Organizational Behavior Ediploma

What is organizational behaviour and why is it important?
What are organizations like as work settings?

What is the nature of managerial work?
How do we learn about organizational behaviour?
What is organizational behaviour and why is it important?
Workplace success depends on:
Respect for people.

Understanding of human behaviour in complex organizational systems.
Individual commitment to flexibility, creativity, and learning.
Individual willingness to change.
Organizations and their members are challenged to:
Simultaneously achieve high performance and high quality of life.

Embrace ethics and social responsibility.
Respect the vast potential of demographic and cultural diversity among people.
Recognize the impact of globalization.
Organizational behaviour.
Study of human behaviour in organizations.
A multidisciplinary field devoted to understanding individual and group behaviour, interpersonal processes,
and organizational dynamics.
Reasons for importance of scientific thinking.
The process of data collection is controlled and systematic.

Proposed explanations are carefully tested.
Only explanations that can be scientifically verified are accepted.
Contingency approach.
Tries to identify how different situations can be best understood and handled.
Important contingency variables include:
Environment.
Technology.
Tasks.
Structure.
People.
Modern workplace trends.
Commitment to ethical behaviour.

Importance of human capital.
Demise of command and control.
Emphasis on teamwork.
Pervasive influence of information technology.
Respect for new workforce expectations.
Changing definition of jobs and career.
What are organizations like as work settings?
An organization is a collection of people working together in a division of labor to achieve a common purpose.
The core purpose of an organization is the creation of goods and services.
Missions and mission statements focus attention on the core purpose.
Mission statements communicate:
A clear sense of the domain in which the organizations products and services fit.
A vision and sense of future aspirations.
A strategy is a comprehensive plan that guides organizations to operate in ways that allow them to outperform their
competitors.
Key managerial responsibilities include strategy formulation and implementation.
Knowledge of OB is essential to effectively strategy implementation.
Stakeholders.
People, groups, and institutions having an interest in an organizations performance.

Customers, owners, employees, suppliers, regulators, and local communities are key stakeholders.
Interests of multiple stakeholders sometimes conflict.
Executive leadership often focuses on balancing multiple stakeholder expectations.
Organizational culture and diversity.
Organizational culture refers to the shared beliefs and values that influence the behaviour of organizational
members.
Positive organizational cultures:
Have a high-performance orientation.
Emphasize teamwork.
Encourage risk taking.
Emphasize innovation.
Respect people and workforce diversity.

Success in business world is tied to valuing diversity.
Organizational effectiveness approaches.

Systems resource approach focuses on inputs.
Internal process approach focuses on the transformation process.
Goal approach focuses on outputs.
Strategic contingencies approach focuses on impact on key stakeholders.
Longitudinal views of organizational effectiveness.

Short-run emphasis on goal accomplishment, resource utilization, and stakeholder satisfaction.
Intermediate-run emphasis on organizations adaptability and development potential.
Long-run emphasis on survival.
Study Question 3: What is the nature of managerial work?

_Managers perform jobs that involve directly supporting the work efforts of others.
_Managers assume roles such as coordinator, coach, or team leader.
The management process.
The nature of managerial work.
Managers work long hours.

Managers are busy people.
Managers are often interrupted.
Managerial work is fragmented and variable.
Managers work mostly with other people.
Managers spend a lot of time communicating.
Managerial mind-sets.
An effective manager is one whose organizational unit, group, or team consistently achieves its goals while its
members remain capable, committed, and enthusiastic.
Key results of effective management:
Task performance.
Job satisfaction.
Reflective mind-set managing ones self.

Analytic mind-set managing organizational operations and decisions.
Worldly mind-set managing in a global context.
Collaborative mind-set managing relationships.
Action mind-set managing change.
Managerial skills and competencies.
A skill is an ability to translate knowledge into action that results in a desired performance.
Categories of skills.
Technical.
Human.
Conceptual.
How do we learn about organizational behaviour?
Learning is an enduring change in behaviour that results from experience.

Organizational learning is the process of acquiring knowledge and utilizing information to adapt successfully to changing
circumstances.
What is a high-performance organization?

What is multiculturalism, and how can workforce diversity be managed?
How do ethics and social responsibility influence human behaviour in organizations?
What are key OB transitions in the new workplace?
High-performance organizations.
Value and empower people, and respect diversity.
Mobilize the talents of self-directed work teams.
Use cutting-edge technologies to achieve success.
Thrive on learning and enable members to grow and develop.
Are achievement-, quality-, and customer-oriented, as well as being sensitive to the external environment.
Study Question 1: What is a highperformance

organization?
_Stakeholders.
The individuals, groups, and other
organizations affected by an
Organizational Behaviour: Chapter 2 30
organizations performance.
_Value creation.
The extent to which an organization
satisfies the needs of strategic
constituencies.
organization?
organization?
_ Total quality management (TQM).
A total commitment to:
High-quality results.
Continuous improvement.
Customer satisfaction.
Meeting customers needs.
Doing all tasks right the first time.
Continuous improvement focuses on two questions:
Is it necessary?
If so, can it be done better?
organization?
_ Human capital.
The economic value of people with job-relevant
abilities, knowledge, ideas, energies, and
commitments.
_ Knowledge workers.
People whose minds rather than physical capabilities
create value for the organization.
_ Intellectual capital.
The performance potential of the expertise,
competencies, creativity, and commitment within an
organizations workforce.
organization?
_Empowerment.
Allows people, individually and in groups, to

use their talents and knowledge to make
decisions that affect their work.
_Social capital.
The performance potential represented in the
relationships maintained among people at
work.
organization?
_Learning and high-performance cultures.
Uncertainty highlights the importance of
organizational learning.
High-performance organizations are designed
for organizational learning.
A learning organization has a culture that
values human capital and invigorates learning
for performance enhancement.
organization?
Study Question 2: What is multi-culturalism,
and how can workforce diversity be managed?
_ Workforce diversity.
Describes differences among people with respect to
age, race, ethnicity, gender, physical ability, and
sexual orientation.
_ Multiculturalism.
Refers to pluralism and respect for diversity and
individual differences in the workplace.
_ Inclusivity.
The degree to which the organizations culture
respects and values diversity.
_Diversity biases in the workplace.
Prejudice.
Discrimination.
The glass ceiling effect.
Sexual harassment.
Verbal abuse.
Pay discrimination.
_ Managing diversity.
Developing a work environment and organizational
culture that allows all organization members to reach
their full potential.
_ A diversity mature organization is created when:
Managers ensure the effective and efficient utilization
of employees in pursuit of the corporate mission.
Managers consider how their behaviours affect
diversity.
_ Well-managed workforce diversity increases
human capital.
Study question 3: How do ethics and
social responsibility influence human
behaviour in organizations?
_Ethical behaviour.
Good or right as opposed to bad
or wrong in a particular setting.
_The public demands that people in
organizations act according to high
moral standards.
_Immoral managers.
Do not subscribe to any ethical principles;
pursuit of self-interest.
Amoral managers.
_ Ethics is simply not on this managers radar
screen.
_Moral managers.
Incorporate ethical principles and goals into
their personal behaviour .
Study question 3: How do ethics and social
responsibility influence human behaviour in
organizations?
_Ways of thinking about ethical behaviour.
Utilitarian view the greatest good for the
greatest number of people.
Individualism view best serving long-term
self-interests.
Moral-rights view respects and protects the
fundamental rights of all human beings.
Justice view fair and impartial in the
treatment of all people.
_Different types of justice.
Procedural justice properly following rules
and procedures in all cases.
Distributive justice treating people the
same under a policy, regardless of
demographic differences.
Interactional justice treating people affected
by a decision with dignity and respect.
Study question 3: How do ethics and social
responsibility influence human behaviour in
organizations?
_Ethical dilemmas.
Occur when someone must choose
whether or not to pursue a course of
action that, although offering the
potential of personal or
organizational benefit or both, may
be considered unethical.
_Rationalizations for unethical behaviour.
Pretending the behaviour is not really unethical
or illegal.
Saying the behaviour is really in the
organizations or persons best interest.
Assuming the behaviour is acceptable if others
dont find out about it.
Presuming that superiors will support and
protect you.
_Organizational social responsibility.
The obligation of organizations to behave in
ethical and moral ways as institutions of the
broader society.
Managers should commit organizations to:
Pursuit of high productivity.
Corporate social responsibility.
A whistleblower exposes others wrongdoings
in order to preserve high ethical standards.

