Competencies for Managerial Success: Communication, Teamwork, Self-management, Leadership, Critical Thinking, Professionalism

Chapter 3 Information and Decision Making

INFORMATION AND KNOWLEDGE BASIC DEFINITIONS: . Information: Data made meaningful and useful for decision making. . Intellectual Capital: Shared knowledge of a workforce that can be used to crea te wealth. . Computer Competency (or literacy): Ability to understand and use computers. . Information Competency (or literacy): Ability to utilize computers and informa tion technology for decision making.

. Information Technology: The combination of computer hardware, software, networ ks, and databases that allow information to be shared, stored, and manipulated.

. Progressive Organizations Are responding to the growing importance of information technology with speciali zed organizational units headed by a chief knowledge officer or chief information of ficer. Use information technology to compete more effectively in uncertain environments .

. Intraorganizational implications of using information technology: Facilitation of communication and information sharing. Flattening of organizational structures. Faster decision making. Increased coordination and control. Structural flexibility.

. Extra-organizational implications of using information technology: Helps organizations take care of customers, and work well with resource supplier s. Helps build and manage relationships with strategic partners.

. Electronic Commerce [E-Commerce / E-Business] -uses I.T. to support on-line commercial transactions, -business form in w/c commercial transactions take place through the use of adva nced I.T., including special telecommunications and computer mediation

Step 1: establish a web site and then using the site to publish information elec tronically Step 2: advancing the web site to .self-service. status [check account status] Step 3: further advancing web site to allow transactions [buying & selling of me rchandise, managing resource supply & product distribution chains]

WHAT ARE THE CURRENT DIRECTIONS IN INFORMATION SYSTEMS? . Information Systems (I.S.) -use I.T. to collect organize & distribute data for use in decision making . Useful information shares the following characteristics: Timeliness, Quality, Completeness, Relevance, Understandability

. Information needs of organizations Information exchanges with the external environment Gather intelligence information & Provide public information Internal information exchanges: Top, Middle & 1st level management

. Information systems success factors: Technical quality of the system. Participation and involvement of users in systems design. Management support of the system

. Decision Support Systems (DSS): Use special software to allow people to intera ct directly with a computer to organize and analyze data for solving complex and sometimes unstructured problems.

. Group decision-support systems (GDSS): Interactive computer-based information systems that facilitate group efforts to solve complex and unstructured problems.

. Artificial intelligence (AI): Computer systems with capacity to reason the way people do. . Expert systems: Software systems that use AI to mimic the thinking of human ex

perts, thereby offering consistent and .expert. advice to decision makers.

. Intranets: Use special software to allow persons working in various locations within the same organization to share databases and communicate electronically. . Enterprise-wide network: Use fully integrated IT to move information quickly a nd accurately within an organization. . Extranets: Use the public Internet to allow communication between the organiza tion and elements in its external environment.

. Management Information Systems: Use information technology to meet the informa tion needs of managers in making decisions. Advantages of appropriate MIS utilization : POLC

HOW IS INFORMATION USED FOR DECISION MAKING? . A Problem is the difference between an actual and a desired situation. Performance Deficiency- actual performance is less than desired Performance Opportunity- actual performance is better than anticipated

. Problem Solving is the process of identifying a discrepancy between an actual and desired state of affairs and then taking action to resolve it. . Decision is a choice among alternative course of action.

. Programmed Decisions Solutions readily available from past experiences. Best applied to routine probl ems. Commonly applied to resource use and allocation decisions.

+Structured Problems- familiar, straightforward & clear in its info requirements

. Non-Programmed Decisions Develop novel solutions to meet the demands of a unique situation. Problems that are commonly faced by higher-level management.

Information requirements are high. Decisions involve considerable human judgment . +Unstructured Problems- involves ambiguities an info deficiencies & often occur as new or unexpected situations.

. Crisis Decision Making A Crisis involves an unexpected problem that can lead to disaster if not resolve d quickly and appropriately. An extreme type of nonprogrammed decision must be made. Crisis management may be the ultimate test of problem-solving capabilities. Proactive managers develop basic contingency plans for dealing with likely crisi s situations.

. Decision Conditions Certain Environments: Offers complete info on possible action alternatives and t heir consequences. Risk Environments: Lack complete info, but offers .probabilities. of the likely outcomes for possible action alternatives. Uncertain Environments: Information is so poor that it s difficult even to assign probabilities to the likely outcomes of alternatives

. How Managers Approach Decisions: Problem Avoiders: Inactive in decision making Problem Solvers: Reactive in gathering information and solving problems Problem Seekers: Proactive in anticipating problems before they occur

. How Managers Approach Decisions: Systematic Thinking: Approaching problems in a rational, step-by-step, and analy tical fashion. Intuitive Thinking: Approaching problems in a flexible and spontaneous fashion. Multidimensional Thinking: Applying both intuitive and systematic thinking [capa city to view many problems at once, in relationship to one another, and across long & sh ort time

horizons]

. How Managers Approach Decisions: Strategic Opportunism: The ability to remain focused on long-term objectives whi le being flexible enough to resolve short-term challenges in a timely manner.

HOW DO MANAGERS MAKE DECISIONS? . FIVE-STEP DECISION-MAKING PROCESS:

. Step 1 Identify And Define The Problem Problem symptoms signal a performance deficiency or opportunity. Problem finding focuses on identifying performance gaps and their causes. Avoid the following: Defining the problem too broadly or too narrowly. Focusing on symptoms instead of causes. Choosing the wrong problem.

