ORGANIZATIONAL STRUCTURE

- the arrangement of positions in an organization and the authority and responsibility

relationships among them
- determined by the interrelationships among the responsibilities of various positions or roles.
- an adaptive mechanism that permits the organization to function in its surroundings
- Dimensions:
● Traditional vs. Nontraditional Structures
○ Traditional Structures
■ The bureaucracy (Max Weber)
- characterized by a well-defined authority hierarchy with strict rules for
governing work behavior.
- often represented as a pyramid
- based on formality and authority
- resistant to change—bureaucratic structures are ineffective for
organizations operating in rapidly changing environments
- 6 characteristics:
the division or specialization of labor/delegation of authority—lead
to greater productivity when the manufacturing of goods or the delivery
of services is routine
well-defined authority hierarchy- there is no confusion about who
reports to whom
formal rules and procedures
impersonality- behavior is based on logical rather than emotional
thinking
merit-based employment decisions- hiring and promotion decisions
are based on who is best qualified for the job
an emphasis on written records- keep meticulous records of past
decisions and actions (compulsive “paper-shufflers.”)
- 2 additional issues important to Weberian bureaucracy (Daniel Katz
and Robert Kahn):
● standardization of tasks- the training of employees toward that
end—analogous to Taylor’s notion of the “one best way” to get a job
done
● centralized decision making- Related to the notion of a chain of
command is the idea that decision making should be centralized
■ Line-staff organizational structure
- made up of two groups of employees, each with different goals:
line- workers who are directly engaged in the tasks that accomplish the
primary goals of the organization
- more service-oriented and less open to change
staff- consists of specialized positions designed to support the line
- have very little to do directly with the primary goals of the organization
- better at managing relationships and are more open to change
- typical functions: personnel and quality control
- the support staff and technostructure of an organization
○ Nontraditional Structures
■ Team Organization
 - workers have broadly defined jobs
- Workers know a great deal about the product or goals of the organization
and tend to possess a variety of work-related skills
- employees share skills and resources, working collaboratively to get the
job done.
- place much less emphasis on organizational status—formal project
leaders/supervisors/managers do not typically possess the “ultimate”
authority
- each worker is viewed as a knowledgeable and skilled professional who is
expected to be self-motivated and committed to the goals of the
organization.
- team members have considerable input into organizational decision
making—consensus
- intragroup conflict is usually turned to productive, functional outcomes.
■ Project Task Force
- a temporary, nontraditional organization of members from different
departments or positions within a traditional structure who are assembled
to complete a specific job or project.
- all members are viewed as professionals who will contribute
collaboratively to the group’s output.
■ Matrix Organization
- an organizational design that is structured both by product and function
simultaneously.
- designed to adapt rapidly to changing conditions—high flexibility and
adaptability
- workers have two reporting lines:
functional manager- person responsible for the work er’s area of
expertise
product manager- responsible for the particular product being
produced
- Advantages:
have greater worker communication and job satisfaction.
high levels of performance in dealing with complex, creative work
products
- Disadvantages:
reporting to two bosses simultaneously can cause confusion and
potentially disruptive conflict—can dilute accountability
increases conflict among managers who equally share power

Traditional (Mechanistic/Bureaucratic Nontraditional/Organic Structures

Structures)

↓ span of control, ↑ formalization and ↑ span of control, ↓ formalization

centralization and centralization
formally defined roles for their Less formalized work roles and
members procedures
very rule driven flexible and adaptable, without
 stable and resistant to change the rigid status hierarchy
clearly defined jobs and lines of have fewer employees
status and authority often organized around a
regulated work behavior and kept particular project
within the organizational guidelines or product line and are
and standards responsible for all aspects of the
authority hierarchy (chain of job
command & span of control) work better in rapidly changing
limited decision making at lower environments
levels Characteristics:
vertical communication flows ○ high flexibility and
Suitable for routine tasks—stable adaptability,
environments ○ collaboration among
workers
○ less emphasis on
organizational status
○ group decision making

● Chain of Command (scalar principle)- the number of authority levels in a particular

organization
- deals with the organization’s vertical growth
● Span of Control/span of management- the number of workers who must report to a
single supervisor
- small: 2 subordinates
- large: 15 subordinates
- Henri Fayol recommendation: no more than 20 employees per supervisor, 6
supervisors per manager—formal hierarchy is the primary coordinating
mechanism
- Napoleon and other military leaders: 3 and 10 subordinates—optimal span
of control
Tall Structure Flat Structure

↑ chain of command, ↓ span of ↓ chain of command, ↑ span of

control control
workers at the bottom levels may feel greater interaction between the top
cut off from those above—separated and bottom of the
by many levels of middle-ranking organization—few levels separate
superiors. top-level managers from
may offer promotional opportunities bottom-level workers
for lower-level employees throughout few promotional opportunities
their careers supervision may not always be
Adequate supervision adequate—many workers report to
can become “top heavy” with the same supervisor
administrators and managers—ratio more common when the task is
of line workers to supervisors is very routine or repetitive
low
for organizations with complex and
multifaceted goals or products
necessary where employees perform
highly interdependent work with
 others
have higher overhead costs—most
layers of hierarchy consist of
managers rather than employees
who actually make the product or
supply the service
tend to undermine employee
empowerment and engagement
senior managers often receive
lower-quality and less timely
information from the external
environment
❖ negative long-term consequences of cutting out too much middle
Mintzberg :
management:
Strategic Apex
Technostructure ➢ Undermines managerial functions
Middle Management/line ➢ Increases workload and stress
Operating core ➢ Restricts managerial career development
Support staff
● Functional vs. Divisional Structure
Functional Structures Divisional/Product/multidivisional/M-f
orm Structures

divides the organization into based on types of products or

departments based on the customers—each division
functions or tasks performed operates almost as if it were a
relates to the horizontal growth of separate organization.
the organization Types:
Advantages: ○ geographic divisional
○ it creates job specialists, structure- organizes employees
such as experts in marketing or around distinct regions of the
finance country or world
○ eliminates duplication of ○ product/service
functions divisional structure- organizes
○ direct supervision is easier employees around distinct
Disadvantages: outputs
○ May breed ○ client divisional
interdepartmental rivalry and structure- organizes employees
conflict around specific customer groups.
○ work must move from one Advantages:
large department to another to be ○ accommodates growth
completed—may decrease relatively easily—the company
productivity can easily expand products or
services merely by adding a new
division
○ greater accountability
Disadvantages:
○ duplication of areas of
expertise
○ creates a silos of
knowledge
○ potential communication
across product lines can be
 problematic, resulting in
coordination difficulties and
conflict across these lines

● Centralized vs. Decentralized Structure

Centralized Structures Decentralized Structures

advantage of uniformity—may limit each store can make its own

the ability of individual stores to decisions
adjust to special circumstances employees felt that they were
the tightest means of coordinating treated more fairly
decision making in the organization 3 reasons for strong pressure
decisions are made by one person for decentralization:
and then implemented through ○ it is not feasible for
direct supervision members of the strategic apex to
make every decision pertaining
to the operation of the company.
○ decisions often cannot be
made quickly in tall structures
○ the capacity and authority
for decision making among
employees at lower levels of the
organization are appealing to
intelligent individuals.

● Formalization- the degree to which organizations standardize behavior through

rules, procedures, formal training, and related mechanisms
○ Problems with formalization:
- Rules and procedures reduce organizational flexibility
- High levels of formalization tend to undermine organizational learning
and creativity
- source of job dissatisfaction and work stress
- rules and procedures have been known to take on a life of their own
in some organizations
● Departmentalization- specifies how employees and their activities are grouped
together
○ Influences to Organizational behavior:
- establishes the chain of command—it frames the membership of
formal work teams and typically determines which positions and units
must share resources
- focuses people around common mental models or ways of thinking
- encourages coordination through informal communication among
people and subunits
○ 6 most common pure types of departmentalization:
■ Simple structure- employ only a few people and typically offer only
one distinct product or service
- minimal hierarchy—just employees reporting to the owners
 - employees perform broadly defined roles—there are
insufficient economies of scale to assign them to specialized
jobs.
- highly flexible
■ Functional structure
■ Divisional structure
■ Team-based structure- built around self-directed teams that complete
an entire piece of work
- usually organic—wide span of control, highly decentralized,
low formalization and in extreme situations, there is no formal
leader
- usually found within the manufacturing or service operations of
larger divisional structures
- can be costly to maintain due to the need for ongoing
interpersonal skill training
■ Matrix structure
■ Network structure- design and build a product or serve a client
through an alliance of several organizations
- consists of several satellite organizations beehived around a
hub or core firm
➔ core firm- orchestrates the network process and provides one
or two other core competencies
- the main contact with customers
➔ Extranets/Web-based net works with partners- ensure that
information flows easily and openly between the core firm and
its array of satellites
- Advantages:
- offer the flexibility to realign their structure with
changing environmental requirements
- offer efficiencies because the core firm becomes
globally competitive as it shops worldwide for
subcontractors with the best people and the best
technology at the best price
- Disadvantages:
- they expose the core firm to market forces—other
companies may bid up the price for subcontractors
- Contingencies of Organizational Structure:
● External Environment- includes anything outside the organization—most
stakeholders, resources, and competitors
- 4 characteristics:
Dynamism Dynamism Dynamic environments
Complexity - high rate of change, leading to novel situations
Diversity and a lack of identifiable patterns
Hostility - better suited for organic structures

Stable environments
- regular cycles of activity and steady changes in
supply and demand for inputs and outputs
 - events are more predictable
- better suited for mechanistic structures

Complexity Complex environments

- have many elements
- ↑ complexity, ↑ decentralization

Simple environments
- have few things to monitor

Diversity Diverse environments

- have a greater variety of products or services,
clients, and regions
- ↑ diversity, ↑ divisionalization

Integrated environment
- has only one client, product, and geographic area

Hostility Hostile environment

- face resource scarcity and more competition in
the marketplacemechanistic
- work best for organic structures
- ↑ hostility, ↑ centralization