Study question 4: What are key OB
transitions in the new workplace?
_Corporate governance and ethics
leadership.
Society expects and demands ethical decisions
and actions from businesses and other social
institutions.
Corporate governance.
The active oversight of management decisions,
corporate strategy, and financial reporting by
Boards of Directors.
_Corporate governance and ethics
leadership (cont.).
Ethics leadership.
Making business and organizational decisions with
high moral standards that meet the ethical test of
being good and not bad, and of being right
and not wrong. .
Integrity.
Acting in ways that are always honest, credible,
and consistent in putting ones values into practice.
_Positive organizational behaviour.
Quality of work life.
The overall quality of human experience in the
workplace.
Commitment to quality of work life is an important
value within organizational behaviour.
Theory Y provides the theoretical underpinnings
for contemporary quality of work life concepts.
_Positive organizational behaviour (cont.).
Positive organizational behaviour focuses on
practices that value human capacities and
encourage their full utilization.
Positive organizational behaviour is based on
the core capacities of:
Confidence.
Hope.
Optimism.
Resilience.
_Globalization, job migration, and
organizational transformation.
Globalization.
The worldwide interdependence of resource flows,
product markets, and business competition.
Job migration.
The shifting of jobs from one nation to another.
_Globalization, job migration, and
organizational transformation (cont.).
Global outsourcing.
Involves employers cutting back on domestic jobs
and replacing them with contract workers in other
nations.
Job migration and global outsourcing have
contributed to organizations redesigning
themselves for high performance in a changed
world.
_Personal management and career planning.

Shamrock organizations.
Relatively small core group of permanent, full-time
employees with critical skills.
Outside operators contracting to core group to
perform essential daily activities.
Part-timers hired by core group on an as-needed
basis.
_Personal management and career planning
(cont.).
Personal management.
Understand ones self, exercising initiative,
accepting responsibility, working well with others,
and continually learning from experience.
Self-monitoring.
Observing and reflecting on ones own behaviour
and acting in ways that adapt to the situation.
Chapter 3 Study Questions
_Why is globalization significant for
organizational behaviour?
_What is culture and how can we
understand cultural differences?
_How does cultural diversity affect people
at work?
_What is a global view on organizational
learning?
Study Question 1: Why is globalization
significant for organizational behaviour?
_ Most organizations must achieve high
performance within a complex and competitive
global environment.
_ Globalization refers to the complex economic
networks of international competition, resource
suppliers, and product markets.
_Forces of globalization.
Rapid growth in information technology and
electronic communication.
Movement of valuable skills and investments.
Increasing cultural diversity.
Implications of immigration.
Increasing job migration among nations.
Impact of multicultural workforces.
_Globalization is contributing to the
emergence of regional economic alliances.
_Important regional alliances.
European Union (EU).
North American Free Trade Agreement
(NAFTA).
Asia-Pacific Economic Co-operation Forum
(APEC).
_Outsourcing.
Contracting out of work rather than accomplishing it
with a full-time permanent workforce.
_Off shoring.
Contracting out work to persons in other countries.
_Job migration.
Movement of jobs from one location or country to
another.
_Global managers.
Know how to conduct business in multiple
countries.
Are culturally adaptable and often
multilingual.
Think with a worldview and are able to map
strategy in the global context.
Have a global attitude.
Have a global mindset.
_Culture.
The learned, shared way of doing things in a
particular society.
The software of the mind.
Helps define boundaries between different
groups and affects how their members relate to
one another.
Cultural intelligence is the ability to identify,
understand, and act with sensitivity and
effectiveness in cross-cultural situations.
Study Question 2: What is culture and how can
we understand cultural differences?
_Language.
Perhaps the most visible aspect of culture.
Whorfian hypothesis considers language as
a major determinant of thinking.
Low-context cultures the message is
conveyed by the words used.
High-context cultures words convey only a
limited part of the message.
_Time orientation.
Polychronic cultures.
Circular view of time.
No pressure for immediate action or performance.
Emphasis on the present.
Monochronic cultures.
Linear view of time.
Create pressure for action and performance.
Long-range goals and planning are important.
_Use of space.
Proxemics.
The study of how people use space to
communicate.
Reveals important cultural differences.
Concept of personal space varies across
cultures.
Space is arranged differently in different
cultures.
_Religion.
A major element of culture.
Can be a very visible aspect of culture.
Influences codes of ethics and moral behaviour.
Influences conduct of economic matters.
_Values and national culture.
Cultures vary in underlying patterns of values
and attitudes.
Hofstedes five dimensions of national culture:
Power distance.
Uncertainty avoidance.
Individualism-collectivism.
Masculinity-femininity.
Long-term/short-term orientation.
_Power distance.
The willingness of a culture to accept status
and power differences among members.
Respect for hierarchy and rank in
organizations.
Example of a high power distance culture
Indonesia.
Example of a low power distance culture
Sweden.
_Uncertainty avoidance.
The cultural tendency toward discomfort with
risk and ambiguity.
Preference for structured versus unstructured
organizational situations.
Example of a high uncertainty avoidance
culture France.
Example of a low uncertainty avoidance
culture Hong Kong.
_Individualism-collectivism.
The cultural tendency to emphasize individual
or group interests.
Preferences for working individually or in
groups.
Example of an individualistic culture
United States.
Example of a collectivist culture Mexico.
_Masculinity-femininity.
The tendency of a culture to value
stereotypical masculine or feminine traits.
Emphasizes competition/assertiveness versus
interpersonal sensitivity/relationships.
Example of a masculine culture Japan.
Example of a feminine culture Thailand.
_Long-term/short-term orientation.
The tendency of a culture to emphasize futureoriented
values versus present-oriented values.
Adoption of long-term or short-term
performance horizons.
Example of a long-term orientation culture
South Korea.
Example of a short-term orientation culture
United States.
_Understanding cultural differences helps in
dealing with parochialism and
ethnocentrism.
Parochialism assuming that the ways of
ones own culture are the only ways of doing
things.
Ethnocentrism assuming that the ways of
ones culture are the best ways of doing
things.

_Cultural differences in handling
relationships with other people.
Universalism versus particularism.
Relative emphasis on rules and consistency, or on
relationships and flexibility.
Individualism versus collectivism.
Relative emphasis on individual freedom and
responsibility, or on group interests and consensus.
relationships with other people (cont.).
Neutral versus affective.
Relative emphasis on objectivity and detachment,
or on emotion and expressed feelings.
Specific versus diffuse.
Relative emphasis on focused and narrow
involvement, or on involvement with the whole
person.
relationships with other people (cont.).
Achievement versus prescription.
Relative emphasis on performance-based and
earned status, or on ascribed status.
_Cultural differences in attitudes toward
time.
Sequential view of time.
Time is a passing series of events.
Synchronic view of time.
Time consists of an interrelated past, present, and
future.
_Cultural differences in attitudes toward the
environment.
Inner-directed cultures.
Members view themselves as separate from nature
and believe they can control it.
Outer-directed cultures.
Members view themselves as part of nature and
believe they must go along with it.
Study Question 3: How does cultural
diversity affect people at work?
_Multinational corporation (MNC).
A business firm that has extensive
international operations in more than one
foreign country.
Have a total world view without allegiance to
any one national home.
Have enormous economic power and impact.
Bring benefits and controversies to host
countries.
_Multicultural workforces and expatriates.
Styles of leadership, motivation, decision
making, planning, organizing, and controlling
vary from country to country.
Expatriates.
People who live and work abroad for extended

periods of time.
Can be very costly for employers.
Progressive employers take supportive measures to
maximize potential for expatriate success.
_Ethical behaviour across cultures.
Ethical challenges result from:
Cultural diversity.
Variations in governments and legal systems.
Prominent current issues.
Corruption and bribery.
Poor working conditions.
Child and prison labor.
Business support of repressive governments.
Sweatshops.
_Advice regarding cultural relativism and
ethical absolutism.
Multinational businesses should adopt core or
threshold values that respect and protect
fundamental human rights.
Beyond the threshold, businesses should adapt
and tailor actions to respect the traditions,
foundations, and needs of different cultures.
Study Question 4: What is a global
view on organizational learning?
_Organizational learning.
The process of acquiring the knowledge
necessary to adapt to a changing
environment.
_Global organizational learning.
The ability to gather from the world at large
the knowledge required for long-term
organizational adaptation.
_Are management theories universal?
Answer is no.
Cultural influences should be carefully
considered in transferring theories and their
applications across cultures.
_Best practices around the world.
Global organizational learning should identify
best practices around the world.
Potential high-performance benchmarks exist
throughout the world.
Cultural diversity enriches global organization
learning.
_What is personality?
_How do personalities differ?
_What are value and attitude differences
among individuals, and why are they
important?
_What are individual differences and how
are they related to workforce diversity?
Study Question 1: What is personality?
_Personality.
The overall profile or combination of

characteristics that capture the unique nature
of a person as that person reacts and interacts
with others.
Combines a set of physical and mental
characteristics that reflect how a person looks,
thinks, acts, and feels.
Predictable relationships are expected between
peoples personalities and their behaviours.
_ Heredity and environment.
Heredity sets the limits on the development of
personality characteristics.
Environment determines development within these
limits.
About a 50-50 heredity-environment split.
Cultural values and norms play a substantial role in
the development of personality.
Social factors include family life, religion, and many
kinds of formal and informal groups.
Situational factors reflect the opportunities or
constraints imposed by the operational context.
_Personality and the self-concept.
Personality dynamics.
The ways in which an individual integrates and
organizes social traits, values and motives,
personal conceptions, and emotional adjustments.
Self-concept.
The view individuals have of themselves as
physical, social, and spiritual or moral beings.
Self-esteem.
Self-efficacy.
Study Question 2: How do
personalities differ?
_ Big Five personality dimensions.
Extraversion
Being outgoing, sociable, assertive.
Agreeableness.
Being good-natured, trusting, cooperative.
Conscientiousness.
Being responsible, dependable, persistent.
Emotional stability.
Being unworried, secure, relaxed.
Openness to experience.
Being imaginative, curious, broad-minded.
_Social traits.
Surface-level traits that reflect the way a
person appears to others when interacting in
various social settings.
An important social trait is problem-solving
style.
The way a person goes about gathering and
evaluating information in solving problems and
making decisions.
_Information gathering in problem solving.
Getting and organizing data for use.
Sensation-type individuals prefer routine and
order and emphasize well-defined details in
gathering information.
Intuitive-type individuals like new problems
and dislike routine.