. Step 2 Generate And Evaluate Possible Solutions Avoid the following: Selecting a particular solution too quickly. Choosing a con venient alternative that may have damaging side effects. Criteria for evaluating alternatives (Cost Benefit Analysis): Benefits, Costs, T imeliness, Acceptability, Ethical soundness

. Step 3 Choose A Solution And Conduct The .Ethics Double Check. Classical Decision Model: describes how managers should ideally make decisions u sing complete information. Results in an optimizing decision [choose an alternative t hat gives the absolute best solution to a problem] Administrative Decision Model: Views manager as acting in situations of limited information and bounded rationality. Results in a satisficing decision [choosing the first s atisfactory alternative that comes to your attention]

. Step 4 Implement The Solution Establish appropriate action plans. Avoid lack-of-participation error. Managers need to have willingness and ability to implement action plans.

. Step 5 Evaluate Results Involves comparing actual and desired results. Positive and negative consequences of chosen course of action should be examined . If actual results fall short of desired results, return to earlier steps . Types of Heuristics For Simplifying Decision Making: Availability Heuristic: People use information .readily available. from memory a s a basis for assessing a current event or situation. Representativeness Heuristic: People assess the likelihood of something happenin g based upon its similarity to a stereotyped set of occurrences. Anchoring and Adjustment Heuristic: People make decisions based on adjustments t o a previously existing value or starting point.

. Escalating Commitment The tendency to continue to a course of action, even though it s not working. . Ways To Avoid The Escalation Trap: Set advance limits. Make your own decisions . Carefully determine why you are continuing a course of action. Reminds yourself of the costs. Watch for escalation tendencies.

. Advantages of Group Decision Making: Greater amounts of info, knowledge, and expertise. Increased commitment to final plans More action alternatives are considered. Greater understanding and acceptance of outcomes. . Disadvantages of Group Decision Making: Pressure to conform, Minority domination & Decision making takes longer

. Ethical Decision Making Any decision should meet .ethics double check.. How would I feel if my family finds out about this decision? How would I feel if this decision were published in the local newspaper? Should be done during step 3 of decision-making process. May result in better decisions and prevention of costly litigation.

KNOWLEDGE MANAGEMENT AND ORGANIZATIONAL LEARNING . Knowledge Management: Processes through which organizations develop, organize, and share knowledge to achieve competitive advantage. . Chief Knowledge Officer (CKO) Energizes learning processes. Manages organization s intellectual assets . Knowledge management requires understanding of and commitment to IT.

. Organizational Learning- people, values & systems support continuous change an d improvement based upon the lessons of experience . Lifelong Learning- involves a personal commitment to continuously seek learnin g opportunities in one s work . Core Ingredients of Learning Organizations Mental models, Personal mastery, Systems thinking, Shared vision & Team learning

. Creativity The display or use of ingenuity and imagination to create a novel approach to th ings or a unique solution to problems. Essential for a learning organization.

Business Organization- study of management, importance of management, set the fr amework for the course

Marketing- defining, anticipating, creating & fulfilling customer needs and want s at the right time, place, and price

Marketing Management- concerned with decisions and policies relating to product, price, promotion, place (distribution), and marketing research.

Marketing Mix- set of controllable marketing variables that the firm blends to p roduce the response it wants in the target market. The broad appointment of effort and the integral combination of the 4 P s and market research

The (4) P s of Marketing . Product, Price, Place & Promotion *Product- goods and services the organization offers the market *Promotion- activities that communicate the merits of the product and persuade t he target market to buy it *Price- amount of money customers must pay to obtain the product *Place- activities that make the product available to the target market

PRODUCT LINE- entire range of products / services being made available not only as physical units or items of service but also in terms of total satisfaction to the buyer through possession or use

Product line (San Miguel Corporation) . Beer, Non-alcoholic malt beverages, Wine

s and spirits, Juice and fruit drinks, Bottled water, Basic meat products, Semi-processed meat products, Processed meat s, Butter, Cheese, Margarine, Glass packaging, Metal, Paper packaging, Plastics, Composite packaging, Paper packagin g, Composite packaging

Basic Product Marketing Strategy +Market segmentation +Product differentiation + Planned model obsolescence

PRICE- value of a product or service, quantified in peso terms, which yield an o ptimum profit for the firm

FACTORS AFFECTING PRICING DECISIONS *Internal Factors +Marketing Obj. +Marketing Mix Strategy +Costs (Marketing and Production) +Organ ization and Pricing *External factors +Nature of market +Demand +Competitor s Prices and Offers +Economy +Government Act ion / Policies

PRICING APPROACHES *Cost-based [Fixed and variable costs + target profit] *Buyer-based. [Perceived value pricing--How much is the potential customer willi ng to buy the product?] *Competition-based. [Going rate, or sealed bid for government contracts]

PRICING STRATEGIES (Pricing Innovative Products, Product-Mix Pricing, Pricing Ad justment Strategies) *Pricing Innovative Products +Market Skimming - Set high prices initially to skim maximum revenue from the se gments willing to pay the high price +Market Penetration - Set low price to grab a portion of the market

*Product-Mix Pricing

+Product Line - Develop a line of products with different prices +Optional Product - Offer to sell optional or accessory products along with main product +By-Product - Pricing of the main product will be affected considering the stori ng and dealing costs (e.g. processed meat) +Product-Bundle - develop a line of products with different prices +Captive Product - offer to sell optional or accessory products along with main product

*Price Adjustment Strategies +Discount Pricing & Allowances- Cash discount for prompt payment; Quantity disco unt; Functional discounts; Seasonal discounts - Christmas, back-to-school, Valentine s Day; Allowances - trade-ins; pr omotional +Discriminatory Pricing- Cash discount for prompt payment; Quantity discount; Fu nctional discounts; Seasonal discounts Christmas, back-to-school, Valentine s Day; Allowances - trade-ins; promotional +Psychological Pricing- Reference prices; Small differences in price (e.g. P1000 vs. P999.95) +Promotional Pricing- Temporarily pricing the product below the list price and s ometimes even below cost (e.g. bargain, special event, longer warranties, free) +Geographical Pricing- FOB origin; Uniform delivered pricing; Zone pricing; Basi ng point; Freight absorption PROMOTION- act. that communicate the merits of the product and persuade the targ et market to buy it (improve sales)