Munificent environment
- there is richness of appropriate resources
- work best for mechanistic structures
● Organizational size- ↑ no. of employees, ↑ division of labor—standardization and
centralization
● Technology- the mechanisms or processes by which an organization turns out its
product or service
- Organic structure: ↑ variability, ↓ analyzability
- Mechanistic structure: ↓ variability, ↑ analyzability
● Organizational strategy- the way the organization positions itself in its setting in
relation to its stakeholders, given the organization’s resources, capabilities, and
mission
- Organic structure: innovation—it is easier for employees to share knowledge
and be creative
- Mechanistic structure: low-cost strategy—it maximizes production and service
efficiency
- 2 fundamental processes:
● Division of labor-the subdivision of work into separate jobs assigned to different
people—leads to job specialization
● Coordination- dividing work among many people only to the extent that those
people can coordinate with each other
○ Mutual adjustment- the process of informal communication by which
employees coordinate their efforts to produce an outcome
- suffices if work processes are rather routine
○ Direct supervision/Formal hierarchy- achieves coordination by having one
person take responsibility (legitimate power) for the work of others, issuing
instructions to them and monitoring their actions
 - the optimal coordinating mechanism for large organizations
- can be efficient for simple and routine situations
○ Standardization of work processes- the work is designed in such a way
that the same process is followed no matter who is performing the job—done
through codified statements
- feasible when the work is routine or simple
- less effective in nonroutine and complex work
○ Standardization of work output- The work is designed in such a way that
the same output is achieved irrespective of differences in time or location
○ Standardization of skills and knowledge- Organizations institute training
programs for employees to standardize the skills needed to perform work,
thereby controlling and coordinating the work—done through requiring
employees to have attained a certain level of education or professional
licensure
- used in hospital operating rooms
○ Informal communication- includes sharing information on mutual tasks
forming common mental models so that employees synchronize work
activities—vital in non routine and ambiguous situations
■ Liaison roles- expected to communicate and share information with
co-workers in other work units
■ integrator roles- responsible for coordinating a work process by
encouraging (persuasion) employees in each work unit to share
information and informally coordinate work activities
■ concurrent engineering- The organization of employees from
several departments into a temporary team for the purpose of
developing a product or service
- Contingency Models of Organizational Structure
- look at the interaction of characteristics of the individual and characteristics of the
situation
● Woodward’s Structural Contingency Model (Joan Woodward)
- Maximal performance—organizational structure needed to match the type of
production technology
- Mismatch of technological complexity and appropriate structures— ↓ productivity
- Limitation: focus solely on manufacturing organizations

Type of Examples Characteristics Characteristics

Manufacturer of Span of of Chain of
Control Command

Small-batch - production of moderate (20-30 short

production specialized workers per
electronic supervisor)
components or
construction
equipment

Large-batch/Mass - automobile large (40-50 fairly long

production assemblers workers per
- manufacturers of supervisor)
 household
appliances

Continuous-proce - production of small very long

ss production chemicals or
refining oil

● Perrow’s Model
- looked at the relationship between technology and structure in all types of
organizations.
- information technology- all aspects of jobs, including the equipment and
tools used, the decision making procedures followed, and the information and
expertise needed.
- 2 Dimensions of Work-related technology:
Analyzable/unanalyzable work- whether the technology can be broken
down into simple, objective steps or procedures.
Work with few/many exceptions (variability)- whether work is
predictable and straightforward or has unfamiliar problems turning up
often in the process.
With few exceptions/ With many
Routine low variability exceptions/ high
Engr Tech variability
Craft Tech
Non routine Routine technology Engineering
(assembly-line technology (work of
Analyzable production) lawyers or civil
engineers)

Craft technology (jobs Nonroutine technology

of a skilled woodcarver (work
Unanalyzable and a social worker) of scientific
researchers or
professional artists and
musicians)

● Lawrence and Lorsch Model

- looks at how structure must adapt to fit changing environmental conditions.
- 2 processes that determine a company’s ability to keep up with external
changes:
Differentiation- the complexity of the organizational structure:
Integration- amount and quality of collaboration among the various units
of the organization
- common environmental factors that have an impact on work
organizations:
economic forces
consumer demand
 supply of raw materials
supply of human resources
government regulations

- Theories of Organization- a set of propositions that explains or predicts how groups and
individuals behave in varying organizational structures and circumstances
● Classical Theory- focuses mainly on structural relationships in organizations
- credited with providing the structural anatomy of organizations
- the first major attempt to articulate the form and substance of
organizations in a comprehensive fashion.
- emphasized both direct supervision and standardization as
coordinating mechanisms.
○ 4 Basic tenets:
■ Organizations exist for economic reasons and to accomplish productivity
goals
■ Scientific analysis will identify the one best way to organize for production
■ Specialization and the division of labor maximize production
■ Both people and organizations act in accordance with rational economic
■ principles
○ 4 Basic components of organizations:
■ A system of differentiated activities- composed of activities and
functions performed
■ People- perform tasks and exercise authority.
■ Cooperation toward a goal- achieve a unity of purpose in pursuit of their
common goals.
■ Authority- established through superior–subordinate
relationships—needed to ensure cooperation among people pursuing their
goals.
● line authority- the right to issue orders to other managers or
employees—creates a superior (order giver)–subordinate
(order receiver) relationship
○ line managers- managers with line authority
● staff authority- gives a manager the right to advise other
managers or employees—creates an advisory relationship
○ staff managers- staff (advisory) authority—eg. hr
managers
○ 4 Major Structural Principles:
■ Functional principle
■ Scalar principle
■ Line/Staff principle
■ Span of control principle
○ Developments of Classical Theory:
■ Scientific Management/Taylorism (Frederick Taylor)
- the organization is a machine—a pragmatic machine whose focus is
simply to run more effectively
- there is one best way to get the job done
 - maintained that factory workers would be much more productive if
their work was designed scientifically.
- 4 Principles:
● management gathers data from the workers, who are in the best
position to understand the job duties and tasks
● workers are selected “scientifically”—and then trained so that they
become more efficient than ever before
● scientific selection, data collection, and training are combined to
enhance efficiency—since science and workers are not a “natural
● combination.”
● the work itself is redistributed, with management taking over tasks
previously left to subordinates
■ Bureaucracy (Max Weber)

● Neoclassical/Humanistic Theory- it is a recognition of psychological and behavioral

issues that question the rigidity with which the classical principles were originally
stated.
- its origins go back to the findings from the Hawthorne studies (1950s)
- modernization or updating of the original (classical) theory
- revealed the significance of the most primary means of attaining coordination,
mutual adjustment
- explains organizational success in terms of employee motivation and the
interpersonal relationships that emerge within the organization
○ Difference to Classical Theory:
■ argued for less rigid division of labor and for more “humanistic” work in
which people derive a sense of value and meaning from their jobs.
■ although the scalar principle prescribes formal lines of authority, in
reality many sources operating in an organization influence the
individual
■ many staff functions are critical to the success of the organization, so
the value of the distinction between line and staff is not as great as
originally proposed.
■ span of control depends on such issues as the supervisor’s
managerial ability and the intensity of the needed supervision
○ Contributions:
■ reveal that the principles proposed by classical theory were not as
universally applicable and simple as originally formulated.
■ they tried to make the classical theory fit the realities of human
behavior in organizations
○ Examples of Neoclassical/Humanistic Theory:
■ Theory X and Y (D. M. McGregor)
● Open-Systems Theory (Katz and Kahn)- views an organization as existing in an
interdependent relationship with its environment— through communication and
decision making
- origins: biological sciences
- also called “systems approach”
- used in balance all 5 coordinating mechanisms
○ 5 parts of organizational system:
 ■Individuals- bring their own personalities, abilities, and attitudes with
them to the organization—influence what they hope to attain by
participating in the system.
■ Formal organization- the interrelated pattern of jobs that provides the
structure of the system.
■ Small groups- do not work in isolation—become members of small
groups as a way to facilitate their own adaptability within the system
■ Status and role- define the behavior of individuals within the system.
■ Physical setting- the external physical environment and the degree
of technology that characterizes the organization.
○ System’s larger goals:
■ Stability- its parts are harmoniously integrated
■ Growth- reflects a sense of vitality and vigor
■ Adaptability- enables the organism to survive in times of rapid
change
○ 3 key elements of open-system theory:
Inputs Throughputs Outputs

- Raw materials - Production - Products

- Human resources processes - Services
- Energy - Service processes - Knowledge
- Machinery - Training processes

○ 10 characteristics of open systems:

■ Importation of energy- energy is brought in from the external
environment for use by the system
■ The throughput- that energy is transformed
■ The output- a product or service is exported
■ Systems as cycles- the pattern of importation of energy and
exportation of products and services continues
■ Negative entropy- the tendency of all systems to move eventually
toward death is reversed
■ Information input and negative feedback- information input and
negative feedback allow the system to correct or adjust its course
■ The steady state- surviving open systems are characterized by a
balance in energy exchange
■ Differentiation- open systems move toward more specialized
functions
■ Integration and coordination- bringing the system together as a
unified process is necessary for the system to continue
● Alignment- all parts of the organization are interrelated, thus
changes in one part require changes in other parts
■ Equifinality- there are many ways within the system to get to the
same conclusion or end point
- 5 Basic Parts of an Organization (Mintzberg):
● Operating core- consists of those employees who are responsible for conducting the
basic work duties that give the organization its defining purpose
● Strategic apex- responsible for the overall success of the entire organization
 - have the responsibility and authority to ensure that the larger goals of the
organization are being met
- the “brain” of the organization
● Middle line- employees who have the day to-day authority for ensuring that the
overall goals set by the strategic apex are being carried out by the operating core
- the mid-level bosses—bodies the coordinating mechanism of direct
supervision
- where most of the job loss occurs when downsizing
● Technostructure- employees who possess specific technical expertise that
facilitates the overall operation of the organization
- specialists in areas of business that influence the organization but do not
perform the mainstream work of the organization nor are they members of top
management
- relies primarily on the standardization of knowledge and skills
- examples: accounting, human resource, information technology, and law
● Support staff- provides services that aid the basic mission of the organization
- relies primarily on the standardization of work processes
- examples: mailroom, switchboard, security, and janitorial services
- 5 Systems of Human Organization (Rensis Likert):
● System 1 (exploitative authoritarian type)- similar to theory x, characterized as
having very little trust in employees, little communication between employees and
management, very centralized decision-making, and control achieved in a very
“top-down” manner
● System 2 (benevolent authoritative)- Similar to system one but there is some level
of trust towards the employees and, at times, management uses their ideas. The
organization to its employees a little better
● System 3 (consultative)- substantially greater trust in employees and greater use
of their ideas. More overall communication flowing from the bottom up. those at the
top of the organization set broad policies, and more specific operational decisions are
made by those at lower levels
● System 4 (participative group)- managers have complete trust in subordinates and
always seek their input prior to making decisions. Communication in this type of
organization is free-flowing in all directions and there is often a great reliance on
teamwork. Decision making occurs at all levels
● System 5- identical to system for but different in the aspect of leadership being a
shared enterprise. Essentially, the organization has no “bosses”
- Global Organizations/Globalization/Globally Integrated Enterprise
- have all the properties of any organization with added feature—their physical
locations and employees are distributed throughout the world
- organizes people around product or client divisions—type of divisional structure
- marked by a dramatic increase in virtual teamwork
- response to advances in computer technology, new trade agreements among
nations, and the end of the Cold War.
- international → multinational → global
- Disadvantages:
- duplication of internal services
- poor interdivisional communication
- 4 key dimensions that most affect the global organization:
Leadership
Individualism
Communication
Decision Making
 Leadership roles and expectations
- Western: democratic style of leadership
employees—encouraged and expected to voice their opinions
disagreements with managers—not uncommon
employees—encouraged to challenge and question
- Nonwestern: managers are expected to make decisions
status differentials based on title
lower-level employees who speak out may be considered
disrespectful
managers act in a certain formal style or else they may
lose credibility
Individualism and groups
- Western: greatly value independence, and successful task completion or
“getting the job done”
- Nonwestern: more group oriented or collectivist
Communications
Decision making and handling conflict
- Western: highly action oriented
like to get work done
do not waste time
derive pleasure from achievement
prefer frankness and candor in dealing with conflict
accept and expect conflict
use power to resolve differences
- Nonwestern: more indirect in conveying disagreement or
criticism—protect honor and avoid shame
greater emphasis is placed on avoiding conflict—rooted in
courtesy and respect