_Information evaluation in problem solving.
Making judgments about how to deal with
information once it has been collected.
Feeling-type individuals are oriented toward
conformity and try to accommodate
themselves to other people.
Thinking-type individuals use reason and
intellect to deal with problems and downplay
emotions.
_Personal conception traits.
The way individuals tend to think about their
social and physical settings as well as their
major beliefs and personal orientation.
Key traits.
Locus of control.
Authoritarianism/dogmatism.
Machiavellianism.
Self-monitoring.
_Locus of control.
The extent to which a person feels able to
control his/her own life.
Externals.
More extraverted in their interpersonal
relationships and more oriented toward the world
around them.
Internals.
More introverted and more oriented towards their
own feelings and ideas.
Study Question 2: How do personalities differ?
_Authoritarianism/dogmatism.
Authoritarianism.
Tendency to adhere rigidly to conventional values
and to obey recognized authority.
Dogmatism.
Tendency to view the world as a threatening place.
_ People with a high-Machiavellian personality:
Approach situations logically and
thoughtfully.
Are capable of lying to achieve personal goals.
Are rarely swayed by loyalty, friendships, past
promises, or others opinions.
Are skilled at influencing others.
Try to exploit loosely structured situations.
Perform in a perfunctory or detached manner
in highly structured situations.
_ People with a low-Machiavellian personality:
Accept direction imposed by others in loosely
structured situations.
Work hard to do well in highly structured
situations.
Are strongly guided by ethical considerations.
Are unlikely to lie or cheat.

_Self-monitoring.
A persons ability to adjust his/her behaviour to
external situational factors.
High self-monitors.
Sensitive to external cues.
Behave differently in different situations.
Low self-monitors.
Not sensitive to external cues.
Not able to disguise their behaviours.
_Emotional adjustment traits.
How much an individual experiences distress
or displays unacceptable acts.
Type A orientation.
Characterized by impatience, desire for
achievement, and perfectionism.
Type B orientation.
Characterized as more easygoing and less
competitive in relation to daily events.
Study Question 3: What are value and attitude
differences among individuals, and why are they
important?
_Values.
Broad preferences concerning appropriate
courses of action or outcomes.
Values influence behaviour and attitudes.
Parents, friends, teachers, and external
reference groups can influence individual
values.
Values develop as a product of learning and
experiences.
important?
Pick up Figure 4.5 from the textbook.
important?
_Gordon Allports values categories.
Theoretical values.
Economic values.
Aesthetic values.
Social values.
Political values.
Religious values.
important?
_Maglinos categories of workplace values.
Achievement.
Helping and concern for others.
Honesty.
Fairness.
important?
_Attitudes.
Are influenced by values and are acquired
from the same sources as values.
Are more specific and less stable than values.
An attitude is a predisposition to respond in a
positive or negative way to someone or
something in ones environment.
important?
important?
_The attitude-behaviour relationship is
stronger when:
Attitudes and behaviours are more specific.
There is freedom to carry out the behavioural
intent.
The person has experience with the attitude.
important?
_Attitudes and cognitive consistency.
Cognitive dissonance.
Describes a state of inconsistency between an
individuals attitudes and his or her behaviour.
Cognitive dissonance can be reduced by:
Changing the underlying attitude.
Changing future behaviour.
Developing new ways of explaining or
rationalizing the inconsistency.
important?
_Attitudes and cognitive consistency (cont.).
Dissonance reduction choices are influenced
by:
The degree of control a person has over the
situation.
The magnitude of the rewards involved.
Study Question 4: What are individual differences
and how are they related to workforce diversity?
_Workforce diversity.
The presence of individual human
characteristics that make people different
from one another.
_Challenge of workforce diversity.
Respecting individuals perspectives and
contributions and promoting a shared sense
of organizational vision and identity.
_As workforce diversity increases, the
possibility of stereotyping and
discrimination increases.
Demographic characteristics may serve as the
basis for stereotypes.
_Equal employment opportunity.
Nondiscriminatory employment decisions.
No intent to exclude or disadvantage legally
protected groups.
Affirmative action.
Remedial actions for proven discrimination or
statistical imbalance in workforce.
_ Demographic characteristics.
The background characteristics that help shape what a
person becomes.
_ Important demographic characteristics for the
workplace.
Gender.
Age.
Able-bodiedness.
Race.
Ethnicity.
_Gender.
No consistent differences between men and
women in:
Problem-solving abilities.
Analytical skills.
Competitive drive.
Motivation.
Learning ability.
Sociability.
_Gender (cont.).
As compared to men, women:
Are more conforming.
Have lower expectations of success.
Have higher absenteeism.
Are more democratic as leaders.
_ Age.
Aging workforce.
Older workers are more susceptible to stereotyping.
Age discrimination lawsuits are increasingly common
in the United States.
Small businesses tend to value older workers.
Experienced workers, who are usually older, tend to
perform well, be absent less, and have low turnover.
_Able-bodiedness.
Despite evidence of effective job performance,
most disabled persons are unemployed.
Most disabled persons want to work.
More firms are likely to hire disabled workers
in the future.
_Racial and ethnic groups.
African Americans, Asian Americans, and
Hispanic Americans make up an everincreasing
percentage of the American
increasing workforce.
Potential for stereotypes and discrimination
can adversely affect career opportunities.
Race cannot be a BFOQ.
_Important lessons regarding demographic
characteristics.
Respect and deal with the needs and concerns
of people with different demographics.
Avoid linking demographics to stereotypes.
Demography is not a good indicator of
individual-job fits.
_Aptitude.
A persons capability of learning something.
_Ability.
A persons existing capacity to perform the
various tasks needed for a given job.
Includes relevant knowledge and skills.
_What is the perception process?
_What are common perceptual
distortions?
_How can perceptions be managed?
_What is attribution theory?
Study Question 1: What is the
perception process?
_Perception.
The process by which people select, organize,
interpret, retrieve, and respond to information.
People process information inputs into
responses involving feeling and action.
The quality or accuracy of a persons
perceptions has a major impact on responses.
_Information attention and selection.
Selective screening.
Lets in only a tiny portion all the information that
is available.
Two types of selective screening.
Controlled processing.
Screening without perceivers conscious
awareness.
_Organization of information.
Schemas.
Cognitive frameworks that represent organized
knowledge about a given concept or stimulus
developed through experience.

Types of schemas:
Self schemas.
Person schemas.
Script schemas.
Person-in-situation schemas.
_Information interpretation.
Uncovering the reasons behind the ways
stimuli are grouped.
People may interpret the same information
differently or make different attributions about
information.
_Information retrieval.
Attention and selection, organization, and
interpretation are part of memory.
Information stored in memory must be
retrieved in order to be used.
Study Question 2: What are common
perceptual distortions?
_Stereotypes or prototypes.
Combines information based on the category
or class to which a person, situation, or object
belongs.
Individual differences are obscured.
Strong impact at the organization stage.
_Halo effects.
Occur when one attribute of a person or
situation is used to develop an overall
impression of the individual or situation.
Likely to occur in the organization stage.
Important in the performance appraisal
process.
_ Selective perception.
The tendency to single out those aspects of a
situation, person, or object that are consistent
with ones needs, values, or attitudes.
Strongest impact is at the attention stage.
Perception checking with other persons can
help counter the adverse impact of selective
perception.
_Projection.
The assignment of ones personal attributes to
other individuals.
Especially likely to occur in interpretation
stage.
Projection can be controlled through a high
degree of self-awareness and empathy.
_Contrast effects.
Occur when an individual is compared to other
people on the same characteristics on which
the others rank higher or lower.
People must be aware of the impact of contrast
effects in many work settings
_Self-fulfilling prophecy.
The tendency to create or find in another
situation or individual that which one expected
to find.
Also called the Pygmalion effect.
Can have either positive or negative outcomes.
Managers should adopt positive and optimistic
approaches to people at work.
Study Question 3: How can
perceptions be managed?
_Impression management.
A persons systematic attempt to behave in
ways that create and maintain desired
impressions in others eyes.