TYPES OF PROMOTION +Personal Selling +Advertising- print ads, radio ads, TV commercials, movie ads, billboards (used to inform, persuade & remind) +Sales Promotions- incentives to encourage purchase or sale of a product or serv ice (displays, demonstrations, contests) +Public Relations- Participation in community betterment and attention towards b etter appreciation by external and internal groups of what the company is and what it is doing, without any attempt at selli ng. It Includes obtaining favorable publicity, building up a good corporate image, handling and heading off unfavorable rumors, stories, and events

PLACE (DISTRIBUTION)- Corporate activities that make the product available to th e target market *Producers Distribution Policy +General / Extensive +Selective +Exclusive (one distributor to stock and sell th e product) +Leasing or Licensing (manufacturing the product with the use of same process un der same brand in a given territory)

BASIC CHANNELS FOR MARKETING CONSUMER GOODS +Producer direct to consumer +Producer to retailer to consumer +Producer to wholesaler to retailer to consumer +Producer to agent/distributor t o wholesaler to retailer to consumer

BASIC CHANNELS FOR MARKETING INDUSTRIAL GOODS +Producer direct to industrial consumer +Producer to branch office to industrial consumer +Producer to industrial distributor to industrial consumer +Producer to broker o r sales agent to industrial consumer

MARKET RESEARCH- systematic and organized activity of gathering and analyzing ma rket data to arrive at decisions that will affect the firm s future

AREAS OF MARKETING RESEARCH +Research on Products / Services +Research on Market s

MARKETING RESEARCH METHODS +Observation- watching, measuring or counting without direct questioning +Survey- use of interviews and questionnaire +Experiment- actual tests of products or methods under controlled conditions

OTHER FORMS OF MARKETING +Organization Marketing- consists of activities undertaken to create, maintain,

or change attitudes and behavior of target audiences toward an organization +Person Marketing- consists of activities undertaken to create, maintain, change attitudes and behavior toward particular persons +Social Idea Marketing- the design, implementation and control of programs seeki ng to increase the acceptability of a social idea, cause or practice in a target group

Chapter 4 Historical Foundations of Management

CLASSICAL APPROACHES TO MANAGEMENT *Scientific Management - Frederick Taylor Develop for every job: rules of motion, standardized work implements, proper wor king conditions Carefully select, train and support workers

*Administrative Principles +Henri Fayol (similar to 4 fnxns of management) foresight - complete plan of action for future organization - provide resources to implement plan coordination - fit diverse efforts together control - make sure things happen ac cording to plan command - lead, select, evaluate workers to get the best work

+Mary Parker Follett (organization as communities) groups are mechanisms through which individuals can combine their talents for a greater good manager s job is to help others in organizations cooperate and achieve an integrat ion of interests

*Bureaucratic Organization - Max Weber Bureaucracy (intentionally rational and efficient form of org., based on princip les of logic, order and legitimate authority) Defining Characteristics (division of labor, hierarchy of authority, rules and p rocedures, impersonality) Negative Connotation (associated with possible disadvantages of bureaucracy)

HUMAN RESOURCE APPROACHES TO MANAGEMENT *Hawthorne Studies initial study to examine the relationship of economic incentives and physical co nditions on worker output relationship was not supported .psychological factors. interfered with experiment Findings in final study (people will restrict output to avoid displeasure from t he group) Lessons (shift toward social and human concerns as keys to productivity)

*Hawthorne Effect (people who are singled out for special attention perform as e xpected)

*Human Relations Movement (managers who use good human relations will achieve pr oductivity) Maslow s Theory of Human Needs (physiological, safety, social, esteem, self actual ization) Need is a physiological or psychological deficiency a person feels the compulsio n to satisfy Deficit Principle (satisfied need is not a motivator of behavior) Progression Principle (a need becomes a motivator once the need below it is sati sfied)

*McGregor s Theory X and Theory Y Managers (managers create self-fulfilling prophe cies) Theory X- believe workers dislike work, lack ambition, irresponsible, resistant to change, prefer to be led Theory Y- believe workers willing to work, capable of self control, responsible, imaginative and creative, self-directed Theory X managers create dependent and reluctant workers Theory Y managers create workers who perform as expected with initiative and hig h performance

*Argyris

Theory of Personality and Organization

management practices in traditional hierarchical organizations are inconsistent with mature adult

personalities

QUANTITATIVE APPROACHES TO MANAGEMENT *Management Science Foundations (Scientific applications of mathematical techniq ues to management problems) +mathematical forecasting, inventory modeling, linear programming, queuing theor y, network modes, simulation

MODERN APPROACHES TO MANAGEMENT *Systems Thinking System (collection of interrelated parts that function together to achieve a com mon purpose) Subsystem (smaller component of a larger system) Open Systems (org. that interact with their env. in the continual process of tra nsforming resource inputs into outputs) External Environment (source of both resources and customer feedback, impact on operations and outcomes) Boundary Spanners (dept. whose fnxns include working w/ outsiders & staying info rmed about external env. dev t)

*Contingency Thinking match managerial responses with: opportunities unique to different situations & no longer one best way to manage

TRENDS AND DIRECTIONS *Quality and Performance Excellence . Quality (ability to meet customer needs 10 0% of the time) Total quality management (TQM) [comprehensive approach to continuous quality imp rovement for a total organization]

*Global Awareness (pressure for quality and performance excellence is created by a highly competitive global economy)

Business Functions of an Organization *Marketing- defining, anticipating, creating, and fulfilling customer needs and wants at the right time, place, and price *Production- involves the transformation of organizational resources into finish ed goods or services *Finance- refers to funds generation, funds allocation, capital structuring, and profit supervision *HRM (Human Resource)- refers to the procurement, development, compensation and labor relations of personnel

Common Financial Statements: +Balance Sheet description of the organization in terms of its assets, liabiliti es, and net worth +Income Statement interval of time summary of the organization s financial performance over a given