TEAM DYNAMICS
- Social System-The human components of a work organization that influence the behavior
of individuals and groups.
Work group/Team- an interdependent collection of individuals who share
responsibility for specific outcomes for their organizations—members share goals
❖ Formal groups- subunits that the organization has actually established
Production teams - front-line employees producing tangible output
- often self-managed, self-led, self-directed
- Examples: Electronics assembly units, coal
mining crews, candy production crews

Management teams - corporate executive teams; regional steering

committees
- coordinate other work units under their direction
- responsibilities include planning, budgeting,
staffing
- Examples: Top management teams, military
command teams, healthcare teams
Service teams - attend to the needs of customers
- serve many customers at one time
- Examples: Flight attendants, hospital
emergency units, retail sales groups

Project/Cross-functio - created for the duration of a project

nal teams - disband at completion of project
- Examples: New-product teams, research units,
research and design project groups

Advisory/Parallel - solve problems and recommend solutions

teams - very popular in organizations
- temporary
- “Third Opinion” (Saj-Nicole Joni)- advisory
teams as external thinking partners who may
help the executive deal with a particular
problem or with big-picture issues
- Examples: Quality circles, employee
involvement teams, university advisory group to
the president

Self managed work - responsible for monitoring and controlling the

team overall process or product, as well as for doling
(SMWT)/Self-directed out specific tasks to team members
teams - they have substantial autonomy over the
execution of their tasks—often schedule their
own work
- do routine housekeeping, and maintain their
own equipment
- may even participate in discussions of budgets,
performance appraisals, or training
- coordinate mainly through informal
communication and specialized knowledge

Skunkworks - Multiskilled teams usually located away from

the organization that are usually located away
from the organization
- often initiated by an entrepreneurial team
leader who borrows people and resources
(bootlegging) to design a product or service

Communities of - bound together by shared expertise and

practice passion for a particular activity or interest
- main purpose: to share information

virtual teams - teams whose members operate across space,

time, and organizational boundaries and are
linked through information technologies to
achieve organizational tasks
- they are not usually colocated
- due to their lack of colocation, members of
virtual teams depend primarily on information
technologies rather than face-to-face interaction
to communicate and coordinate their work effort
 ● Success factors for virtual teams
-must have the ability to communicate easily through technology, strong
self-leadership skills to motivate and guide their behavior without peers or
bosses nearby, and higher emotional intelligence so that they can decipher
the feelings of teammates from e-mail and other limited communication
media
- virtual teams have a toolkit of communication vehicles (e-mail, virtual
whiteboards, videoconferencing, etc.), which gain and lose importance over
different parts of the project
- virtual-team members should meet face-to-face fairly early in the team
development process
❖ Informal groups- develop apart from the official structure of the organization
and exist relatively independently of it—emerge from close proximity and
frequent interaction
- backbone of social networks
- Functions:
■ satisfy social needs
■ satisfy security needs
■ facilitate cooperation among employees
performance ■ regulate social and task behaviors
attitude - 3 major dimensions of work-team effectiveness (Susan Cohen):
withdrawal ■ team performance- concerns how well the team is performing and includes
such variables as productivity, quality of output, and the degree to which
costs are controlled in this process
■ attitudes of team members- reflect such variables as quality of work life,
trust in management, organizational commitment, and job satisfaction
■ withdrawal behaviors- turnover, absence, and tardiness
- 2 types of behaviors:
■ taskwork- involves the task oriented aspects of work
■ teamwork- involves the process-oriented aspects of work
- 5 predictors of work team effectiveness:
Organizational - Rewards
context and - Goals and feedback
environment - Training
- Physical layout of the workplace

Group composition - Cognitive ability of group members

and size - Personality traits of group members
- Demographic characteristics of group
members—diverse team
- optimal size: 5-7 people

Group work design - Member task interdependence

- Member goal interdependence

Intragroup processes - Group cohesion

- Group efficacy or communication processes
- organizational leaders—provide support and
 strategic direction

External group - Communication outside the group

processes - External interaction patterns

● task interdependence- extent to which team members must share

materials, information, or expertise to perform their jobs
➢ pooled interdependence- employee or work unit shares a common
resource, such as machinery, administrative support, or a budget, with
other employees or work units
➢ sequential interdependence- output of one person becomes the
direct input for another person or unit; occurs where team members
are organized in an assembly line
➢ reciprocal interdependence- work output is exchanged back and
forth among individuals, produces the highest degree of
interdependence
● 5 C’s of Team Member Management
➢ Cooperating- sharing resources and being sufficiently adaptive or
cooperating flexible to accommodate the needs and preferences of other team
coordinating members
communicating ➢ Coordinating- actively managing the team’s work so that it is
comforting
conflict resolving performed efficiently and harmoniously; requires members to know the
work of other team members, not just their own
➢ Communicating- transmitting information freely, efficiently and
respectfully; also listen actively to co-workers
➢ Comforting- helping co-workers to maintain a positive and healthy
psychological state; showing empathy, providing psychological
comfort, and building co-worker feelings of confidence and self-worth
➢ Conflict resolving- having the skills and motivation to resolving
dysfunctional disagreements among team members; requiring the use
of various conflict-handling styles as well as diagnostic skills to identify
and resolve the structural sources of conflict
- Team Effectiveness and other variables
❖ extraversion and neuroticism—leadership performance
❖ agreeableness predicted contextual performance
❖ high on extraversion—more backup from others
❖ high cognitive ability, favorable personality traits and relevant
expertise—team performance improvement
❖ task design variables—team effectiveness
❖ leadership skills of team leaders—team effectiveness
❖ agreeableness and conscientiousness—most important to performance in a
team-based work environment
❖ conscientiousness,extraversion,and teamwork knowledge significantly
predicted the contextual performance of team members

- social identity theory-individuals define themselves by their group affiliations

 - social capital- the knowledge and other resources available to people from a
durable network that connects them to others
- Teamwork Test- a situational judgment test in which respondents are provided
with hypothetical teamwork situations and asked to select, from multiple
solutions, which one they would likely use
- identifies KSAOs that more effectively predict teamwork than taskwork
- can be used for selection purposes in identifying
- individuals who are most likely to thrive in a team environment
- Dimensions:
● conflict resolution
● collaborative problem solving
● communication
● goal setting and performance management
● planning and task coordination
- Team Role Test- intended to tap into one’s knowledge about team roles,
including in which situations certain roles are more important
- Social enhancement- occurred among group members who were working on a
task that was high in attractiveness.
- Social compensation (Kerr and Tindale)- occurs when individuals increase
their efforts on collective tasks because they don’t anticipate much help from
their group members.
- Group Development
■ Punctuated equilibrium (Gersick)- describes the discontinuous changes in
a group’s pacing and task activities over time Forming
Storming
■ Five stages of group development (Bruce Tuckman)- describes the
Norming
continuous manner in which a group’s structure changes over time Performing
■ 2 distinct processes during team development: Adjourning
● Developing team identity- transition that individuals make from viewing
the team as something “out there” to something that is part of themselves
● Developing team competence- developing habitual routines that
increase work efficiency; form shared or complementary mental models
regarding team resources, goals and tasks, social interaction, and
characteristics of other team members
- Group Decision Making
1.Diagnose the problem - Effective Decision Making
2.Generate solution
3.Evaluate solutions Step Description Common Mistakes
4.Choose
5.Develop Action plan 1. Diagnose the coming to an agreement on - Confusing facts with
and implementation problem the nature of the problem opinions
- Confusing symptoms
with causes

2. Generate Group interaction—focused - Suggesting irrelevant

solutions on understanding the solutions
problem well enough to - Looking at what
identify potential solutions. should have been
done rather than
looking forward
3. Evaluate considering each solution - Failing to consider
solutions in terms of its potential for the potential
success and failure. downside to each
solution
- Attacking the person
who proposed a
particular solution

4. Choose a coming to some agreement - Allowing powerful

solution on the best solution. members of the
group to dictate the
solution chosen
- biasing a particular
solution because it’s
politically correct

5. Develop an determining steps to follow - Preventing some

action plan and in carrying out the decision members from being
implementation and monitoring progress. involved even
though they were
part of the decision
process
❖ Brainstorming
- major criticism: performance decrement—employing a trained
facilitator to minimize production blocking
➢ electronic brainstorming- software allows individuals to type in their
ideas without production blocking, with anonymity, and with other
group members’ ideas available to them at any time on the screen
- advantage: can be quite effective at generating creative ideas with
minimal production blocking, evaluation apprehension, or conformity
problems
- disadvantage: too structured and technology-bound for some
executives
- 4 simple rules of brainstorming:
- Speak freely—describe even the craziest ideas
- don’t criticize others or their ideas
- provide as many ideas as possible—the quality of ideas increases
with the quantity of ideas
- build on the ideas that others have presented
- effectiveness of brainstorming is reduced when:
■ members have to wait their turn or are otherwise delayed in their
opportunity to share, thus blocking the free flow of ideas (Production
blocking)
■ members are apprehensive about voicing their ideas to the group
■ members are more motivated by concern for how “good” they look in
comparison with others than by concern for generating viable
solutions
❖ Approaches to choosing solutions (Forsyth):
➢ Delegating- group provides information to the chairperson, who
makes the decision
 ➢ Averaging individual inputs- group members make individual private
decisions—averaged to arrive at a group-level decision
➢ Majority rules- the group votes, and the majority viewpoint becomes
the group’s choice
➢ Group consensus- the group members discuss the issue until they
reach a unanimous agreement
- Ineffective Decision Making
❖ Brooks’s law/mythical man-month- adding more people to a late
software project only makes it later
❖ Process Loss- any non motivational element of a group situation that
detracts from the group’s performance
➢ Law of group performance (Ivan Steiner):
Actual productivity= Potential productivity- Loss due to Faulty
Processes