Successful managers:
Use impression management to enhance their own
images.
Are sensitive to other peoples use of impression
management.
_Distortion management.
Managers should:
Balance automatic and controlled information
processing at the attention and selection stage.
Broaden their schemas at the organizing stage.
Be attuned to attributions at the interpretation
stage.
Study Question 4:What is
attribution theory?
_Attribution theory aids in perceptual
interpretation by focusing on how people
attempt to:
Understand the causes of a certain event.
Assess responsibility for the outcomes of the
event.
Evaluate the personal qualities of the people
involved in the event.
_Factors influencing internal and external
attributions.
Distinctiveness consistency of a persons
behaviour across situations.
Consensus likelihood of others responding
in a similar way.
Consistency whether an individual
responds the same way across time.
_Fundamental attribution error.
Applies to the evaluation of someones else
behaviour.
Attributing success to the influence of
situational factors.
Attributing failure to the influence of personal
factors.
_Self-serving bias.
Applies to the evaluation of our own behaviour.
Attributing success to the influence of
personal factors.
Attributing failure to the influence of
situational factors.
_ Techniques for effectively managing perceptions
and attributions.
Be self-aware.
Seek a wide range of differing information.
Try to see a situation as others would.
Be aware of different kinds of schemas.
Be aware of perceptual distortions.
Be aware of self and impression management.
Be aware of attribution theory implications.
_ What is motivation?
_What do the content theories suggest about
individual needs and motivation?
_What do the process theories suggest about
individual motivation?
_What are reinforcement theories and how
are they linked to motivation?
_ Motivation refers to forces within an individual
that account for the level, direction, and
persistence of effort expended at work.
Direction an individuals choice when presented
with a number of possible alternatives.
Level the amount of effort a person puts forth.

Persistence the length of time a person stays with a
given action.
_ Content theories.
Motivation results from the individuals attempts to
satisfy needs.
_ Major content theories.
Hierarchy of needs theory.
ERG theory.
Acquired needs theory.
Two-factor theory.
_ Each theory offers a slightly different view.
_ERG theory.
Existence needs.
Desire for physiological and material well-being.
Relatedness needs.
Desire for satisfying interpersonal relationships.
Growth needs.
Desire for continued personal growth and
development.
Study Question 2: What do the content theories
suggest about individual needs and motivation?
_ Acquired needs theory.
Need for achievement (nAch).
The desire to do something better or more efficiently, to solve
problems, or to master complex tasks.
Need for affiliation (nAff).
The desire to establish and maintain friendly and warm
relations with others.
Need for power (nPower).
The desire to control others, to influence their behaviour, or to
be responsible for others.
Study Question 2: What do the content theories
suggest about individual needs and motivation?
Study Question 3: What do the process theories
suggest about individual motivation?
_Process theories.
Focus on the thought processes through which
people choose among alternative courses of
action.
_The chapter focuses on two process
theories:
Equity theory.
Expectancy theory.
_ Equity theory.
People gauge the fairness of their work outcomes in
relation to others.
Felt negative inequity.
Individual feels he/she has received relatively less
than others in proportion to work inputs.
Felt positive inequity.
Individual feels he/she has received relatively more
than others in proportion to work inputs.
_Equity restoration behaviours.
Change work inputs.
Change the outcomes received.
Leave the situation.
Change the comparison person.
Psychologically distort the comparisons.
Take actions to change the inputs or outputs of
the comparison person.
_ Coping methods for dealing with equity
comparisons.
Recognize that equity comparisons are inevitable in the
workplace.
Anticipate felt negative inequities when rewards are given.
Communicate clear evaluations for any rewards given.
Communicate an appraisal of performance on which the reward
is based.
Communicate comparison points that are appropriate in the
situation
_ A persons motivation is a multiplicative function
of expectancy, instrumentality, and valence (M =
E x I x V).
Motivational implications of expectancy theory.
_ Motivation is sharply reduced when, expectancy,
instrumentality, or valence approach zero.
Motivation is high when expectancy and
instrumentality are high and valence is strongly
positive.
_Extrinsic rewards.
Positively valued work outcomes given to the
individual by some other person.
_Intrinsic rewards.
Positively valued work outcomes that the
individual receives directly as a result of task
performance.
_Guidelines for the distribution of extrinsic
rewards.
Clearly identify the desired behaviours.
Maintain an inventory of rewards that have the
potential to serve as positive reinforcers.
Recognize individual differences in the
rewards that will have a positive value for
each person.
_ Guidelines for the distribution of extrinsic
rewards (cont.).
Let each person know exactly what must be done to
receive a desirable reward; set clear target antecedents
and give performance feedback.
Allocate rewards contingently and immediately upon
the appearance of the desired behaviours.
Allocate rewards wisely in terms of scheduling the
delivery of positive reinforcement.
Study Question 4: What are reinforcement
theories and how are they linked to motivation?
_Reinforcement.
The administration of a consequence as a
result of a behaviour.
Proper management of reinforcement can
change the direction, level, and persistence of
an individuals behaviour.
_Law of effect.
Theoretical basis for manipulating
consequences of behaviour.

Behaviour that results in a pleasant outcome is
likely to be repeated while behaviour that
results in an unpleasant outcome is not likely
to be repeated.
_Organizational behaviour modification (OB
Mod).
The systematic reinforcement of desirable
work behaviour and the nonreinforcement or
punishment of unwanted work behaviour.
Uses four basic strategies:
Positive reinforcement.
Negative reinforcement.
Punishment.
Extinction.
_Positive reinforcement.
The administration of positive consequences
to increase the likelihood of repeating the
desired behaviour in similar settings.
Rewards are not necessarily positive
reinforcers.
A reward is a positive reinforcer only if the
behaviour improves.
_Principles governing reinforcement.
Law of contingent reinforcement.
The reward must be delivered only if the desired
behaviour is exhibited.
Law of immediate reinforcement.
The reward must be given as soon as possible after
the desired behaviour is exhibited.
_Scheduling reinforcement.
Continuous reinforcement.
Administers a reward each time the desired
behaviour occurs.
Intermittent reinforcement.
Rewards behaviour periodically either on
the basis of time elapsed or the number of
desired behaviours exhibited.
_Negative reinforcement.
Also known as avoidance.
The withdrawal of negative consequences to
increase the likelihood of repeating the desired
behaviour in a similar setting.
_Punishment.
The administration of negative consequences
or the withdrawal of positive consequences to
reduce the likelihood of repeating the behaviour
in similar settings.
_Implications of using punishment.
Punishing poor performance enhances

performance without affecting satisfaction.
Arbitrary and capricious punishment leads to
poor performance and low satisfaction.
Punishment may be offset by positive
reinforcement from another source.
_Extinction.
The withdrawal of the reinforcing
consequences for a given behaviour.
The behaviour is not unlearned; it simply is not
exhibited.
The behaviour will reappear if it is reinforced
again.
_ Ethical issues with reinforcement usage.
Is improved performance really due to reinforcement?
Is the use of reinforcement demeaning and
dehumanizing?
Will managers abuse their power by exerting external
control over behaviour?
How can we ensure that the manipulation of
consequences is done in a positive and constructive
fashion?
_How are motivation, job satisfaction, and
performance related?
_What are job-design approaches?
_How are technology and job design
related?
_What alternative work arrangements are
used today?
Study Question 1: How are motivation,
job satisfaction, and performance related?
_Job satisfaction.
The degree to which individuals feel positively
or negatively about their jobs.
Job satisfaction can be assessed:
By managerial observation and interpretation.
Through use of job satisfaction questionnaires.
_ Implications of key work decisions for job
satisfaction.
Joining and remaining a member of an organization.
Satisfied workers have better attendance and less turnover.
Working hard in pursuit of high levels of task
performance.
Three alternative relationships between performance and
satisfaction.
_Argument: satisfaction causes
performance.
Managerial implication to increase
employees work performance, make them
happy.
Job satisfaction alone is not a consistent
predictor of work performance.
_Argument: performance causes
satisfaction.
Managerial implication help people achieve

high performance, then satisfaction will
follow.
Performance in a given time period is related
to satisfaction in a later time period.
Rewards link performance with later
satisfaction.
_Argument: rewards cause both satisfaction
and performance.
Managerial implications.
Proper allocation of rewards can positively
influence both satisfaction and performance.
High job satisfaction and performance-contingent
rewards influence a persons work performance.
Size and value of the reward should vary in
proportion to the level of ones performance.
Study question 2: What are jobdesign
approaches?
approaches?
_Scientific management.
Sought to improve work efficiency by creating
small, repetitive tasks and training workers to
do these tasks well.
Job simplification.
Standardizes work procedures and employs people
in clearly defined and highly specialized tasks.
Intent is to increase efficiency, but it may be
decreased due to the motivational impact of
unappealing jobs.
approaches?
_Job enlargement and job rotation.
Job enlargement.
Increases task variety by combining into one job
two or more tasks that were previously assigned to
separate workers.
Job rotation.
Increases task variety by periodically shifting
workers among jobs involving different tasks.
Enlargement and rotation use horizontal
loading to increase job breadth.
approaches?
_Job enrichment.
The practice of enhancing job content by
building motivating factors such as
responsibility, achievement, recognition, and
personal growth into the job.
Adds planning and evaluating duties to the job
content.
Uses vertical loading to increase job depth.
approaches?
_Ways to increase job depth.
Allow workers to plan.
Allow workers to control.
Maximize job freedom.
Increase task difficulty.
Help workers become task experts.
Provide performance feedback.
Increase performance accountability.
Provide complete units of work.