+Statement of Cash Flow summary of an organization s financial performance that sh ows where cash or funds came from during the year and where they were applied +Budget formal quantitative statement of resources allocated for planned activit ies over stipulated periods of time

Theory X and Theory Y +Theory X - The assumption that employees dislike work, are lazy, dislike respon sibility, and must be coerced to perform +Theory Y - The assumption that employees like work, are creative, seek responsi bility, and can exercise self-direction

Maslow s Hierarchy of Needs . Self-Actualization, Esteem, Social, Safety, & Physio logical

Chapter 6

Ethical Behavior

*Ethics (code of moral principles, sets standards of good & bad and right & wron g) *Ethical Behavior (what is accepted as .good. and .right. in the context of the governing moral code) +not illegal is not necessarily ethical +personal values help determine individu al behavior

*Alternative Views of Ethical Behavior +Utilitarian - greatest good to the greatest number of people +Individualism - primary commitment is to one s long term self-interests +Moral-rights - respect the fundamental rights of people +Justice - ethical decisions treat people fairly according to rules

*Cultural Issues in Ethical Behavior +Cultural Relativism (ethical behavior is always determined by cultural context) +Ethical Imperialism (attempt to externally impose one s ethical standards on othe rs)

*Companies Respect Core or Universal Values (Respect for human dignity, Respect for basic rights, Be good citizens)

*Ethical Dilemma (situation that requires choosing a course of action) offers potential for personal and/or organizational benefit may be considered une thical

*Rationalizations for Unethical Behavior +Convincing oneself that: -behavior is not really illegal, behavior is really in everyone s best interests, nobody will ever find out, org. will .protect. you

*Factors Influencing Ethical Behavior (Person, Organization, Environment)

*Maintaining High Ethical Standards +Ethics Training (structured programs that help participants to understand ethic al aspects of decision making) +Whistleblowers (expose misdeeds of others to, preserve ethical standards, prote ct against wasteful, harmful, illegal acts) -Barriers to whistleblowing (strict chain of command, strong work group identiti es, ambiguous priorities +Top Management Support (model appropriate ethical behavior) +Formal Codes of Ethics (official written guidelines on how to behave)

*Corporate Social Responsibility (Obligation of the org. to act in ways that ser ve both its own interests and that of stakeholders

*Social Responsibility and Corporate Performance +Classical View (management s only responsibility is to maximize profits) +Socioeconomic View (management must be concerned about the broader social welfa re, not just profits)

*Social Responsibility Audits (Evaluate corporate social performance by asking: Economic, Legal, Ethical, Disc retionary Responsibility met?)

*Social Responsibility Strategies +Obstructionist - economic priorities +Accommodative - do the minimum ethically required +Defensive - do the minimum legally required +Proactive - take leadership in soc ial initiatives

*Government Regulation of Business +Governmental Agencies that monitor compliance with government mandates +Complex Legal Environment -Areas of government intervention: occupational safety and health, fair labor practices, consumer protection, envir

onmental protection

CHAPTER 7 PLANNING - TO SET THE DIRECTION

PLANNING AS A MANAGEMENT FUNCTION +Planning- process of setting objectives and determining what should be done to accomplish them +Objectives- specific results that one wishes to achieve *To plan is to decide what to accomplish and how to do it -define objectives -evaluate accomplishments relative to objectives -develop premises regarding future conditions -analyze possible action alternati ves -implement plan and evaluate results

*Benefits of Planning -more focus and flexibility -improved coordination -better control -better time management -action orientation (results, priority, advantage, & change ORIENTED) +Focus- org knows what it does best, knows the needs of its customers and knows how to serve them well +Flexibility- org that is willing and able to change and adapt to shifting circu mstances and operates w/ an orientation towards the future rather than the past or present.

TYPES OF PLANS IN ORGANIZATIONS *Short-Range and Long-Range Plans +Short-Range = 1 year or less . Lower Management (focus more on short-run activi ties that serve long-term objectives) +Intermediate-Range Plans = 1-2 years . +Long-Range = 3 or more years . Top Management (sets long-range plans & directio ns for the organization as a whole)

*Strategic and Operational Plans +Strategic Plans- addresses long term needs and set comprehensive action directi ons for an organization or subunit -responsibility of Top Management +Operational Plans (limited in scope, define what needs to be done in specific a reas to implement strategic plans) (production, financial, facilities, marketing, human resources PLANS)

*Policies and Procedures . Standing Plans (used more than once)

+Policy is a broad guideline for making decisions and taking action in specific circumstances +Procedures / Rules are plans that describe exactly what actions are to be taken in specific circumstances [SOP s]

BUDGETS AND SCHEDULES . Single-Use plans (Budgets, Project Schedules, & Business Plan) {used only once} *Budgets (commit resources to activities, projects, or programs, help clarify an d reinforce action priorities, facilitate the evaluation and control of results, types are fixed, flexible, and zero-based) -Fixed Budget (allocates resources on a single estimate of costs) -Flexible Budget (allows allocation of resources to vary in proportion with vari ous levels of activity) -Zero-Based (allocates resources to a project as if it were brand new)

*Project Schedules (single-use plans that identify the activities required to ac complish a specific major project / set of tasks) .Gantt Chart (visually display the expected progress of each required activity f rom start to finish in a large project) *Business Plan (typically used for new businesses, describes details necessary t o set direction and get financing) APPROACHES TO PLANNING . Inside-Out VS. Outside-In Planning +Inside-Out Planning (focus future effort on what one is already doing, but try to improve) +Outside-In Planning (look to external environment for opportunities)

TOP-DOWN VERSUS BOTTOM-UP PLANNING *Top-Down (senior management sets broad objectives, ensures common direction, ca n fail in implementation due to lack of lower level commitment) *Bottom-Up (initiative that begins at lower levels of the organization, potentia l to generate high commitment, does not define an integrated direction)

*Best Planning Approach (begin at top, proceed in a participatory way)