● potential productivity- all the positive things that can come

from group work
● process loss- any non motivational element of a group situation
that detracts from the group’s performance
➢ Shared/Unshared information (James Larson & colleagues)- to
improve the quality of group decision making, the pooling of valuable
unshared information should be encouraged
■ Unshared information- held by only one group member
■ Shared information- held by all group members
➢ Groupthink (Irving Janis)- an outcome of:
- very cohesive groups
- the group not soliciting information from employees outside the
group
- the group not allowing individual group members to present
opinions that differ from the majority opinion
- the group having a strong leader who is able to sway everyone in
his or her direction
■ Antecedents of Groupthink:
● cohesion- strong sense of belonging—putting group goals
above individual goals—group members avoid expressing a
dissenting opinion because they believe group unity to be
more important
● isolation- limits the dissenting opinions that could be shared
with the group
● strong, biased leadership- tendency of strong leaders to
“dictate” the direction of the group and even some of its
opinions
● high decisional stress- situations in which a decision needs
to be made quickly and the context in which it exists is very
important and emotionally charged
● team lacks clear guidance from corporate policies or
procedures
 ● team has experienced recent failures or other
decision-making problems
■ Symptoms of Groupthink:
● Belief in invulnerability of group
● Belief in unanimity of group members
● Pressure on dissenters-great deal of pressure put on members
whose opinions seem at odds with those of the rest of the
group
● appointing of a mindguard- a member of a cohesive group
whose job it is to protect the group from outside information
that is inconsistent with the group’s views
● Rationalizing
● Stereotyping
● Self-censorship
● Illusions of morality
■ Elements of Groupthink:
● conformity
● team’s overconfidence- highly confident teams have a false
sense of invulnerability, which makes them less attentive in
decision making
- Constraints on Team Decision Making
❖ Time constraints
● production blocking- only one person can speak at a time—teams
take longer than individuals to make decisions
❖ Evaluation apprehension- based on the individual’s desire to create a
favorable self-presentation and need to protect self-esteem
❖ Pressure to conform
❖ Groupthink
- 4 structures to improve team decision making:
❖ Constructive conflict- different viewpoints are encouraged so that ideas
and recommendations can be clarified, redesigned, and tested for logical
soundness
- advantage: it presents different points of view and thus encourages
all participants to reexamine their assumptions and logic
- challenge: healthy debate too often slides into personal attacks
❖ Brainstorming
❖ Electronic brainstorming
❖ Nominal group technique- a variation of traditional brainstorming that
tries to combine the benefits of team decision making without the
problems
- Stages:
- after describing the problem, team members silently and
independently write down as many solutions as they can
- participants describe their solutions to the other team members,
usually in a round-robin format
- participants silently and independently rank order or vote on each
proposed solution
● Components of Social System:
ROLES
NORMS
COHESION
TRUST
○ Roles- the expectations of others about appropriate behavior in a specific
position.
- prescribe the boundaries of acceptable behavior and enhance
conformity
- “behavior is a function of the person and the environment” (Kurt
Lewin)
B = 𝒇(P, E)
- 5 aspects of Roles (Scott et al.):
● Impersonal
● related to task behavior
● can be difficult to pin down
● learned quickly and can produce major behavior changes.
● not the same with jobs
- The role episode:
● Stage 1: group expectations for a particular position
● Stage 2: communication about expectations
● Stage 3: perceived expectations about role
● Stage 4: actual role behavior
● Feedback
- Role concept- describe how people perceive the various situational
forces acting on them
- Role differentiation- the extent to which different roles are performed
by employees in the same subgroup
○ Norms- shared group expectations about appropriate behavior
- unwritten rules—establish the behavior expected of everyone in the
group
- influence behavior by increasing its consistency and predictability
- Properties of Norms:
● there is “oughtness” or “should ness”
● usually more obvious for behavior judged to be important for the
group
● enforced by the group
● the degree of its sharedness and the degree that deviation is
acceptable vary
● apply only to behavior, not to private thoughts or feelings
- 3-step process for developing and communicating norms:
● norm must first be defined and communicated
● the group must be able to monitor behavior and judge whether the
norm is being followed.
● the group must be able to reward conformity and punish
nonconformity.
- How team norms develop:
- as soon as teams form because people need to anticipate or
predict how others will act
- as team members discover behaviors that help them function more
effectively
- past experiences and values that members bring to the team
- Preventing and changing dysfunctional teams:
 - establish desirable norms when the team is first formed
- select people with appropriate values
- subdue dysfunctional norms while developing useful norms
- team-based reward systems—weaken counterproductive norms
- disband the group and replace it with people having more favorable
norms
- Types of Norms:
■ Descriptive norms- define what most people tend to do, feel, or
think in a particular situation
■ Prescriptive norms- suggest what people should do, feel, or think
in a particular situation
○ Cohesion- the strength of members’ motivation to maintain membership in a
group and of the links or bonds that have developed among the members.
- binding force—pushes members together
- combative force—tries to pull them apart
- group unity/“we-ness,”—strong sense of belonging
- a special type of interpersonal attraction
- an aspect of “teamwork”
- Positive consequences:
members are more satisfied—get along, like one another, have
similar goals, and work well together
less tension and anxiety
- Factors that influence team cohesion:
Member similarity- people with similar backgrounds and
values are more comfortable with and attractive to each other
Team size- Smaller teams tend to have more cohesion
Member interaction- when team members interact with each
other fairly regularly
Somewhat difficult entry- when entry to the team is restricted
Team success- individuals are more likely to attach their
social identity to successful teams
External competition and challenges- when members face
external competition or a valued objective that is challenging

Low Team High Team

Cohesiveness Cohesiveness

Team norms Moderately high task High task

support company performance performance
goals

Team norms conflict Moderately low task Low task

with company goals performance performance
 ○ Trust- positive expectations one person has toward another person in
situations involving risk
- includes both beliefs and conscious feelings about the relationship
CALCULUS with other team members
KNOWLEDGE - 3 foundations of trust:
IDENTIFICATION
Calculus-based - logical calculation that other team
trust members will act appropriately because
they face sanctions if their actions violate
reasonable expectations
- easily broken by a violation of expectations
- alone cannot sustain a team’s relationship
because it relies on deterrence
- offers the lowest potential trust

Knowledge-based - based on the predictability of another team

trust member’s behavior
- relates to confidence in the other person’s
ability or competence
- more stable than calculus-based because
it develops over time
- offers a higher potential level of trust than
calculus-based

Identification-base - based on mutual understanding and an

d trust emotional bond among team members
- occurs when team members think, feel,
and act like each other
- the strongest and most robust of all three
types of trust.

ORGANIZATIONAL CULTURE
- the shared values, beliefs, assumptions, and patterns of behavior within an organization
- somewhat akin to the organization’s “personality”
- reflected in the stories and “myths” that are told within the organization,
- can serve as a force that guides behavior within the organization.
- 3 Layers of Organizational Culture:
Observable artifacts-the surface-level actions that can be observed from which
some deeper meaning or interpretation can be drawn about the organization
- Categories:
- Symbols (e.g., physical objects or locations)
- Language (e.g., jargon, slang, gestures, humor, gossip, and rumors)
- Narratives (e.g., stories, legends, and myths about the organization)
- Practices (e.g., rituals, taboos, and ceremonies)
Espoused values- beliefs or concepts that are specifically endorsed by
management or the organization at large.
- Enacted values- those that are converted into employee behavior
 Basic assumptions- unobservable—at the core of the organization
- rarely confronted or debated and are extremely difficult to change.
- Attraction–Selection–Attrition (ASA) cycle- proposes that people with similar
personalities and values are drawn to (attraction) certain organizations and hired into these
organizations (selection), and people who don’t fit into the pattern of shared values
eventually leave the organization (attrition).
- Psychic prisons (Morgan)- tendency for organizations to staff themselves and socialize
their members in ways that promote a monolithic culture.
- 5 Dimensions of Societal/National Culture (Hofstede):
Individualism vs. collectivism—Concerned with the extent to which individual
interests and goals are emphasized versus a focus on the larger group
Power distance—the extent to which members of the culture accept and expect that
there are differences in the way that power is distributed unequally among members.
Masculinity vs. femininity—extent to which members of the culture value traits and
practices that are stereotypically “masculine” or stereotypically “feminine” traits.
Uncertainty avoidance—extent to which members of the culture avoid or tolerate
uncertainty and ambiguity.
Long-term vs. short-term orientation— whether members of the culture
emphasize long-term orientations versus short-term fulfillment of immediate needs

Philippines’ Indices in Each Dimension

Dimension Index Description

Power distance 94 - Society is hierarchical and

centralized
- Filipinos are generally comfortable
with power inequalities and respect
authority figures

Individualism 42 (low) - Collectivist and group-oriented

Masculinity-Femininity 64 (low) - Society is feminine and nurturing

Uncertainty avoidance 44 (high) - Society is risk aversive and prefers

structure

- Global Leadership and Organizational Behavior Effectiveness project (GLOBE)

- looks at cross-national differences in work organizations, in their cultures, and in their
leadership
- Measuring Organizational Culture
● Focusing on the artifacts of the organizational culture (symbols, commonly shared
stories, and certain rituals)
● Rely on a survey instrument
○ Organizational Culture Profile (OCP) (O’Reilly, Chatman, and Caldwell)
- organizational representatives sort 54 “value statements” into meaningful
categories to provide a descriptive profile of the organization.
○ Organizational Practices Scale (OPS) (Hofstede et al.)
- designed specifically to measure organizational culture whether:
 “process vs. results oriented”
“employee vs. job oriented”
has “loose” or “tight” control
“self-interested vs. socially responsible
“market” vs. “internally” oriented
- Organizational Socialization
● Anticipatory socialization- newcomers develop a set of realistic expectations
concerning the job and the organization, figuring out if the organization is a right
match for them
● Accommodation- begin to learn the ropes as they discover important work group
norms and standards. Also develop interpersonal relationships and learn about roles
● Role management- newcomers make the transition to regular members or insiders,
mastering the tasks and roles they must perform

ORGANIZATIONAL CHANGE
Organizational Development
- involves altering the organization’s work structure or influencing workers’ attitudes or
behavior to help the organization to adapt to fluctuating external and internal
conditions
- A system of planned interventions designed to change an organization’s structure
and/or processes to achieve a higher level of functioning
- about promoting positive humanistic changes in organizations
- an applied, practice-oriented area of the behavioral sciences.
Important characteristics of OD programs:
- involve the total organization
- supported (and initiated) by top management
- entail a diagnosis of the organization, as well as an implementation plan
- long-term processes
- focus on changing attitudes, behaviors, and performance of groups/teams
- emphasize the importance of goals, objectives, and planning
Effective OD interventions:
- fit the needs of the organization
- based on causal knowledge of intended outcomes
- transfer change management competence to organization members
4 Phases of OD:
1. a diagnosis of the organization to identify significant problems
2. appropriate interventions are chosen to try to deal with the problems.
3. implementation of the interventions/OD techniques
4. the results of the interventions are evaluated
- Reasons for the need for OD—changes in an organization’s operating environment
● technological revolution- incredible speed with which products become
obsolete
● globalization
● increasing diversity of the workforce
- Dealing with the fast-paced changes in the workplace
 ● managers need to adopt new forms of managerial thinking that are global in
orientation and allow for strategic flexibility, as well as new organizational
structures
● managers have to be able to operate and thrive in environments characterized by
ambiguity and uncertainty
● organizations must have highly developed workers’ knowledge, education,
training, skills, and expertise (human capital)
● continuous learning and knowledge dissemination throughout the organization
- 3 basic elements of the organizational change:
● Change Agent/Interventionist
- one who coaches or guides the organization in developing problem-solving
strategies—not a problem solver
- works with the various levels of the organization, developing or deciding on
problem solving techniques
- a behavioral scientist—expert at assisting organizations in diagnosing
problems and skilled in helping organizational members deal with sensitive
situations.
- an educator—trains the organization to implement strategies for coping with
future problems
● Client- recipient of the change effort—central to the process
● Intervention- the program or initiative suggested or implemented by the change
agent
- consists of sequenced activities intended to help an organization increase its
effectiveness
- Models/Approaches of Organizational Change:
● Force Field Analysis (Kurt Lewin)
- model of systemwide change that helps change agents diagnose the forces
that drive and restrain proposed organizational change.
- unfreezing—change—refreezing
- preferred option: both increase the driving forces—creates an urgency for
change, and reduce or remove the restraining forces—minimizes resistance to
change
➢ Strategies for Minimizing Resistance to Change
Communication - the highest priority and first strategy required
for any organizational change
- considered the top strategy for engaging
employees in the change process (together
with involvement)
- improves the change process by:
developing an urgency to change by
candidly telling employees about the driving
forces for change
potentially reducing fear of the unknown
- when to apply: When employees don’t feel an
urgency for change or don’t know how the
change will affect them.
- problems: time-consuming and potentially
costly
Learning - when to apply: When employees need to
break old routines and adopt new role
patterns.
- problems: time-consuming and potentially
costly