approaches?
_Concerns about job enrichment.
Job enrichment can be very costly.
Controversy concerning whether pay
must be increased when jobs are
enriched.
Herzbergs argument regarding the impact
of competitive pay and enriched jobs.
Study question 3: What are the keys
to designing motivating jobs?
_ Core job characteristics.
Skill variety.
Degree to which a job requires a variety of different activities
and involves the use of a number of different skills and
talents of the individual.
Task identity.
Degree to which the job requires the completion of a whole
and identifiable piece of work; one that involves doing a job
from beginning to end with a visible outcome.
_ Core job characteristics (cont.).
Task significance.
Degree to which the job is important and involves a
meaningful contribution to the organization or society in
general.
Autonomy.
Degree to which the job gives the employee substantial
freedom, independence, and discretion in scheduling the
work and in determining the procedures used in carrying it
out.
_ Core job characteristics (cont.).
Job feedback.
Degree to which carrying out the work activities provides
direct and clear information to the employee regarding how
well the job has been done. .
_Motivating potential score.
Combined together, the core job
characteristics create a motivating potential
score (MPS).
MPS indicates the degree to which the job is
capable of motivating people.
A jobs MPS can be raised by enriching the
core characteristics.
_Critical psychological states.
When the core characteristics are highly
enriched, three critical psychological states
are positively influenced.
Experienced meaningfulness of work.
Experienced responsibility for work outcomes.
Knowledge of actual results of work activities.
Positive psychological states create positive
work outcomes.
_Enriched core job characteristics will
create positive psychological states, which
in turn will create positive work outcomes
only when:
Employee growth-need strength is high.
The employee has the requisite knowledge and
skill.
Employee context satisfaction exists.
_Social information processing theory.
Social information in organizations influences
the way people perceive their jobs and respond
to them.
Research evidence shows that both social
information and the core characteristics are
important determinants of how people
perceive their jobs.
_Managerial and global implications of
enriching jobs.
Not everyones job should be enriched.
Job enrichment can apply to groups.
Culture has a substantial impact on job
enrichment.
Study Question 4: How are technology
and job design related?
_Sociotechnical systems.
Reflects the importance of integrating people
and technology to create high-performance
work systems.
Essential for new developments in job design,
given the impact of computers and information
technology in the modern workplace.
_Flexible manufacturing systems.
Adaptive computer-based technologies and
integrated job designs that are used to shift
work easily and quickly among alternative
products.
Workers develop expertise across a wide range
of functions.
Jobs offer a wealth of potential for enriched
core job characteristics.
_Workflow and process reengineering.
Process reengineering is the analysis,
streamlining, and reconfiguration of actions
and tasks required to reach a work goal.
This approach for improving workflows and
job designs is driven by one question:
What is necessary and what else can be eliminated?
Study Question 5: What alternative
work arrangements are used today?
_Compressed work weeks.
Any scheduling of work that allows a full-time
job to be completed in fewer than the standard
five days.
4/40 is most common form.
_ Compressed work weeks (cont.).
Advantages.
For workers: added time off.
For organizations: lower absenteeism and
improved recruiting of new employees.
Disadvantages.
For workers: increased fatigue and family
adjustment problems.
For organizations: work scheduling problems,
customer complaints, and possible union
opposition.
_ Flexible working hours.
Gives individuals a daily choice in the timing of
their work commitments.
Advantages:
For workers: shorter commuting time, more leisure
time, more job satisfaction, and greater sense of
responsibility.
For organizations: less absenteeism, tardiness, and
turnover; more commitment; and higher
performance.
_Job sharing.
One full-time job is assigned to two or more
persons who divide the work according to
agreed-upon hours.
Advantages.
For workers: less burnout and higher energy level.
For organizations; attracting talented people who
who would otherwise be unable to work.
_Work at home and the virtual office.
Telecommuting.
Work done at home or in a remote location via use
of computers and advanced communication
linkages with a central office or other employment
locations.
Variants of telecommuting.
Flexiplace.
Hoteling.
Virtual office.
_ Advantages of telecommuting.
For workers: flexibility, comforts of home, and choice
of work locations consistent with ones lifestyle.
For organizations: costs savings, efficiency, and
improved employee satisfaction.
_ Disadvantages of telecommuting.
For workers: isolation from co-workers, decreased
identification with work team, and technical
difficulties with computer linkages.
_Part-time work.
Temporary part-time work.
An employee is classified as temporary and works
less than the standard 40-hour work week.
Permanent part-time work.
An employee is classified as a permanent member
of the workforce and works less than the standard
40-hour work week.
_ Advantages of part-time work.
For workers: appeals to people who want to
supplement other jobs or do not want full-time work.
For organizations: lower labor costs, ability to better
accommodate peaks and valleys of business cycle, and
better management of retention quality.
_Disadvantages of part-time work.
For workers: added stress and potentially diminished
performance if holding two jobs, failure to qualify for

benefits, and lower pay rates than full-time
counterparts.
_What is goal setting?
_What is performance appraisal?
_What are compensation and rewards?
_What are human resource
development and person-job fit?
Study Question 1: What is goal setting?
_Goal setting guidelines.
Difficult goals are more likely to lead to
higher performance than are less difficult
ones.
Specific goals are more likely to lead to higher
performance than are no goals or vague or
general ones.
Task feedback, or knowledge of results, is
likely to motivate people toward higher
performance by encouraging the setting of
higher performance goals.
_Goal setting guidelines (cont.).
Goals are most likely to lead to higher
performance when the people have the
abilities and the feeling of self-efficacy
required to accomplish them.
Goals are most likely to motivate people
toward higher performance when they are
accepted and there is commitment to them.
_Goal setting and MBO.
Management by objectives (MBO) is a process
of joint goal setting between a supervisor and
a subordinate.
MBO is consistent with the goal setting
guidelines derived from the Locke and Latham
model.
MBO establishes performance goals consistent
with higher level work unit and organizational
objectives.
_ Potential problems with MBO.
Too much paperwork. in documenting goals and
accomplishments.
Too much emphasis on:
Goal-oriented rewards and punishments.
Top-down goals.
Goals that are easily stated in objective terms.
Individual goals instead of group goals.
MBO may need to be implemented organization-wide.
Study Question 2: What is performance
appraisal?
_Performance appraisal.
Helps both the manager and subordinate
maintain the organization-job-employee
characteristics match
The process of systematically evaluating
performance and providing feedback upon
which performance adjustments can be made.
appraisal?
_Functions of performance appraisal.
Define the specific job criteria against which
performance will be measured.

Measure past job performance accurately.
Justify rewards, thereby differentiating
between high and low performance.
Define ratees needed development
experiences.
appraisal?
_Two general purposes of good
performance appraisal.
Evaluation.
Concerned with such issues as promotions,
transfers, terminations, and salary increases.
Feedback and development.
Let workers know their status relative to firms
expectations and performance objectives.
appraisal?
_Who does the performance appraisal?
Traditionally done by ratees immediate
superior.
People other than immediate superior may
have better information on certain aspects of
ratees performance.
360-degree evaluation provides appraisal
information from multiple perspectives.
appraisal?
_Performance appraisal dimensions and
standards.
Output measures.
Quantity of work output.
Quality of work output.
Activity measures.
Behavioural measures that are typically obtained
from the evaluators observation and rating.
appraisal?
_Comparative methods of performance
appraisal.
Ranking.
Raters rank order people from best to worst.
Paired comparisons.
Raters compare each person with every other
person.
Forced distribution.
Raters place a specific proportion of employees
into each performance category.
appraisal?
_ Absolute methods of performance appraisal.
Graphic rating scales.
Raters assign scores on a list of dimensions related
to high performance outcomes in a given job.
Critical incident diary records.
Rater records incidents of unusual success or
failure in a given performance aspect.
Behaviourally anchored rating scales (BARS).
Rater identifies observable job behaviours.
appraisal?
_ Absolute methods of performance appraisal
(cont.).
Behavioural observation scale (BOS).
Rater rates each observable job behaviour on a fivepoint
frequency scale.
Management by objectives.
Jointly established goals used as standards against
which the subordinates performance is evaluated.