*Contingency Planning (identifying alternative courses of action if and when ori ginal plan is inadequate)

PLANNING TOOLS AND TECHNIQUES *Forecasting (assumptions about what will happen in the future, part of a good p lan, ultimately relies on human judgment) +Types of forecasting (qualitative, quantitative, econometric modeling, statisti cal surveys)

*Scenario Planning (identifying alternative future states of affairs, plans made for each scenario, increases org s flexibility)

*Benchmarking (use of external comparisons to better evaluate one s current perfor mance, identify possible actions for the future, incorporate successful ideas into one s own organization) *Participative Planning (requires that workers who will be affected be included in the planning and/or implementation) +Role of Staff Planners (lead and coordinate planning system, help promote plann ing throughout organization, sometimes used as advisors to hire managers)

MANAGEMENT BY OBJECTIVES (MBO) *MBO (structured process of regular communication, supervisor and worker jointly set performance objectives & jointly review results)

*Formal Agreement (worker s performance objectives for a specific time period, pla ns by which they will be accomplished, standards for measuring results, procedures for reviewing results)

*Advantages (clearly focuses employee work efforts, clearly focuses manager s work efforts regarding areas of

support, relationship building between manager and employee, employee participat es in decisions that affect work)

*Performance Objectives (improvement, personal development, maintenance)

*Performance Objective Criteria (specific, time defined, challenging, measurable )

*How To Make MBO Work (hire best people, work with them to set challenging perfo rmance objectives, give best possible support, hold employee accountable)

*Pitfalls To Avoid (tying MBO to pay, focusing too much attention on easily quan tifiable objectives, requiring excessive paperwork, have managers tell workers their objectives)

*Input Standard- effort put in *Output Standard- quality & time

CHAPTER 9 CONTROLLING TO ENSURE RESULTS

CONTROLLING AS A MANAGEMENT FUNCTION +Controlling- process of measuring performance and taking action to ensure desir ed results -to make sure plans are fulfilled and that actual performance meets or surpasses the objectives -sees to it that the right things happen, in the right way, and at the right tim e *Steps in the Control Process Step 1: Establishing Objectives and Standards +Types of Standards -Output (measure results in terms of performance criteria) -Input (measure effor t in terms of

amount of work)

Step2: Measuring Actual Performance (goal is accurate measurement of output and/ or input standards)

Step 3: Comparing Results with Objectives and Standards +Comparing Results with Objectives and Standards (Historical Comparison, Relativ e Comparison, Engineering Comparison) Need For Action = Desired Performance Actual Performance

Step 4: Taking Corrective Action +Management by Exception [practice of giving priority attention to situations th at show the greatest need for action] (Problem Situation {actual performance is below standard} / Opportunity Situation{actual performance is above standard)

*Characteristics of Effective Controls (strategic and results oriented, understa ndable, encourage self-control, timely and exception oriented, positive in nature, fair and objective, flexible)

TYPES OF CONTROLS *Feed forward (Preliminary) Controls (ensure obj. are clear, proper directions a re established, right resources are available) *Concurrent (Steering) Controls (monitor ongoing operations to make sure they ar e being done according to plan, focus on quality of task activities during the work process) *Feedback (Post action) Controls (take place after work is completed, focus on q uality of end results {evaluation, surveys} *Internal Versus External Control +Internal (allows motivated individuals to exercise self-discipline in fulfillin g job expectations) [self-control] +External (occurs through personal supervision & formal administrative systems s uch as rules & procedures)

ORGANIZATIONAL CONTROL SYSTEMS *Management Process Controls (strategy and objectives, policies and procedures, selection and training, performance appraisal, job design and work structures, performance modeling, per formance norms, organizational culture)

*Compensation and Benefits (pay-for-performance, merit pay, fringe benefits) {ac ts as a control to get the best employees}

*Employee Discipline Systems +Discipline- act of influencing through reprimand +Progressive Discipline (achieve compliance with organizat al expectations, use le ast extreme amount of reprimand possible) +Progressive Discipline- process of tying reprimands to the severity & frequency of misbehavior

*Information and Financial Controls (liquidity, leverage, asset management, prof itability) . FINANCIAL RATIOS

OPERATIONS MANAGEMENT AND CONTROL *Inventory Control (economic order quantity, minimize two costs {ordering, carry ing}, Just-In-Time scheduling) +Economic Order Quantity- method that involves ordering a fixed number of items every time an inventory level falls to a predetermined point. When this point is reached, a decision is automa tically made to place a standard order. +Just-In-Time Scheduling (JIT)- try to reduce cost and improve workflow by sched uling materials to arrive at a work station or facility .just in time. to be used. This minimizes c arrying costs, since no inventory is maintained materials are ordered or components produced only as nee ded. Help maximize use of space & quality of results. *Quality Control (checking processes and services to ensure that they meet high standards)

+Statistical Quality Control . Control Chart {upper and lower control limits}

CHAPTER 10 ORGANIZING TO CREATE STRUCTURES

ORGANIZING AS A MANAGEMENT FUNCTION *Organizing- process of arranging people and other resources to work together to accomplish a goal. Involves both creating a division of labor for tasks to be performed and then coordinatin g results to achieve a common purpose. *What is Organization Structure? (system of tasks, workflow, reporting relations hips, and communication channels that link together workgroups)

*Formal Structure (official working relationships often represented by an organi zational chart)

*Informal Structure (unofficial working relationships, important in understandin g organizations, sometimes work against best interest of organizations) . Executive Assistant (Gate Keeper to the CEO) . unofficial, but wields the power

TRADITIONAL ORGANIZATION STRUCTURES *Functional (people performing similar tasks are formally grouped together, work ers share technical expertise, interests, and responsibilities) +Advantages of Functional Structures (concentration, no overlapping of work, eco nomies of scale, task assignments consistent with expertise, high-quality technical problem solving, i n-depth training and skill development, clear career paths) +Disadvantage of Functional Structures (functional chimney problem, lack of prob lem solving across functions) Functional Chimney (main disadvantage)- lack of communication, coordination & problem solving across functions