Employee - tend to make employees feel they have more

involvement personal responsibility for the successful
implementation of decisions—minimizes the
problems of saving face and fear of the
unknown
- when to apply: when the change effort needs
more employee commitment, some employees
need to save face, and/or employee ideas
would improve decisions about the change
strategy
- problems:
very time-consuming
might lead to conflict and poor decisions if
employees’ interests are incompatible with
organizational needs

Stress management - minimizes resistance by removing some of the

direct costs and fear of the unknown of the
change process
- increases employee motivation to support the
change process
- when to apply: when communication,
training, and involvement do not sufficiently
ease employee worries.
- problems:
time-consuming and potentially expensive
some methods may not reduce stress for
all employees.

Negotiation - a form of influence that involves the promise of

benefits or resources in exchange for the
target person’s compliance with the
influencer’s request
- when to apply:
when employees will clearly lose
something of value from the change and
would not otherwise support the new
conditions
when the company must change quickly
- problems:
may be expensive, particularly if other
employees want to negotiate their support
tends to produce compliance but not
commitment to the change

Coercion - replacing people who will not support the

change—an extreme but common step
 - replacing executives/staff—a radical form of
organizational unlearning—removes
knowledge of the organization’s past routines
- when to apply:
when other strategies are ineffective
the company needs to change quickly
- problems: can lead to more subtle forms of
resistance, as well as long-term antagonism
with the change agent.

○ driving forces- push organizations toward a new state of affairs

■ divine discontent- leaders continually urge employees to strive for higher
standards or new innovations even when the company outshines the
competition—key feature of successful organizations
○ restraining forces/resistance to change- maintain the status quo
- subtle resistance is much more common than overt resistance—create the
greatest obstacles to change because they are not as visible
- symptoms of deeper problems in the change process—needs to be seen
as a resource, rather than as an impediment to change
○ stability- occurs when the driving and restraining forces are roughly in
equilibrium
● Action Research Model (Kurt Lewin)
- the process of applying social science research methods to collect relevant
data within the organization to study an organization and to help it understand
and solve its problems
- adopts an open-systems view—recognizes that organizations have many
interdependent parts, so change agents need to anticipate both the intended
and the unintended consequences of their interventions
- Orientations:
○ Action orientation- changing attitudes and behavior
- involves diagnosing current problems and applying interventions that
re solve those problems
○ Research orientation- testing theory
- change agents apply a conceptual framework to a real situation
- involves collecting data to diagnose problems more effectively and to
systematically evaluate how well the theory works in practice
- data-based, problem/application-oriented goal—tries to solve problems
specific to a particular organization and is oriented toward producing some
specific result—focuses on the negative dynamics of the group or system
rather than its positive opportunities and potential
- major characteristic: cyclical nature—cycles of fact finding and taking action
- Steps/Phases:
1. Form client-consultant relationship- consultants need to determine the
client’s readiness for change
2. Diagnose the need for change- data gathering and problem diagnosis
3. Interpretation of data by the OD consultant and its presentation to the
members
 4. Introduce intervention- joint action planning—the OD consultant and the
organizational members design a problem-solving program and applies
one or more actions to correct the problem
○ Incremental change- organization fine-tunes the system and takes
small steps toward a desired state
○ Quantum change- the system is overhauled decisively and
quickly—usually traumatic to employees and offers little opportunity for
correction
5. Evaluate and stabilize change-recommends evaluating the effectiveness
of the intervention against the standards established in the diagnostic
stage—then action research process repeats itself
- Stages in the Action Research Model:
1. Entry- the need for change in an organization becomes apparent.
2. Start-up- the change agent (consultant) enters the picture
3. Assessment and Feedback- information is gathered and validated about
a desired positive future
4. Action planning- the change agent collaborates with decision makers and
stakeholders to muster all their creativity
5. Intervention- the action plan is implemented, monitored, and continually
adjusted
6. Evaluation- A change agent help decision makers and stakeholders
assess the change effort’s progress
7. Adoption- members of the organization maintain the new state
8. Separation- the change agent prepares foreclosure and departure
● Appreciative Inquiry Approach
● Future Search- An organizational change strategy that consists of systemwide
group sessions, usually lasting a few days, in which participants identify trends
and establish ways to adapt to those changes
- tries to involve as many employees and other stakeholders as possible
associated with the organizational system
- Limitations:
- involving so many people invariably limits the opportunity to
contribute—increases the risk that a few people will dominate the process
- focus on finding common ground, and this may prevent the participants
from discovering substantive differences that interfere with future progress
- generate high expectations about an ideal future state that are difficult to
satisfy in practice—employees become even more cynical and resistant to
change if they do not see meaningful decisions and actions resulting from
these meetings
● Parallel learning structures- highly participative arrangements composed of
people from most levels of the organization who follow the action research model
to produce meaningful organizational change
- social structures developed alongside the formal hierarchy with the purpose
of increasing the organization’s learning
- participants are sufficiently free from the constraints of the larger organization
so that they can more effectively solve organizational issues
- 3 ingredients in effective change processes:
● Change agents
 ● Strategic vision- provides a sense of direction and establishes the critical
success factors against which the real changes are evaluated
- vision provides an emotional foundation to the change because it links the
individual’s values and self-concept to the desired change
- minimizes employee fear of the unknown and provides a better understanding
about what behaviors employees must learn for the desired future
● Diffusion of change- a method and mindset for transformation and large-scale
change in organizations.
○ Results-Only Work Environment (ROWE)
- evaluates employees by their results, not their face time
- introduced to support work–life balance and employment expectations of
a younger workforce (Millenials/Generation Z)
- suggests that if a worker has met his/her goals for the day, it is acceptable
for him/her to leave for the day unlike in traditional approaches to work
- demonstrates gains in productivity and lower rates of turnover in groups
that use it
○ MARS Model
■ Motivation- employees are more likely to adopt the practices of a pilot
project when they are motivated to do so
- occurs when they see that the pilot project is successful and people in
the pilot project receive recognition and rewards for changing their
previous work practices
■ Ability- employees must have the ability—the required skills and
knowledge—to adopt the practices introduced in the pilot project
■ Role perceptions- pilot projects get diffused when employees have clear
role perceptions
■ Situational factors- employees require supportive situational factors
- OD Techniques:
Job enrichment- involves the collaboration of workers in work teams that
play an important part in solving change-related problems that may affect the
groups’ work performance
Organizational behavior modification programs- reinforce desirable work
behaviors
Survey feedback- designed to assess employee attitudes about important
work-related issues—moderately successful
- Process: OD consultant + organization → development of survey
instrument → data collection → solve specific problems/institute a
program for managing change
- Benefits:
✔ ↑ the upward flow of communication
✔ positive effect on workers’ attitudes—perceive that management is
interested in hearing their views and concerns
✔ can show workers that they are not alone and that others share
their attitudes and concerns
✔ can be conducted anonymously—can safely voice their
opinions—very honest appraisals of work situations.
T- “training” groups/Sensitivity Training- the use of unstructured group
interaction to help workers gain insight into their motivations and their
behavior patterns in dealing with others.
- small groups of workers—meet in a nonwork setting—unstructured
discussion of their attitudes and beliefs concerning their work, the
work environment, and their interactions with supervisors and
coworkers.
- Eventual Goals:
✔ for participants to gain insight concerning their own behavior
✔ to develop greater openness
✔ to improve skills in understanding and dealing with others
- Concerns:
✔ whether the insights and skills gained from sensitivity training
generalize to actual work settings
Team building- groups of workers meet to discuss ways to improve their
performance by identifying strengths and weaknesses in their interaction with
one another
- Similar to t-groups but focus is on improving team functioning and goal
attainment and does not have the threat of psychological casualties
that may exist in t-groups
- technique that had the largest and most consistent positive effects on
increasing employee job satisfaction and morale
- more commonly applied to existing teams that have regressed to
earlier stages of team development due to membership turnover or
loss of focus
- Sessions:
- First session: diagnostic meeting
- Subsequent sessions: evaluating and “fine-tuning” new
procedures or suggesting alternate approaches.
- Objectives:
- Clarifying role expectations and responsibilities among team
members
- Improving supervisor–subordinate relations
- Improving problem solving, decision making, and planning by team
members
- Reducing conflict among team members
- Developing a vision, mission, or set of goals
- Building cohesion and unity within the team
- Stronger impact on team performance when:
- initiated to correct existing problems
- combined with other OD interventions
- strongly supported by members of the organization, including the
immediate team supervisor
- implemented in a participative management climate
- measured at the group level
❖ Outdoor experiential training (OET)- newer approach to team
building—makes use of the outdoors and entails various physical and
mental exercises, and group activities
 - has a positive effect on the organization’s ROI
Process consultation- an OD technique in which a consultant enters an
extensive and long-term relationship with a client-organization to help them
“perceive, understand, and act upon process events which occur in the
client’s environment”
- OD consultant works as a teacher to assist the client-organization in
learning how to use objective methods to diagnose and solve its own
problems.
- Goal: for the organization to become self-reliant by knowing how to
deal with change-related problems once the process consultant is
gone.
- Process:
1. Initial contact- initiated by someone in the organization who
realizes that problems exist and is willing to try to solve them.
2. Developing the contract- determine the problems, explain the
consultant’s role, and formulate actions to be taken
3. Selection of a setting and a method of work- a site for study is
selected collaboratively with the client—usually a unit near the top
of the organization.
4. Data gathering and diagnosis- to obtain an in-depth picture of the
organization and its internal processes.
5. Intervention
6. Evaluation of results and disengagement
Management by Objectives (MBO)- subordinates work with superiors in
jointly setting performance goals.
- Popularized by Drucker and his associates
- Basic rationales: work-related goals must be clearly specified and
measurable, and that employees should participate in setting them to
become committed to their fulfillment.
- Goal period: 3 to 6 months and occasionally 12 months
- Productivity gain: 68 out of 70 cases—moderately successful
- Criteria for correct implementation of MBO:
● Employees must participate in setting personal performance
goals
- Too strong supervisor influence: employees may feel that
they have no real voice in the goal-setting process.
- Too weak supervisor influence: employees may set goals
that are much too easy and do not represent a motivating
challenge.
● Feedback concerning goal attainment must be provided
● Guidelines for improvement must be provided
- provide suggestions to improve work performance—otherwise,
employees may become frustrated and unmotivated by their
inability to achieve set goals.
● Goals must be realistic
- Too high: workers will be frustrated
- Too low: employees are not challenged
 ● The upper levels of the organization must support the
program
- include effective participation in the MBO program as part of
the supervisors’ own performance goals.
● Individual, work group, and organizational goals must be
equally emphasized
- workers must be oriented toward achieving not only their own
goals but also those of the group and the organization as a
whole.
Quality circles- small groups of volunteer employees from the same work
areas who meet regularly to identify, analyze, and solve product quality
problems and other work-related problems
- associated with Japanese management techniques—1980s
- unless quality circles are maintained and fully integrated into the
organizational system, their effectiveness will diminish in a year or two
- Goal: to get employees more involved in their jobs and to increase
their feelings of having some control over their work.
● Total Quality Management (TQM) (W. Edwards Deming & Joseph M.
Juran)
- also called continuous improvement or quality management
- implementation of continuous improvement work processes
- emphasizes team-based behavior directed toward improving
quality and meeting customer demands—there is reliance on the
talents and capabilities of both labor and management
- manages progress through data-based feedback
- focuses on employee involvement in the control of quality in
organizations
- criticism: it is so rational and technical in its approach that it
ignores the importance of social-political conditions and the
consequences of change
- Stages:
1. support of top management- senior management must
receive training on what TQM is, how it operates, and what
their responsibilities are
2. employees are trained on quality methods
3. actual implementation of TQM processes and
procedures- employees identify not only areas in which their
department or division excels but also deviations from quality
standards—potential causes are examined, corrected, and
brought within the range of acceptable quality
4. self-comparison analysis- organization compares its
effectiveness to that of competitors that set the benchmarks
for the industry
5. rewards are linked to the achievement of the TQM
intervention’s goals
● Six Sigma- a quality improvement process popularized by former GE
CEO Jack Welch
 - a comprehensive approach to organizational change that is based
on behavioral concepts and the use of statistical information to aid
in decision making
- evolved from the principles of Total Quality Management
- directed toward improving the processes that
- organizations use to meet their customers’ needs.
- the driving force: the continuous quest to reduce variability and
improve the mean
Sigma- term associated with the standard deviation, the statistical
index that reveals the spread or variability of scores in a
distribution.
dmaic
- 5 critical phases of process improvement (Eckes):
● Define- defining the organization’s customers, their
requirements, and the key organizational processes that affect
them
● Measure
● Analyze- variables measured should be analyzed to determine
why the process is not performing as desired
● Improve- determining the potential solutions to improve upon
the processes that are causing customer dissatisfaction.
● Control- developing, documenting, and implementing a
strategy to ensure that performance improvement remains at
the desired level.
Gainsharing- OD intervention that involves paying employees a bonus based
on improvements in productivity
- Components of gainsharing:
- suggestion system- encourages employees to think about
ways to improve productivity and then share those ideas
- election of department teams- composed of non
management employees who are charged with overseeing the
formal procedures used in considering, evaluating, and
implementing the employees’ suggestions
- review board- composed of both management and
nonmanagement employees whose purpose is to improve
communication between the two groups and allow
management to answer questions posed by non management
- based on a formula that generates a bonus pool of dollars
that are then distributed among employees
- 2 factors of gainsharing:
- participation- successful when employees have favorable
reactions to it
- justice- create a sense of justice, or fairness, by distributing
“gains” equally between the employer and employees.
reengineering/business process redesign- involves the fundamental
rethinking and redesign of business processes to improve critical
performance as measured by cost, quality, service, and speed
- implies a revolutionary change in the operation of the organization
 - 4 elements:
● Fundamental element- an examination of what the company
does and why
● Radical element- willingness to make crucial and far-reaching
organizational changes rather than merely superficial changes
● Dramatic element- focuses on making striking performance
improvements rather than slight performance improvements
● Processes- not just the tasks, jobs, or structures
❖ information technology (IT)- the new science of collecting, storing,
processing, and transmitting information
- occurs when a company computerizes all of its files and
records or switches from a manual inventory and bookkeeping
procedure to a computer-based one
positive psychology- focuses on the strengths and virtues of individuals
rather than on their weaknesses and impairments
- assumption: individuals want to be productive and lead meaningful
and enriching lives
❖ appreciative inquiry (AI)- engages employees by focusing on
positive messages, the best of what the employees have to offer, and
the affirmation of past and present strengths and successes
- uses the art of asking questions to search for the best in
people, organizations, and the world around them
- not about fixing the problems; it’s about building from strengths
- requires participants who are willing to let go of the problem
oriented approach and leaders who are willing to accept
appreciative inquiry’s less structured process
- deeply grounded in the emerging philosophy of positive
organizational behavior—emphasizes building on strengths
rather than trying to directly correct problems
- often designed to involve a large number of people
- “Four-D”/4 stages:
1. Discovery- to determine the strengths of the organization
and its people
2. Dream- information gathered at discovery is analyzed and
elaborated upon to arrive at a vision statement or focused
intent; envisioning what might be possible in an ideal
organization
3. Design- involves the process of dialogue; information is
used to for innovative ways to identify where the
organization should be going
4. Delivering/Destiny- participants establish specific
objectives and direction for their own organization on the
basis of their model of what will be; design of the future
company is sustained or maintained