appraisal?
_ To be meaningful, an appraisal system must be:
Reliable provide consistent results across time.
Valid actually measure people on relevant job
content.
_ Measurement errors can threaten the reliability or
validity of performance appraisals.
appraisal?
_ Measurement errors in performance appraisal.
Halo errors.
Raters evaluate on several different dimensions and
give a similar rating for each dimension.
Leniency errors.
Raters tend to give everyone relatively high
ratings.
Strictness errors.
Raters tend to give everyone relatively low ratings.
appraisal?
_ Measurement errors in performance appraisal
(cont.).
Central tendency errors.
Raters lump everyone together around the average
or middle.
Low differentiation errors.
Raters restrict themselves to a small part of the
rating scale.
Examples include leniency, strictness, and central
tendency errors.
appraisal?
_ Measurement errors in performance appraisal
(cont.).
Recency errors.
Raters allow recent events to exercise undue
influence on ratings.
Personal bias errors.
Raters let personal biases, such as stereotypes,
unduly influence the ratings.
Cultural bias errors.
Raters allow cultural differences of employees to
influence the performance appraisal.
appraisal?
_ Ways to reduce rating errors in performance
appraisals.
Training raters to understand the evaluation process
and recognize errors.
Ensuring that raters observe ratees on an ongoing
basis.
Not having the rater evaluate too many ratees.
Ensuring the clarity and adequacy of performance
dimensions and standards.
Avoiding terms that have different meanings for
different raters.
appraisal?
_Guidelines for ensuring the legality of
performance appraisal systems.
Base appraisal on job requirements as
reflected in performance standards.
Ensure that employees clearly understand the
performance standards.
Use clearly defined dimensions.
Use behaviourally-based dimensions supported
by observable evidence.
appraisal?
_Guidelines for ensuring the legality of
performance appraisal systems (cont.).
Avoid abstract trait names.
Ensure that scale anchors are brief and
logically consistent.
Ensure that the system is valid and
psychometrically sound.
Provide an appeal mechanism to handle
appraisal disagreements.
Study Question 3: What are
compensation and rewards?
_Pay as an extrinsic reward.
Pay can help organizations attract and retain
highly capable workers, and help satisfy and
motivate these workers.
High levels of job performance must be
viewed as the path through which high pay can
be achieved.
Merit pay bases an individuals salary or wage
increase on the persons performance.
_Pay as an extrinsic reward (cont.).
Merit pay should be based on realistic and
accurate measures of individual work
performance.
Some people argue that merit pay plans ignore
the high degree of task interdependence
among employees.
_ Creative pay practices.
Skill-based pay.
Rewards people for acquiring and developing jobrelevant
skills.
relevant Gain-sharing plans.
Give workers an opportunity to share in
productivity gains through increased earnings.
Profit-sharing plans.
Reward employees based on the entire
organizations performance
_ Creative pay practices (cont.).
Employee stock ownership plans (ESOPs).
Give company stock to employees or allow them to
purchase it at a price below market value
Lump-sum pay increases.
Provide wage or salary increase in one or more
lump-sum payments.
Flexible benefit plans.
Allow workers to select benefits according to their
individual needs.
Study Question 4: What are human
resource development and person-job fit?
_Human resource development (HRD) and
the person-job fit.
HRD and the person-job fit are key
contributing activities in performance
management and rewards.
Human resource strategic planning provides
the foundation for HRD and the person-job fit.
Staffing, training, and career planning and
development are important functions in HRD
and achieving a person-job fit.
_Job analysis.
The process and procedures used to collect

and classify information about tasks the
organization needs to complete.
Identifies the worker characteristics needed to
perform the job.
Forms the basis for a job description and job
specifications.
_ Recruitment.
The process of attracting the best qualified individuals
to apply for a given job.
Typical recruitment steps.
Advertisement of a position vacancy.
Preliminary contact with potential job candidates.
Preliminary screening to obtain a pool of candidates.
Recruitment approaches are external or internal.
Realistic job previews.
_Selection.
A series of steps from initial applicant
screening to final hiring of the new employee.
Selection process.
Completing application materials.
Conducting an interview.
Completing any necessary tests.
Doing a background investigation.
Deciding to hire or not to hire.
_Socialization.
Process that adapts employees to the
organizations culture.
Occurs during and after completion of the
staffing process.
Phases of socialization.
Anticipatory socialization.
Encounter.
Change and acquisition.
_Training.
A set of activities that provides the
opportunity to acquire and improve job-related
skills.
Types of training.
On-the-job training involves job instruction while
performing the job in the actual workplace.
Off-the-job training commonly involves lectures,
videos, and simulations, and increasingly is done
through e-training.
_ Adult life cycle and career stages.
The different problems and prospects of the adult life
cycle affect peoples work and careers.
Career stages reflect the different responsibilities and
achievements associated with peoples working lives.
Life cycle and career stages.
Entry and establishment or the provisional
adulthood stage.
Advancement or the first adulthood stage.
Maintenance, withdrawal, and retirement or the
second adulthood stage.
.

_What is the nature of groups in
organizations?
_What are the stages of group development?
_What are the foundations of group
performance?
_How do groups make decisions?
Study Question 1: What is the nature
of groups in organizations?
_A group is a collection of two or more
people who work with one another
regularly to achieve common goals.
In a true group, members are mutually
_dependent on one another and interact with
one another.
_Hot groups thrive in conditions of crisis
and competition.
_ Effective groups achieve high levels of:
Task performance.
Members attain performance goals regarding quantity,
quality, and timeliness of work results.
Members satisfaction.
Members believe that their participation and experiences are
positive and meet important personal needs.
Team viability.
Members are sufficiently satisfied to continue working
together on an ongoing basis.
_How groups help organizations
Groups are good for people.
Groups can improve creativity.
Groups can make better decisions.
Groups can increase commitments to action.
Groups help control their members.
Groups help offset large organization size.
_Situations in which groups are superior to
individuals.
When there is no clear expert in a particular
problem or task.
When problem solving can be handled by a
division of labor and the sharing of
information.
When creativity and innovation are needed.
_ Potential benefits for group members.
People learn from each other and share job skills and
knowledge.
Groups are important sources of need satisfaction for
their members.
Members can provide emotional support for each
other in times of crisis or pressure.
Members contributions can help them experience
self-esteem and personal involvement.
_Social loafing.
The tendency of people to work less hard in a
group than they would individually.
Reasons for social loafing.
Individual contributions are less noticeable in the
group context.
Some individuals prefer to see others carry the
workload.
_Ways of preventing social loafing.
Define member roles and tasks to maximize
individual interests.
Raise accountability by identifying
individuals performance contributions to the
group.
Link individual rewards to performance
contributions to the group.
_Social facilitation.
The tendency for a persons behaviour to be
influenced by the presence of others.
Positively affects performance when a person
is proficient on the task.
Negatively affects task performance when the
task is not well-learned.
_Formal groups.
Officially designated to serve a specific
organizational purpose.
The head of a formal group is responsible for
the groups performance and serves a linkingpin
role.
May be permanent or temporary.
Permanent work groups are command
groups.
Temporary work groups are task groups.
_Types of formal groups.
Cross-functional teams or task forces.
Engage in special problem-solving efforts
drawing on input of the functional areas.
Project teams.
Formed to complete a specific task with a
well-defined end point.
Virtual group.
Members work together via computers.
_Informal groups.
Emerge without being officially designated by
the organization.
Types of informal groups.
Friendship groups.
Interest groups.
_Effects of informal groups.
Can help people get their jobs done.
Can speed up workflow by supplementing
formal lines of authority.
Can satisfy needs that are thwarted or unmet
by the formal group.
Can provide members with social satisfaction,
security, and a sense of belonging.
Study Question 2: What are the
stages of group development?
_Forming stage.
Initial entry of members to a group.
Member challenges.

Getting to know each other.
Discovering what is considered acceptable
behaviour.
Determining the groups real task.
Defining group rules.
_Storming stage.
A period of high emotionality and tension
among group members.
Member challenges.
Hostility and infighting.
Formation of coalitions and cliques.
Clarification of members expectations.
Giving attention to obstacles to group goals.
Understanding one anothers interpersonal styles.
Finding ways to accomplish group goals while
satisfying individual needs.
_Norming stage.
The point at which the group really begins to
come together as a coordinated unit.
Member challenges.
Holding group together by maintaining a positive
balance.
Letting the desire for group harmony obscure
group problems.
Being mistaken about reaching ultimate maturity .
_Performing stage.
Marks the emergence of a mature, organized,
and well-functioning group.
Member challenges.
Meeting complex tasks and conflicts in creative
ways.
Being motivated by group goals and achieving
satisfaction.
Continuing to improve relationships and
performance.
Adapting to changing opportunities and demands.
_Adjourning stage.
A well-integrated group is:
Able to disband when its work is finished.
Willing to work together in the future.
Particularly important for temporary groups.
foundations of group performance?
_Tasks.
Technical demands of a task.
Routineness, difficulty, and information
requirements.
Tasks that are complex in technical demands
require unique solutions and more information
processing.
_Tasks (cont.).
Social demands of a task.
Relations, ego involvement, and controversies over

ends and means.
Tasks that are complex in social demands
involve difficulties in reaching agreement on
goals or methods for accomplishing them.
_ Goals, rewards, and resources.
Long-term performance relies on:
Appropriate goals.
Well-designed reward systems.
Adequate resources.
A groups performance can suffer when:
Goals are unclear, unchallenging, or arbitrarily imposed.
Goals are focused too much on individuals.
Adequate budgets, facilities, good work methods and
procedures, and the best technologies are not available.
_Technology.
Provides the means to get work accomplished.
The right technology must be available for the
task at hand.
Workflow technology can affect the way
group members interact.
_Membership characteristics.
A group must have the right skills and
competencies available for task performance
and problem solving.
Homogeneous groups may not perform well if they
lack the requisite experiences, skills, and
competencies.
Heterogeneous groups may perform well if they
effectively utilize a variety of experiences, skills,
and competencies.
_Membership characteristics (cont.).
Diversity-consensus dilemma.
Increasing diversity among group members makes
it harder for group members to work together, even
though the diversity itself expands the skills and
perspectives available for problem solving.
FIRO-B theory.
Identifies individual differences in how people
relate to one another in groups.
Based on needs to express and receive feelings of
inclusion, control, and affection.
Groups whose members have compatible
characteristics are likely to be more effective.
Groups whose members have incompatible
characteristics are likely to be less effective.
Status.
A persons relative rank, prestige, or standing in a
group.
Status congruence.
Occurs when a persons position within the group
is equivalent in status to positions held outside the
group.
When status incongruence is present, problems will
likely occur.