*Divisional (groups together employees who work on the same product or service i

n the same geographic area) +Advantages of Divisional Structures (respond to environmental change, more flex ibility, improved coordination, clear points of responsibility, expertise focused on specific cust omers, products, and regions, greater ease in restructuring) +Disadvantages of Divisional Structures (expensive because there are several man agers / workers, duplication of resources & efforts, reduce economies of scale, increase costs through duplicati on of resources across divisions, create unhealthy rivalries) . Product (group together jobs and activities working on a single product or ser vice) . Geographical (Area) (adjust to the needs of that geographical area / market) . Customer (special needs / requests / demands of different customers) . Process (group together jobs and activities that are related to one another an d collectively create something of value) -customer processing / order relationship . concentrate on the process

*Matrix (combination of functional and divisional structures approaches to empha size project or program teams, used in: manufacturing, service industries, professional fields, nonprofit secto r) +Advantages of Matrix Structure (working as a team, better interfunctional coope ration, increased flexibility in restructuring, better customer services, better performance accountability, impr oved decision making, improved strategic management ) +Disadvantages of Matrix Structures (report to 2 bosses, increased costs, too ma ny meetings, two-boss system is susceptible to power struggles, workers may suffer task confusion, focused team loyalties to the detriment of organization)

DEVELOPMENT IN ORGANIZATION STRUCTURES *Team Structures (horizontal, wide, flat, cross functional) . TALL (Functional S tructure) VS. FLAT (Team Structure) +Team Structure- users permanent & temporary cross-functional teams to improve l ateral relations and

accomplish tasks +Cross-Functional Team- brings together members from different functional depart ments +Advantages of Team Structures (break down barriers between operating department s, boost morale, improve speed and quality of decisions) +Disadvantages of Team Structures (conflicting loyalties among members, spend a lot of time in meetings)

*Network Structures (central core that is linked through networks of relationshi ps with outside suppliers of essential services, boundary less organizations, virtual corporations) +Advantages of Network Structures (operate with fewer full-time employees, reduc ed overhead, increased operating efficiency, work together across great distances instead of face-to-fa ce) +Disadvantages of Network Structures (coordination of the entire system of relat ionships)

ORGANIZING TRENDS IN THE MODERN WORKPLACE +Shorter Chains of Command (organizations are reducing levels of management)

+Less Unity of Command (increases in cross-functional teams, task forces, and ho rizontal structure)

+Wider Spans of Control (chains of command are shortened, managers have responsi bility for larger # of subordinates) - # of people reporting to a higher rank . Trend Now: wider span of control [10 0 rank & file employees per manager]

*More Delegation and Empowerment Delegation (assigns responsibility, grants authority to act, creates accountabili ty) +Delegation- process of distributing and entrusting work to other persons [respo nsibility, authority, accountability] Empowerment (freedom to contribute ideas, increases job satisfaction, better job performance)

*Decentralization with Centralization (empowerment allows for more decentralizat ion, advances in information technology allow for retention of centralized control) +Centralization- concentration of authority for most decision at the top level o f an organization +Decentralization- dispersion of authority to make decisions throughout all leve ls of the organization

*Reduced use of Staff (specialized, personal) . better line (staff function) [li ne manager-directly]

CHAPTER 11

ORGANIZATIONAL DESIGN & WORK PROCESSES

Directions for Change (Shift From :)+Vertical to Horizontal Structure +Authority Driven to Task Driven

Essentials of Organizational Design *BUREAUCRATIC- Mechanistic / Vertical in Nature {tall structures . banking / ind ustry} Based on Logic, Order, and Legitimate Use of Formal Authority. Features Clear-Cu t Division of Labor, Strict Hierarchy of Authority, Formal Rules & Procedures, Promotion Based On Com petency +Mechanistic Designs- Highly Bureaucratic, More Centralized Authority, Many Rule s & Procedures, Precise Division of Labor, Narrow Spans of Control, and Formal Means of Coordination

*ADAPTIVE- Organic / Horizontal in Nature {flat structure/decentralized . high-t echnology business} -Operate With Minimum of Bureaucratic Features, Encourage Worker Empowerment -Based on Team & Network Structures, Operate w/ Organic Designs +Organic Designs- More Decentralized Authority, Fewer Rules & Procedures, Less P recise Division of Labor, Wider Spans of Control and More Personal Means of Coordination

Contingency Factors Influence Organizational Design *ENVIRONMENT +Certain- relatively stable, predictable elements {Bureaucratic}

+Uncertain- more dynamic, less predictable elements {Adaptive}

*STRATEGY .structure follows strategy. +Stability Oriented- is supported by bureaucratic organizations using mechanisti c designs {Bureaucratic} +Growth Oriented- strategy is supported by adaptive organizations using organic designs {Adaptive}

*TECHNOLOGY- combination of knowledge, equipment, and work methods used to trans form resource inputs into organization outputs Core Manufacturing Technology +Small-Batch Production- Custom products made by highly skilled workers {Adaptiv e} +Mass Production- large number of uniform products made in efficient manner {Bur eaucratic} +Continuous-Process Production- few products made by continuously feeding raw ma terials through a highly automated production system {Adaptive}

*SIZE & LIFE CYCLE- Organizational Life Cycle {org. passes through different sta ges of growth over time} +Birth, Youth, Mid-life, & Maturity

*PEOPLE

*Subsystems- such as dept. or work unit headed by a manager, operate as smaller parts of larger organizations. Work of each subsystem supports the work of others. Their work serves the needs of the larger org.

Work Process Design *Process Reengineering- systematic and complete analysis of work processes and t he design of new and better ones. The goal of reengineering effort is to focus attention on improved ways of doing things. Simply put, reengineering is a radical and disciplined approach to changing the way work is carried out in organizations.