Organizational transformation- any intervention primarily directed toward creating a new

vision for an organization and changing its beliefs, purpose, and mission
 ❖ Culture change- alteration of a pattern of beliefs, values, norms, and expectations
shared by organizational members
- determinants of successful culture change (T. G. Cummings and C.
G.Worley):
● the organization and change agent must develop a clear vision of the new
strategy, as well as of the shared values, attitudes, and action steps
needed to make it a reality
● culture change is likely to succeed only with support from top
management; in fact, this is especially the case with culture change
● senior executives not only have to support the culture-change efforts but
also must live by them
● the supportive systems of the organization must be intricately involved in
the financial and control systems, and management systems must provide
the support and resources necessary to give the culture change an
opportunity for success
● issues of selection—consideration should be given to hiring employees
(especially at higher levels) based on their match to or consistency with
the new shared values, beliefs, and behaviors
❖ Knowledge management- a method in which organizations enhance their
operations through attempts to generate, transform, disseminate, and use knowledge
- Characteristics of learning organizations:
● an organizational structure that facilitates learning
● sophisticated information system that allows companies to manage
knowledge for a competitive advantage
● human resources system that promotes and rewards employees for
continuous learning and knowledge management
● strong organizational culture that fosters openness and creativity
● supportive leaders who are active participants in learning and knowledge
management

Reorganization- process by which an organization reconfigures its structure and processes

to achieve greater efficiency (may or may not involve downsizing)
Downsizing- process by which an organization reduces its number of employees to achieve
greater overall efficiency
- also called reduction-in-force and right-sizing (implies that there is a size for
the organization that is “right” or correct for its environment)
- Effects of Downsizing to the structure:
Coordinating mechanism: direct supervision → standardization
Larger span of control
fewer managers are needed—less administrative control
organizational hierarchy becomes smaller
shape of the organization becomes flatter
decision making become more decentralized
Empowerment- process of giving employees in an organization more power and
decision-making authority within a context of less managerial oversight.
- the psychological outcome of structural changes in the organization
designed to provide power (Liden and Arad)
 - 4 general dimensions of empowerment (Spreitzer):
Meaning- derive personal significance from their work—get
“energized” about a given activity thus become connected
Competence- a sense of self-effectiveness—believe that they have
not only the needed skills and abilities but also the confidence that
they can perform successfully
Self-determination- represented by behaviors that are initiated and
regulated through choices as an expression of oneself
- have a sense of responsibility for and ownership
of their activity
Impact- the individual’s belief that he or she can affect or influence
organizational outcome—“making a difference”
Reasons for resistance to organizational change:
● Vested interest of organizational members- Change affects the status
quo—employees worry that positions may be eliminated or they may be terminated
or reassigned
● Fear of uncertainty- the known is more comfortable than the unknown—increases
the risk of personal loss
● Misunderstandings- lack of clarity
● Social disruption- Changes tend to disrupt established patterns of interaction
● Inconvenience- the normal routine of performing a job is affected when new
processes or procedures are introduced—may be perceived as an inconvenience
● Organizational incompatibility- Poor fit between the current organizational
structure and the new strategy and its desired outcome
● Lack of top-level support and commitment- employees perceive a lack of
enthusiasm, support, or commitment from management
● Rejection of outsiders- change is introduced by an external change agent—the
individual is considered an outsider who cannot possibly know what is best for the
organization.
● Direct costs- block actions that result in higher direct costs or lower benefits than
those in the existing situation
● Saving face- resist change as a political strategy to “prove” that the decision is
wrong or that the person encouraging change is incompetent (not-invented-here
syndrome)
Psychological Ownership/Disposition Toward Change and the Type of Change
● Self-initiated versus imposed change
○ Self-initiated change- the individual under takes change as a result of his or
her own initiative and volition
○ Imposed change- change initiated by others to which the individual is forced
to react.
● Evolutionary versus revolutionary change
○ Evolutionary change- involves incremental modifications to the
organization—does not suddenly alter the individual’s understanding of, or
relationship to, the organization
○ Revolutionary change- challenges the individual’s understanding of the
organization because the change alters the organization’s existing structure.
● Additive versus subtractive change
 ○ Additive change- starting a program or enlarging a job
○ Subtractive change- ending a program or downsizing

disposition toward change

(+) relationship Self-initiated change

Evolutionary change
Additive change
Psychological
ownership
(-) relationship Imposed change
Revolutionary change
Subtractive change

HUMAN RESOURCE MANAGEMENT (HRM)

- process of acquiring, training, appraising, and compensating employees, and of attending to
their labor relations, health and safety, and fairness concerns
● Evidence-based human resource management- the use of data, facts, analytics, scientific
rigor, critical evaluation, and critically evaluated research/case studies to support human
resource management proposals, decisions, practices, and conclusions—similar to being
scientific
- Sources of evidences:
- Actual measurements (employee reactions)
- Existing data (company profits)
- Research studies (research literature)
● Manager- someone who is responsible for accomplishing the organization’s goals, and who
does so by managing the efforts of the organization’s people.
● Managing- performing five basic functions: planning, organizing, staffing, leading, and
controlling
● Management process 5; planning, organizing, staffing, leading , controlling
Planning - establishing goals and standards
- developing rules and procedures
- developing plans and forecasts