_Group size.
Can make a difference in a groups
effectiveness.
As group size increases, performance and
member satisfaction increase up to a point.
As a group size continues to grow,
communication and coordination problems
often set in, and performance and satisfaction
may decline.
Problem-solving groups should have 5 to 7
members.
_Group dynamics concern the forces
operating within groups that affect the way
members relate to and work with one
another.
_From a systems perspective, the
throughputs for a group or team are group
dynamics.
_What goes on within groups.
Work group behaviours.
Required behaviours those that are formally
defined and expected by the organization.
Emergent behaviours those that group members
display in addition to what the organization asks of
them.
_What goes on within groups.
Member relationships.
Activities the things people do or the actions
they take.
Interactions interpersonal communications and
contacts.
Sentiments the feelings, attitudes, beliefs, or
values held by group members.
_What goes on between groups.
Intergroup dynamics.
The dynamics that take place between two or more
groups.
Ways to achieve positive intergroup dynamics.
Refocusing members on a common enemy or goal.
Negotiating directly.
Training members to work more cooperatively.
Refocusing rewards on contributions to the total
organization and how much groups help each
other.
Study Question 3: What are the foundations of
group performance?
Study Question 4: How do groups
make decisions?
_ How groups make decisions.
Decision by lack of response.
One idea after another is suggested without any discussiontaking
place; when the group finally accepts the idea, all
others have been bypassed and discarded by simple lack of
response rather than by critical evaluation.
Decision by authority rule.
The chairperson, manager, or leader makes a decision for the
group.
Decision by minority rule.
Two or three people are able to dominate or railroad the

group into making a decision to which they agree.
make decisions?
_ How groups make decisions (cont.).
Decision by majority rule.
Formal voting may take place, or members may be polled to
find the majority viewpoint.
Decision by consensus.
Discussion leads to one alternative being favored by most
members and the other members agree to support it.
Decision by unanimity.
All group members agree totally on the course of action to be
taken.
make decisions?
_Potential advantages of group decision
making.
More knowledge and expertise is applied to
solve the problem.
A greater number of alternatives are
examined.
The final decision is better understood and
accepted by all group members.
More commitment among all group members
to make the final decision work.
make decisions?
_Potential disadvantages of group decision
making.
Individuals may feel compelled to conform to
the apparent wishes of the group.
The groups decision may be dominated by
one individual or a small coalition.
Group decisions usually take longer to make.
make decisions?
_Ways to avoid groupthink.
Assign the role of critical evaluator to each
group member.
Have the leader avoid seeming partial to one
course of action.
Create subgroups that each work on the same
problem.
Have group members discuss issues with
outsiders and report back.
make decisions?
_Ways to avoid groupthink (cont.).
Invite outside experts to observe and react to
group processes.
Assign someone to be a devils advocate at
each meeting.
Write alternative scenarios for the intentions
of competing groups.
Hold second-chance meetings after
consensus is apparently achieved.
make decisions?
_How to improve group decisions.
Brainstorming.
Group members actively generate as many ideas
and alternatives as possible, and they do so
relatively quickly and without inhibitions.
Nominal group technique.
Puts people in small groups of six to seven
members and asks everyone to respond
individually and in writing to a nominal
question.

make decisions?
_How to improve group decisions (cont.).
Delphi technique.
Involves generating decision-making alternatives
through a series of survey questionnaires.
Computer-mediated decision making.
Group decision making takes place across great
distances with the aid of group decision support
systems.
_ What is a the nature of teams and
teamwork?
_What is team building?
_How does team building improve
performance?
_How do teams contribute to the highperformance
workplace?
of team and teamwork?
_A team is a small group of people with
complementary skills, who work actively
together to achieve a common purpose for
which they hold themselves collectively
accountable.
_Teams are one of the major forces behind
revolutionary changes in contemporary
organizations.
_Types of teams.
Teams that recommend things.
Established to study specific problems and
recommend solutions to them.
Teams that run things.
Have formal responsibility for leading other
groups.
Teams that make or do things.
Functional groups that perform ongoing tasks.
_Teamwork occurs when group members
actively work together in such a way that
all their respective skills are well utilized
to achieve a common purpose.
_Characteristics of high performance teams.
They have strong core values.
They turn a general sense of purpose into
specific performance objectives.
They have the right mix of skills.
They possess creativity.
_ Characteristics of teams with homogeneous
membership.
Members are similar with respect to such variables as
age, gender, race, experience, ethnicity, and culture.
Members can quickly build social relations and
engage in the interactions needed for teamwork.
Homogeneity may limit the team in terms of ideas,
viewpoints, and creativity.
_ Characteristics of teams with heterogeneous
membership.
Members are diverse in demography, experiences, life

styles, and cultures, among other variables.
Diversity can help improve team problem solving and
increase creativity.
Diversity among team members may create
performance difficulties early in the teams life or
stage of development.
_ Characteristics of teams with heterogeneous
membership (cont.).
Enhanced performance potential is possible once
short-run struggles are resolved.
Diversity can provide great advantages for highperformance
organizations.
Study Question 2: What is team
building?
_ Work groups and teams must master challenges
as they pass through the various stages of group
development.
_ Team building is a sequence of planned activities
designed to gather and analyze data on the
functioning of a group and to initiate changes
designed to improve teamwork and increase
group effectiveness.
building?
building?
_Approaches to team building.
Formal retreat approach.
Team building occurs during an offsite retreat.
Continuous improvement approach.
The manager, team leader, or members take
responsibility for ongoing team building.
Outdoor experience approach.
Members engage in physically challenging
situations that require teamwork.
Study Question 3: How does team
building improve performance?
_New members are concerned about
issues of:
Participation.
Goals.
Control.
Relationships.
_Behaviour profiles of coping with
individual entry problems.
Tough battler.
Friendly helper.
Objective thinker.
_ Task and maintenance leadership.
Sustained high performance requires meeting both
task needs and maintenance needs.
High-performance teams require distributed
leadership.
Distributive leadership is the sharing among team
members of the responsibilities for task and
maintenance contributions.
_ Groups members should avoid the following

disruptive behaviours:
Being overly aggressive toward other members.
Withdrawing and refusing to cooperate with others.
Horsing around when there is work to be done.
Using the group as a forum for self-confession.
Talking too much about irrelevant matters.
Trying to compete for attention and recognition.
_Roles and role dynamics.
A role is a set of expectations associated with
a job or position on a team.
Role ambiguity occurs when a person is
uncertain about his/her role.
Role overload occurs when too much is
expected and the person feels overwhelmed
with work.
Role underload occurs when too little is
expected and the person feels underutilized.
_Roles and role dynamics (cont.).
Role conflict occurs when a person is
unable to meet conflicting expectations.
Forms of role conflict.
Intrasender role conflict.
Intersender role conflict.
Person-role conflict.
Interrole conflict.
_Norms represent beliefs about how group
or team members are expected to behave.
_Norms are rules or standards of conduct.
_Managers and leaders should help their
groups adopt positive norms that support
organizational goals.
_Key norms that can have positive or
negative implications.
Performance norms.
Ethics norms.
Organizational and personal pride norms.
High-achievement norms.
Support and helpfulness norms.
Improvement and change norms.
_ Cohesiveness is the degree to which members are
attached to and motivated to remain a part of the
team
_ High team cohesiveness occurs when:
Members are similar in age, attitudes, needs, and backgrounds.
Group size is small.
Members respect each others competencies.
Members agree on common goals.
Members work on interdependent tasks.
Groups are physically isolated from others.
Groups experience performance success or crisis.