*Work Process- a related group of tasks that together create a result of value f or the customer.

*Workflow- movement of work from one point to another in the manufacturing or se rvice delivery process, is central to the understanding of processes

Managing Bigness *Simultaneous Structures- combined mechanistic and organic designs

*Downsize- taking actions to reduce the scope of operations and number of employ ees. It is often used when top management is challenged to reduce costs quickly and increase productivity.

*Intrapreneurship- pursuit of entrepreneurial behavior by individuals and subuni ts within large organizations. CHAPTER 13 LEADING-TO INSPIRE EFFORT

*LEADERSHIP- process of inspiring others to work hard to accomplish important ta sks -process of influencing & supporting others to work enthusiastically towards ach ieving objectives *VISION- someone who has a clear sense of the future

*POWER- ability to get someone else to do what you want them to do

Sources of Position Power +Reward- influence through rewards +Coercive- influence through punishment +Legitimate- influence through authority

Sources of Personal Power +Expert- influence through special expertise +Referent- influence through identi fication

Turning Power into Influence . Centrality, Criticality & Visibility

Position, Power, & Interpersonal Skills

no substitute for expertise, likable personal qualities are very important, effo rt and hard work breed respect, personal behavior must support expressed values

Acceptance Theory of Authority- identifies 4 conditions that determine whether a leader s directives will be followed and true influence achieved +The Other Person Must Understand The Directive Feel Capable of Carrying Out The Directive Feel The Directive Is In The Organization s Best Interests Believe The Directive Is Consistent With Personal Values

Empowerment- process through w/c managers enable and help others to gain power a nd achieve influence w/ in the organization. +Benefits of Empowerment- allow people to act independently, manager gains power , create positive relationships, and builds reference power

Leadership Traits & Behaviors (Why are some people more effective leaders than o thers?)

TRAIT APPROACH- focus on leader s personal characteristics, doesn t guarantee succes sful leadership, based on personal competencies +Search for Leadership Traits- drive, desire to lead, motivation, honesty and in tegrity, self-confidence, intelligence and knowledge, and flexibility

BEHAVIORAL APPROACH- focus on leader s behavior in relation to his followers -Function & style -how & what leaders do +Task Concern / Task Related Fnx / Task Oriented / Production Oriented / Initiat

ing Structure- plans and defines work to be done, assigns task responsibilities, sets clear work standard s, urges task completion, and monitors results +People Concerns / Group Maintenance / Employee-Oriented / Consideration- acts w arm and supportive, develops social rapport with them, respects their feelings, sensitive to their n eeds, shows trust in them

+Styles of Leadership based on Behavior Abdicative / Laissez-Faire- low concern for both people and tasks Directive / Autocratic- high concern for task and low concern for people Supportive / Human Relations- high concern for people and low concern for tasks Participative / Democratic- shows high concern for both people and tasks

Truly Effective Leaders were High in Both Concern for People and Concern for Tas k: +Country Club Mngmnt- high employee, low production +Impoverished Mngmnt- low employee, low production +Team Mngmnt- high employee, high production +Authority-Obedience Mngmnt- low employee, high production +Middle-of-the Road Mngmnt- intermediate employee, intermediate production

CONTINGENCY APPROACH- focus on match between leader behavior and situational cha racteristics *Fiedler s Contingency Model- good leadership depends on a match between leadershi p and situational demands. Leadership Style is measured on the Least-Preferred Coworker scale (LPC ). It describes the tendencies of a leader to either be task motivated or relationship motivated

Diagnosing Situational Control (3 Contingency Variables / Dimensions) +Leader-Member Relations (Good Or Poor)- measures the degree to w/c the group su pports the leader +Degree of Task Structure (High Or Low)- measures the extent to w/c task goals, procedures & guidelines are clearly spelled out. +Amount of Position (Strong Or Weak)- measures the degree to w/c the position gi

ves the leader power to reward & punish subordinates

Matching Leadership Style and Situation +Task Oriented Leader Is Most Successful In Either

-Very Favorable (High Control) -Very Unfavorable (Low Control) +Relationship Oriented Leader Is Most Successful In Moderate Control Situation

*Hersey-Blanchard (Situational Leadership Model) -Leaders adjust their styles depending on the readiness of their followers +Readiness- how able, willing, and confident followers are to perform tasks

Hersey-Blanchard 4 Leadership Styles (diff. combinations of task-oriented & rela tionship-oriented behaviors) +Delegating- allowing the group to make and take responsibility for task decisio ns (low task, low relationship) -works best in high-readiness situations of able, willing and confident follower s (high ability, high willingness) +Participating- emphasizing shared ideas & participative decisions (low task, hi gh relationship) -recommended for low to moderate readiness (high ability, low willingness) +Selling / Coaching- explaining task directions in a supportive & persuasive way (high task, high relationship) -moderate to high readiness (low ability, high willingness) (directive; supporti ve) +Telling- giving specific task directions & closely supervising work (high task, low relationship) -works best at the other extreme of low readiness (low ability, low willingness) (directive; low support)

*House s Path-Goal Model of Leadership (Goal Leadership Theory) -this theory suggests that an effective leader is one who clarifies paths throug h w/c followers can achieve both task-related and personal goals. He clears the way to help you reach your goal. Training, incentive & bonuses to achieve organizational goals.