Organizing - giving each subordinate a specific task

- establishing departments
- delegating authority to subordinates
- establishing channels of authority and communication
- coordinating the work of subordinates

Staffing - determining what type of people should be hired

- recruiting prospective employees
- selecting employees
- setting performance standards
- compensating employees
- evaluating performance
- counseling employees
- training and developing employees
 Leading - getting others to get the job done
- maintaining morale
- motivating subordinates

Controlling - setting standards

- checking to see how actual performance compares with these
standards
- taking corrective action as needed
● high-performance work systems- sets of human resource management practices that
together produce superior employee performance
- high-performing companies recruit more job candidates, use more selection tests, and
spend many more hours training employees.
- Illustrates 3 things:
○ shows examples of human resource metrics—managers use these to assess their
companies’ performance and to compare one firm with another
○ illustrates what employers must do to have high-performance systems
○ aspire to encourage employee involvement and self-management—aims is to nurture
an engaged, involved, informed, empowered, and self-motivated workforce
- “People” or Personnel Aspects of Management:
- Conducting job analyses - Appraising performance
- Planning labor needs - Communicating
- Recruiting - Training employees, and developing
- Selecting managers
- Orienting and training - Building employee relations and
- Managing wages and salaries engagement.
- Providing incentives and benefits
- What a Manager Should Know About:
- Equal opportunity and affirmative action
- Employee health and safety
- Handling grievances and labor relations
- Responsibilities of Line Managers
- Placing the right person in the right job - Interpreting the company’s policies
- Orientation and procedures
- Training employees for jobs that are new to - Controlling labor costs
them - Developing the abilities of each
- Improving the job performance of each person
person - Creating and maintaining
- Gaining creative cooperation and developing departmental morale
smooth working relationships - Protecting employees’ health and
physical conditions
- Typical HR Jobs:
● Recruiters- maintain contacts within the community—travel extensively to search for
qualified job applicants
● Equal employment opportunity (EEO) representatives/Affirmative action
coordinators- Investigate and resolve EEO grievances, examine organizational
practices for potential violations and compile and submit EEO reports
 ● Job analysts- collect and examine detailed information about job duties to prepare job
descriptions
● Compensation managers- develop compensation plans and handle the employee
benefits program
● Training specialists- plan, organize, and direct training activities
● Labor relations specialists- Advise management on all aspects of union–management
relations
- 4 HR Roles (Dave Ulrich): Strategic partner,Change agent,Administrative expert,Employee champion
● Strategic partner- tasked with communicating with so-called “internal clients” or “internal
customers”. Align HR activities and initiatives to organization’s overall strategy
● Change agent- helps adapt the organization for its next stage of growth or evolution.
Organizes training opportunities so employees can learn the new skills necessary for
change
● Administrative expert- focuses on delivering efficient and cost-effective HR services to
the organization. Professionals are responsible for designing, implementing, and
managing HR processes and systems that support the organization’s needs
(characteristic of Filipinos)
● Employee champion- advocate for employees’ needs and interests. Promotes a
positive work environment that promotes engagement, satisfaction, and retention
(characteristic of Filipinos)
- HR Teams:
● Corporate HR teams- assist top management in top-level issues such as developing the
personnel aspects of the company’s long-term strategic plan
● Embedded HR teams- teams with HR generalists, also known as “relationship
managers” or “HR business partners” that provide the selection and other assistance the
departments need
● Centers of expertise- specialized HR consulting firms within the company
- 5 main types of digital technologies:
● social media- recruit new employees
● mobile applications- monitor employee location and to provide digital photos at the
facility clock-in location to identify workers
● Gaming- enable employers to inject gaming features into training, performance
appraisal, and recruiting
● Cloud computing- enable employers to monitor and report on things like a team’s goal
attainment and to provide real-time evaluative feedback
● Data analytics- using statistical techniques, algorithms, and problem-solving to identify
relationships among data for the purpose of solving particular problems—relies on data
mining
○ Talent analytics- data analytics applied to human resource management
- help managers improve employee retention
- identify the factors that flag high potential employees who are more likely to
leave
- 3 HR performance levers: HR Department; Employee costs,Strategic Results
● HR department lever- HR manager ensures that the human resource management
function is delivering services efficiently
● Employee costs lever- the human resource manager takes a prominent role in advising
top management about the company’s staffing levels, and in setting and controlling the
firm’s compensation, incentives, and benefits policies
 ● Strategic results lever- the HR manager puts in place the policies and practices that
produce the employee competencies and skills the company needs to achieve its
strategic goals
- Society for Human Resource Management (SHRM) Body of Competency and
Knowledge:
- itemizes the competencies, skills, and knowledge and expertise human resource
managers need
● Leadership & Navigation- the ability to direct and contribute to initiatives and
processes within the organization
● Ethical Practice- the ability to integrate core values, integrity, and accountability
throughout all organizational and business practices
● Business Acumen- the ability to understand and apply information with which to
contribute to the Organization’s strategic plan
● Relationship Management- the ability to manage interactions to provide service and
to support the organization
● Consultation- the ability to provide guidance to organizational stakeholders
● Critical Evaluation- the ability to interpret information with which to make business
decisions and recommendations
● Global & Cultural Effectiveness- the ability to value and consider the perspectives
and backgrounds of all parties
● Communication- the ability to effectively exchange information with stakeholders
- Functional Areas of HR:
- Talent Acquisition & Retention - Technology & Data
- Employee Engagement - HR in the Global Context
- Learning & Development - Diversity & Inclusion
- Total Rewards - Risk Management
- Structure of the HR Function - Corporate Social Responsibility
- Organizational Effectiveness & - U.S. Employment Law &
Development Regulations
- Workforce Management - Business & HR Strategy
- Employee Relations

- Strategic human resource management- formulating and executing human resource

policies and practices that produce the employee competencies and behaviors the company
needs to achieve its strategic aims
- Three-step sequence:
Set the firm’s strategic aims → Pinpoint the employee behaviors and skills we need
to achieve these strategic aims→ Decide what HR policies and practices will enable
us to produce these necessary employee behaviors and skills
- Steps of Management Planning Process:
1. setting objectives
2. making basic planning forecasts
3. reviewing alternative courses of action
4. evaluating which options are best
5. choosing and implementing your plan
- 7 Steps of Strategic Management Process:
1. Define the current business—ask, “What business are we in now?”
 2. Perform external and internal audits—evaluate the firm’s internal and external
strengths, weaknesses, opportunities, and threats
3. Formulate a new direction
4. Translate the mission into strategic goals—decide on strategic goals
5. Formulate strategies to achieve the strategic goals—choose specific strategies
or courses of action
6. Implement the strategies—actually hiring (or firing) people, building (or closing)
plants, and adding (or eliminating) products and product lines
7. Evaluate performance
- 3 types/levels of strategic planning: corporate, business and functional
● corporate-level strategy- identifies the portfolio of businesses that, in total,
comprise the company and how these businesses relate to each other
○ concentration (single-business) corporate strategy- the company offers one
product or product line
○ diversification corporate strategy- the firm will expand by adding new product
lines
○ vertical integration strategy- the firm expands by, perhaps, producing its own
raw materials, or selling its products directly
○ consolidation strategy- company reduces its size
○ geographic expansion- the company grows by entering new territorial markets,
for instance, by taking the business abroad.
● business-level competitive strategy
○ competitive strategy- identifies how to build and strengthen the business unit’s
long-term competitive position in the marketplace
○ Competitive advantage- any factors that allow a company to differentiate its
product or service from those of its competitors to increase market share
- 3 standard competitive strategies:
- Cost leadership- becoming the low-cost leader in an industry
- Differentiation- firm seeks to be unique in its industry along dimensions
that are widely valued by buyers
- Focusers- carve out a market niche—offer a product or service that their
customers cannot get from generalist competitors
● Functional strategies- identify what each department must do to help the business
accomplishes its strategic goals

● HR Value Proposition- employers wanting their human resource managers to add value by
boosting profits and performance
● Adding value- helping the firm and its employees improve in a measurable way as a result
of the human resource manager’s actions
● Employee engagement- being psychologically involved in, connected to, and committed to
getting one’s jobs done—drives performance and productivity
- associated with significant increases in sales, product quality, productivity, safety
incidents at work, retention and absenteeism, and revenue growth
- companies with highly engaged employees are also less likely to be unionized
- companies with highly engaged employees have 26% higher revenue per employee
- Steps to foster employee engagement:
- providing supportive supervision
 - making sure employees understand how their departments contribute to the
company’s success
- making sure employees see how their efforts contribute to achieving the company’s
goals
- making sure employees get a sense of accomplishment from working at the firm
- making sure employees are highly involved
- Steps to Employee Engagement HR strategy:
1. set measurable objectives
2. hold an extensive leadership development program
3. institute new employee recognition programs
4. improve internal communications
5. institute new employee development program
6. make a number of changes to compensation and other policies
● Ethics- the standards someone uses to decide what his or her conduct should be
● Plan- shows the course of action for getting from where you are to the goal
● Policies and procedures- provide day-to-day guidance employees need to do their jobs in
a manner that is consistent with the company’s plans and goals
● Policies- set broad guidelines delineating how employees should act.
● Procedures- spell out what to do if a specific situation arises
● strategic plan- the company’s overall plan for how it will match its internal strengths and
weaknesses with its external opportunities and threats in order to maintain a competitive
position
- similar to but not the same as business models
● business model- a company’s method for making money in the current business
environment
- pinpoints whom the company serves, what products or services it provides, what
differentiates it, its competitive advantage, how it provides its product or service, and,
most importantly, how it makes money
● Strategy- a course of action
● strategy map- summarizes how each department’s performance contributes to achieving
the company’s overall strategic goals
- helps the manager and each employee visualize and understand the role his or her
department plays in achieving the company’s strategic plan
● strategic management- the process of identifying and executing the organization’s strategic
plan by matching the company’s capabilities with the demands of its environment
● SWOT chart- managers use it to compile and organize the company strengths,
weaknesses, opportunities, and threats
● PEST factors
- Political factors
- Economic factors
- Social factors
- Technological factors
● vision statement- a general statement of the firm’s intended direction; it shows, in broad
terms, “what we want to be come
● mission statement- summarizes what the company’s main tasks are today
● HR scorecard- a process for assigning financial and nonfinancial goals or metrics to the
human resource management—related strategy-map chain of activities required for
achieving the company’s strategic aims (quantified version)
 - derives from the “balanced scorecard” planning approach
- quantifies HR activities, the resulting employee behaviors, and the resulting firm-wide
strategic outcomes and performance
● digital dashboard- presents the manager with desktop graphs and charts, showing a
computerized picture of how the company is doing on all the metrics from the HR scorecard
process
● human resource metrics- The quantitative gauge of a human resource management
activity, such as employee turnover, hours of training per employee, or qualified applicants
per position
● Strategy-based metrics- measure the activities that contribute to achieving a company’s
strategic aims
● HR audit- an analysis by which an organization measures where it currently stands and
determines what it has to accomplish to improve its HR function
- generally involves using a checklist to review the company’s human resource functions
(recruiting, testing, training, and so on), as well as ensuring that the firm is adhering to
regulations, laws, and company policies
- Typical areas audited:
- Roles and headcount - Group benefits
- Compliance with federal, state, and local - Payroll
employment-related legislation - Documentation and record keeping
- Recruitment and selection - Training and development
- Compensation - Employee communications
- Employee relations - Termination and transition policies
and practices
● Data mining- the set of activities used to find new, hidden, or unexpected patterns in data