Leadership Style in the Path-Goal Theory +Directive- letting subordinates know what is expected; giving directions on wha t to do and how; scheduling work to be done; maintaining definite standards of performance; clarifying leade r s role in the group (Telling)

+Supportive- doing things to make work more pleasant; treating group members as equals; being friendly & approachable; showing concern for well-being of subordinates +Achievement-Oriented- setting challenging goals; expecting the highest level of performance; emphasizing continuous improvement in performance; displaying confidence in meeting high sta ndards +Participative- involving subordinates in decision making; consulting w/ subordi nates; asking for suggestions from subordinates; using these suggestions when making a decision

Substitutes for Leadership- factors in the work setting that direct work efforts w/o the involvement of a leader +Subordinate characteristics- ability, experience, & independence +Task characteristics- routine ness, availability of feedback +Organizational characteristics- clarity of plans, formalization of rules & proc edures *Vroom-Jago Leadership Participation Theory (Leader-Participation Theory) -designed to help a leader choose for any problem situation the best decision-ma king method +Individual / Authority Decision- decision made by the leader & then communicate d to the group +Consultative Decision- decision made by a leader after receiving info, advice o r opinions from group member +Group / Consensus Decision- decision made w/ the full participation of all grou p members

+Effective Leadership- know when each decision method is best, be able to implem ent well +Use Group-Oriented Decision-Making when: leaders lack sufficient information, p roblem is unclear, acceptance of decision by others is important, and adequate time is available +Use Authority-Oriented Decision-Making when: leaders have expertise to solve pr oblem, leader is confident and capable of acting alone, others are likely to accept the decision, and littl e or no time available for discussion

CHARISMATIC APPROACH- focus on visionary, inspirational, and empowering qualitie s of super leaders Trends in Leadership Development

*Charismatic Leader- a leader who develops special leader-follower relationships and inspires followers in extraordinary ways.

*Transformational Leadership- use of charisma and related qualities to raise asp irations and shift people and organizational systems into new high-performance patterns (gives inspiration / c harisma)

+Qualities of Transformational Leaders- vision, charisma, symbolism, empowerment , intellectual stimulation, and integrity

*Transactional Leadership- use of tasks, rewards and structures to help follower s meet their needs while working to accomplish organizational objectives (getting things done)

*Good Old-Fashioned Leadership- defines and establishes a sense of mission, acce pt leadership as responsibility rather than rank, and earn and keep trust of others

*Ethical Aspects of Leadership- responsibility to set high ethical standards, ob ligation to supply necessary spark to awaken potential, and high expectations tend to generate high performan ce

CHAPTER 16

COMMUNICATION

Communication- process of sending & receiving symbols w/ meanings attached

The Communication Process +Key Elements: Sender- responsible for encoding an intended message into meaningful symbols, bo th verbal & nonverbal Message- sent through a Communication Channel (medium through w/c a message is s ent) Receiver- decodes / interprets its meaning Feedback- reverses the process and conveys the receiver s response back to the sen der

Noise- anything that interferes w/ communication effectiveness

Nonverbal Communication- takes place through gestures & body language

Management By Wandering Around (MBWA)- dealing directly w/ subordinates by regul

arly spending time walking around & talking w/ them about a variety of work-related matters

360-Degree Feedback- involves upward appraisals from subordinates as well as add itional feedback from peers, internal and external customers, and higher managers.

CHAPTER 14

MOTIVATION & REWARDS

*Motivation- forces w/ in the individual that accounts for the level, direction and persistence of effort expended at work

*Reward- work outcome of positive value to the individual, motivational work set tings are rich in rewards for productive workers +Extrinsic Rewards- value outcomes given by one person to another (bonuses, prom otions, special assignments, awards) +Intrinsic Rewards- self-administered, occur as part of the job itself, (feeling s of competency, personal development, self-control)

CONTENT THEORIES OF MOTIVATION -help us to understand human needs and how people w/ different needs may respond to different work situations

Hierarchy of Needs (Maslow) *Deficit Principle *Progression Principle

+Lower Order Needs- physiological, safety & social +Higher Order Needs- self-esteem and self-actualization

ERG (Existence, Relatedness & Growth) *Frustration-Regression Principle-

2 Factor Theory *Hygiene Factors- element of Job Context & Sources of Job Dissatisfaction *Satisfiers Factors- element of Job Content & Sources of Job Satisfaction & Moti vation -job itself is exciting / love your job / motivation / recognition

Acquire Need Theory (Different Types of Individual Needs) +Need For Achievement +Need For Power +Need For Affiliation

PROCESS THEORIES OF MOTIVATION -offer additional insights into how people give meaning to rewards and then resp ond w/ various work-related behaviors

Equity Expectancy- {m = E x I x V) {Motivation = Expectancy x Instrumentality x Valence } +Expectancy+Instrumentality+Valence-

Goal-Setting

REINFORCEMENT THEORY OF MOTIVATION -focuses attention on the environment as a major source of rewards & influence o n human behavior -external environment is what motivates us Operant Conditioning . Organizational Behavior Modification .Manipulating. (B.F. Skinner) +Positive Reinforcement- praise / pay increase +Punishment- demotion / fire / reprimand

+Negative Reinforcement- removal of unpleasant consequence (stop complaints) +Extinction- removal of pleasant consequences (withhold praise & rewards)

*Law of Immediate Reinforcement- immediately reprimand Motivation & Compensation

Pay For Performance: (Expectancy, Equity & Reinforcement) +Merit Pay- awards a pay increase in proportion to individual performance contri butions, consistent with equity, expectancy, and reinforcement theories

Incentive Compensation Systems: +Bonus Pay- lump-sum payments based on the accomplishment of specific performanc e targets, one-time payment based on extraordinary contribution +Profit-Sharing Plans- employees receive a proportion of net profits earned by t he organization during a stated performance period +Gain-Sharing Plans- groups of employees to share in any savings realized throug h their efforts to reduce costs and increase productivity +Employee Stock Ownership (ESOP)- employees own stock in the company that employ s them, often used as way to save jobs and prevent business closings *Stock Options- Employees are given the right to buy shares at a future date at a fixed price, when the price has risen one can exercise the option to buy the stock at a discount and realize a financial gain, most common at senior executive level

Pay For Knowledge +Skills-Based Pay- pay based on number of job-relevant skills mastered (factory workers) . Flexible +Entrepreneurial Pay- workers put part of their compensation at risk in return f or the opportunity to pursue ideas and participate in any resulting profits