OTHER TOPICS
- Types of Assets:
● Financial Assets- cash and securities
● Physical Assets- properties and equipment
● Intangible Assets
○ Human Capital- attributes, life experiences, knowledge, inventiveness and energy
that employees invest in their work
○ Customer capital- value of relationships with persons/organizations outside the
company
○ Social capital- relationships in a company
○ Intellectual capital- codified knowledge in a company
- Types of Destructive Leaders:
● Tyrannical- may accept the goals of the organization that seeks to achieve those goals
through actively manipulating and humiliating subordinates
● Derailed- behaves abusive lead just like that tyrannical leader but engages in
anti-organizational behavior such as laziness , fraud , and theft
● Supportive-disloyal- shows consideration for subordinate but violates the goals of the
organization by undermining goal accomplishment
- The Toxic Triangle of Destructive Leadership:
Destructive leaders - charisma
 - Personalized power
- narcissism
- negative life themes
- ideology of hate

Susceptible followers ● Conformers

- Unmet needs
- Low core self-evaluations
- Low maturity
● Colluders
- Ambition
- Similar worldview
- Bad values

Conducive environments - instability

- perceived threat
- cultural values
- lack of checks and balances and ineffective
institutions
- Andragogy (Malcolm Knowles)
- assumes that adults have the needs to know why they are learning something
- assumes that adults have a need to be self-directed
- assumes that adults bring more work-related experience to the learning situation
- assumes that adults have a problem-centered approach to learning
- assumes that adults are motivated to learn by both extrinsic and intrinsic motivations
- Theories/Approaches to Transfer of Training:
- Theory of Identical Elements- Transfer occurs when what is being learned in a training
session is very identical to what the trainee has to perform on the job. It involves the
concept of near transfer
- Stimulus Generalization Approach- construct training so that the most important
features or general principles are emphasized. It involves the concept of far transfer
- Cognitive Theory of Transfer- the likelihood of transfer depends on the trainees’ ability
to retrieve learned capabilities. It provides trainees with meaningful material that
strengthens a link between work environment and the learned capability
- Evaluating Training:
Formative Evaluation Summative Evaluation

- Takes place during design and - takes place after training is run
development - examines extent to which
- ensures that training is trainees have changed as a
well-organized and that trainees result participating in the
will learn from and will become training program
satisfied with the progress - involves measuring return of
- as a variety of people about investment
training content and objectives - involves gathering quantitative
- Involves pilot testing data from test, ratings of behavior,
or objective measures of
performance
 - Levels of Employee Input:
● Absolute- employee Has some responsibility for making decisions and is responsible to
the consequences of decisions
● Shared/Participative/Team- Employee has an equal vote in making decisions.
Employees reach consensus with others to make decisions
● Advisory- employee makes recommendations, suggests new ideas, provide input
● Ownership of own product- employee becomes responsible for own quality
● Following- work is closely checked/ approved by others. Employee is closely or
constantly supervised
- Motivational Metaphors:
Metaphor Characteristic

Person as machine automatic response by individual

Pushed by internal needs responds to needs and drives

Pulled by environmental response to external stimuli and reinforcement

stimuli

Person as scientist voluntary response by individual, analyzes internal and

external information

Person as judge hypothesizes about the foundation for events and

actions of others

Person as intentional develops goals and action plans

HRM vs. HRD

Human Resource Development- refers to an assortment of training programs that help people
adjust to their new roles and learn more about the organization and its culture.
● Training and Development
○ Training- is the "systematic acquisition of skills, rules, concepts, or attitudes that
result in improved performance"
○ It depends on the organization which skills are needed to be developed via training
(needs assessment)
● Career Management
○ The process for enabling employees to better understand and develop their career
skills and interests, and to use these skills and Interests more effectively—both within
the company or after they leave
● Career Development
○ Career Development- is the proactive, lifelong process of finding your footing and
advancing your career path.
○ It's an intentional approach to creating a meaningful career that includes setting
long-term goals, exploring professional development opportunities, and gaining new
work experience
○ Usually an employee-initiated task but organization nowadays provide their
employees such opportunities to develop their career (job rotation, job enrichment,
job enlargement, skills training)
 ○ Ultimately, career development is at the hands of the employee
○ Types of Career Development
■ Formal- This includes short-term training programs, education, certifications,
workshops, or seminars that can help build skill sets for a particular job or
industry
■ Informal - This includes mentorship opportunities, networking events, online
courses, internships, and volunteering experiences.
● Career Planning
○ The deliberate process through which someone becomes aware of personal skills,
interests, knowledge, motivations, and other characteristics; acquires information
about opportunities and choices; identifies career-related goals; and establishes
action plans to attain specific goals
○ Careers Today
■ Corporate Ladder is a thing of the past already
■ Today, more skills mean more opportunities. More opportunities mean more
flexibility.
■ With the fast-paced nature of today's economy, flexibility wins overs
specialization
● Talent Management
○ Refers to the attraction, selection and retention of employees
○ Proper job analysis is a must
○ Proper selection procedures
○ Management of turnovers
■ How to manage turnovers
- Determine the rate of turnover - Career development

- Determine why employees are - Healthcare benefits

leaving

- Pay - Perceived Unfairness

- Promotional opportunities - Economic Downturn (lessens

turnover so consider this also)

- Work-life balance

■ Strategies to Retain Talent

- Exit Interviews - Discuss Careers

- Convince them to stay if - Provide Directions — manage

possible employee expectations (clarify
goals)

- Realistic Job Previews - Offer Flexibility

- Raise Pay - Counteroffer (for valuable

employees)
 - Hire Smart — Select the right
employee
● Human Resource Development Manager
○ The goal of an HR Development manager is to empower their employees so that
they can become a major asset of the company
○ They give employees training, and opportunities for career growth with the hope that
they will use what they learned for the organization.
○ They are also in charge of retaining talent which is ironic

Similarities and Differences with HRM

● Both are beneficial for the organization and the employees for productivity
● Main difference is the time orientation.
● HRM is focused on the present needs of the organization and its members
● HRD is focused on the future needs of the organization and its members
● Some activities overlap (Appraisal/Training)
● HRM is about whom and how to employ for the best outcome
● HRD is about making the employee the best asset for the best outcome

Additional

Electronic Performance Monitoring (EPM) Systems- Use computer network technology to

allow managers to monitor their employees’ computers. They allow managers to monitor the
employees rate, accuracy, and time spent working online. EPM can improve productivity, but also
seems to raise employees' stress.
Human Resources Information System (HRIS)-helps companies manage and automate
core HR processes. This HR software systems support benefits administration, time and
attendance, payroll, and other workflows, as well as the storage of employee data, such as
personal, demographic, and compensation information.
Learning Management System (LMS)- is a software program that takes care of your
employee training program.
Transition shock- refers to feelings of anxiety, instability, and insufficiency experienced in
the roles, responsibilities, relationships, knowledge, and expectations when moving to a new
environment
Culture shock- a normal process of adapting to a new culture
Reality shock- a phenomenon that occurs when a new employee's high expectations and
enthusiasm confront the reality of a boring, unchallenging job.
Burnout- a state of emotional, physical, and mental exhaustion caused by excessive and
prolonged stress. It occurs when you feel overwhelmed, emotionally drained, and unable to meet
constant demands.
Constructive dismissal- when you're forced to leave your job against your will because of
your employer's conduct. The reasons you leave your job must be serious, for example, they: do not
pay you or suddenly demote you for no reason.
Employee Turnover- the number of employees who quit the organization or are asked to
leave and are replaced by new employees.
 Layoff- the temporary or permanent termination of employment by an employer for reasons
unrelated to the employee's performance (ex. due to a decline in demand for their products or
services, seasonal closure, or during an economic downturn.)
Employment-At-Will- when an employer may terminate employment at any time and
without need of any cause or ground.

● Types of Changes in the Organization

○ Merger and Acquisition Change- combining operations from multiple organizations
into one
○ De-Merger Change- splitting of and organization into two or more separate entities
○ Relocation Change- moving an organization or parts of it to a new location

● Four Types of Appraisal Situations:

○ Satisfactory-promotable- the easiest interview: the person's performance is
satisfactory and promotion looms. Objective is to develop specific development
plans.
○ Satisfactory-not promotable- for employees whose performance is satisfactory
but for whom promotion is not possible. The objective is to maintain satisfactory
performance. The best option is usually to find incentives that are important to the
person and sufficient to maintain performance. This might include extra time off, a
small bonus or recognition.
○ Unsatisfactory-correctable performance- objective is to lay out an action or
development plan for correcting the unsatisfactory performance.
○ Unsatisfactory-uncorrectable performance- may be particularly tense.
Dismissal is often the preferred option.

● How to Handle a Defensive Subordinate

When a supervisor tells someone his or her performance is poor, the first reaction is
often denial. Denial is a defense mechanism.
1. Recognize that defensive behavior is normal.
2. Never attack a person's defenses. Don't try to "explain someone to
themselves" (as in, "You know the reason you're using that excuse is that you can't
bear to be blamed."). Instead, concentrate on the fact ('sales are down").
3. Postpone action. Sometimes it's best to do nothing. Employees may react
to sudden threats by hiding behind their defenses. Given sufficient time, a more
rational reaction takes over.
4. Recognize your limitations. The supervisor is (probably) not a psychologist.
Offering understanding is one thing; trying to deal with psychological problems is
another.

● Dialogic Approaches to Diagnosing Organizations

- means opportunity eccentric—instead of focusing on the problem (known as
diagnostic approach), here we seek to find opportunities for growth given an
organization's strengths and successes.
○ Search Conference - this process enables a large group to collectively create
plans for the future.
○ Appreciative Inquiry - assumes that an organization should build around what
works, rather than trying to fix what does not. Instead of focusing on
 problems, this focuses on how to create more of the exceptional performance
that occurs when strengths are harnessed.
○ Open Space Technology - self structuring process that enables participants to
determine topics of discussion. Meetings are held on the agreed-upon topics
amongst participants.

● Types of Practical Model of Integration and Differentiation Across Cultures

(Thatchenkery)
○ Laissez-faire- The client is provided what they ask for with no reflection on
whether the tools or interventions are appropriate to their context
○ Parochial- the OD practices or interventions from one culture is transplanted
to another without considering cultural differences
○ Diffused- also called culture-specific or local OD, the practitioner seeks to
understand local issuers and differences and applies interventions and adapts
tool to be culturally-sensitive
○ Global- Also called synchronous OD, there is sensitivity and awareness of
diversity across cultures but also the synthesis across this diversity.