Study Question 4: How do teams contribute to
the high-performance workplace?
_Problem-solving teams.
Employee involvements teams include a wide
variety of teams whose members meet
regularly to collectively examine important
workplace issues.
Quality circle.
A special type of employee involvement team.
Team meets periodically to address problems
relating to quality, productivity, or cost.
_Cross-functional teams.
Consist of members representing different
functional departments or work units.
Used to overcome functional silos problem.
Used to solve problems with a positive
combination of functional expertise and
integrative systems thinking.
_Advantages of virtual teams.
Cost-effectiveness and speed where members
are unable to meet easily face-to-face.
Computer power fulfills typical team needs for
information processing and decision making.
Communication is possible among people
separated by great distances.
Interaction and decision making are focused
on facts and objective information rather than
emotional considerations.
.
_Disadvantages of virtual teams.
The lack of personal contact between team
members.
Group decisions are made in a limited social
context.
_Advantages of self-managing teams.
Productivity and quality improvements.
Production flexibility and faster response to
technological change.
Reduced absenteeism and turnover.
Improved work attitudes and quality of work
life.
_ Disadvantages of self-managing teams.
Structural changes in job classifications and
management levels eliminate the need for first-line
supervisors.
Managers must learn to deal with teams rather than
individuals.
Supervisors who are displaced by self-managing
teams may feel threatened.
_What is leadership and how does it differ
from management?
_What are situational contingency
approaches to leadership ?
_What are attributional approaches to

leadership?
_What are some emerging leadership
perspectives and why are they especially
important in todays organizations?
Study Question 1: What is leadership and
how does it differ from management?
_ Management promotes stability or enables the
organization to run smoothly.
_ Leadership promotes adaptive or useful changes.
_ Persons in managerial positions may be involved
with both management and leadership.
_ Both management and leadership are needed for
organizational success.
_Leadership is a special case of
interpersonal influence that gets an
individual or group to do what the leader or
manager wants done.
_Forms of leadership.
Formal leadership.
Informal leadership.
_Approaches to leadership.
Trait and behavioural perspectives.
Situational contingency perspectives.
Attributional perspectives.
New leadership perspectives.
_Trait theories.
Assume that traits play a key role in:
Differentiating between leaders and nonleaders.
Predicting leader or organizational outcomes.
Great person-trait approach.
Earliest approach in studying leadership.
Tried to determine the traits that characterized
great leaders.
Pick up Figure 11.1 from the textbook.
_Behavioural theories.
Assume that leader behaviours are crucial for
explaining performance and other
organizational outcomes.
Focus on leader behaviours rather than traits.
Major behavioural theories.
Michigan leadership studies.
Ohio State leadership studies.
Leadership Grid.
Leader-Member Exchange (LMX) theory.
_Michigan leadership studies.
Employee-centered supervisors.
Place strong emphasis on subordinates welfare.
Production-centered supervisors.
Place strong emphasis on getting the work done.
Employee-centered supervisors have more
productive work groups than productioncentered
supervisors.
_Ohio State leadership studies.
Consideration.
Concerned with peoples feelings and making
things pleasant for the followers.
Initiating structure.
Concerned with defining task requirements and
other aspects of the work agenda.
Effective leaders should be high on both
consideration and initiating structure.
_Leadership Grid.
Developed by Robert Blake and Jane Mouton.
Built on dual emphasis of consideration and
initiating structure.
A 9 x 9 Grid (matrix) reflecting levels of
concern for people and concern for task.
1 reflects minimum concern.
9 reflects maximum concern.
_Leadership Grid (cont.).
Five key Grid combinations.
1/1 low concern for production, low concern for
people.
1/9 low concern for production, high concern
for people.
9/1 high concern for production, low concern
for people.
5/5 moderate concern for production, moderate
concern for people.
9/9 high concern for production, high concern
for people.
_Leader-Member Exchange (LMX) theory.
Focuses on the quality of the working
relationship between leaders and followers.
LMX dimensions determine followers
membership in leaders in group or out
group.
Different relationships with in group and
out group.
Study Question 2: What are situational
contingency approaches to leadership?
_ Leader traits and behaviours can act in conjunction
with situational contingencies.
_ The effects of leader traits are enhanced by their
relevance to situational contingencies.
_ Major situational contingency theories.
Fiedlers leadership contingency theory.
Fiedlers cognitive resource theory.
Houses path-goal theory of leadership.
Hersey and Blanchards situational leadership model.
Study Question 2: What are the situational
_Key variables in Fiedlers contingency
model.
Situational control.
The extent to which a leader can determine what
his or her group is going to do as well as the
outcomes of the groups actions and decisions.
Is a function of:
Leader-member relations.
Task structure.
Position power.
_Key variables in Fiedlers contingency
model (cont.).
Least preferred co-worker (LPC) score reflects

a persons leadership style.
High-LPC leaders have a relationship-motivated
style.
Low-LPC leaders have a task-motivated style.
_Fiedlers cognitive resource theory.
A leaders use of directive or nondirective
behaviour depends on:
The leaders or subordinate group members ability
or competency.
Stress.
Experience.
Group support of the leader.
Leader directiveness is most helpful for
performance when the leader is competent,
relaxed, and supported.
_Houses path-goal theory of leadership.
Rooted in the expectancy model of motivation.
Emphasizes how a leader influences
subordinates perceptions of both work goals
and personal goals and the links, or paths,
found between these two sets of goals.
_Path-goal theory predictions.
Directive leadership will have a positive
impact on subordinates when tasks are
ambiguous and the opposite effect when tasks
are clear.
Supportive leadership will increase the
satisfaction of subordinates who work on tasks
that are highly repetitive, unpleasant, stressful,
or frustrating.
_Path-goal theory predictions (cont.).
Achievement-oriented leadership will
encourage subordinates to strive for higher
performance standards and to have more
confidence in their ability to meet challenging
goals when subordinates are working at
ambiguous, nonrepetitive tasks.
Participative leadership will promote
satisfaction on nonrepetitive tasks that allow
for the ego involvement of subordinates.
Study Question 3: What are attributional
approaches to leadership?
_ Attribution theory provides a competing
perspective to the traditional leadership theory
assumption that leadership and its substantive
effects can be identified and measured
objectively.
_ Attribution theory suggests that leadership is
influenced by attempts to understand causes of

and assess responsibilities for behaviour.
_Leadership prototypes.
Peoples mental image of what a model leader
should look like.
Mix of specific and general characteristics.
Prototypes may differ by country and national
culture.
The closer that a leaders behaviour matches the
prototype held by the followers, the more
favorable the leaders relations and key
outcomes.
_Exaggeration of the leadership difference.
Top leaders of organizations have little impact
on profits and effectiveness compared to
environmental and industry forces.
Much of the impact of top leaders is symbolic.
The romance of leadership refers to people
attributing romantic, almost magical, qualities
to leadership.
Study Question 4: What are some emerging
leadership perspectives and why are they
especially important in todays organizations?
_Charismatic approaches to leadership.
Charismatic leaders, by force of their personal
abilities, can have a profound and
extraordinary effect on followers.
Characteristics of charismatic leaders include:
High need for power.
High feelings of self-efficacy.
Conviction in the moral rightness of their beliefs.
_Dark side versus bright side of charismatic
leadership.
Dark side.
Emphasizes personalized power.
Leaders focus on themselves.
Bright side.
Emphasizes socialized power.
Leaders empower followers.
_ Conger and Kanungos three-stage charismatic
leadership model.
Stage 1: the leader critically evaluates the status quo.
Stage 2: the leader formulates and articulates future
goals and a idealized future vision.
Stage 3: the leader shows how the goals and vision
can be achieved.
_Transactional leadership.
Involves leader-follower exchanges necessary
for achieving routine performance that is
agreed upon by leaders and followers.
Leader-follower exchanges involve:
Use of contingent rewards.
Active management by exception.

Passive management by exception.
Abdicating responsibilities and avoiding decisions.
_Transformational leadership.
Leaders broaden and elevate followers
interests, generate awareness and acceptance
of the groups mission, and stir followers to
look beyond self-interests.
Dimensions of transformational leadership.
Charisma.
Inspiration.
Intellectual stimulation.
Individualized consideration.
_ Leadership in self-managing work teams.
Leaders provide resources or act as liaisons with other
units but without the trappings of authority associated
with traditional first-line supervisors.
Conditions for creating and maintaining team
performance.
Efficient, goal-directed effort.
Adequate resources.
Competent, motivated performance.
A productive, supportive climate.
Commitment to continuous improvement and adaptation.
_Can people be trained in the new
leadership?
People can be trained to adopt new leadership
approaches.
Leaders can devise improvement programs to
address their weaknesses and work with
trainers to develop their leadership skills.
Leaders can be trained in charismatic skills.
_Is new leadership always good?
Not always good.
Dark-side charismatics can have negative
effects on followers.
Not always needed.
Needs to be used in conjunction with
traditional leadership.
Applies at all levels of organizational
leadership.
_What are power and influence in an
organization?
_How are power, obedience, and formal
authority intertwined in an organization?
_What is empowerment?
_What is organizational politics?
Study Question 1: What are power
and influence in an organization?
_Power.
The ability to get someone to do something
you want done.
The ability to make things happen in the way
you want.
_Influence.
Expressed by others behavioural response to
your exercise of power.

_ Position power derives from a persons position
in the organizational hierarchy.
_ Types of position power.
Reward power.
Coercive power.
Legitimate power.
Process power.
Information power.
Representative power.
_ Reward power.
The extent to which a manager can use extrinsic and
intrinsic rewards to control other people.
_ Coercive power.
The extent to which a manager can deny desired
rewards and administer punishment to control other
people.
_ Legitimate power.
The extent to which a manager can use subordinates
internalized values or beliefs that the boss has the
right of command to control other people.
_ Process power.
The control over methods of production and analysis
that a manager has due to being in a position to
influence how inputs are transformed into outputs.
_ Information power.
The access to and/or control of information. .
_ Representative power.
The formal right conferred by the firm to speak for a
potentially important group composed of individuals
across departments or outside the firm.
_Personal power derives from individual
sources.
_Types of personal power.
Expert power.
Rational persuasion.
Referent power.
_ Expert power.
The ability to control another persons behaviour
through the possession of knowledge, experience, or
judgment that the other person does not have but
needs.
_ Rational persuasion.
The ability to control another persons behaviour by
convincing the other person of the desirability of a
goal and a reasonable way of achieving it.
_ Referent power.
The ability to control anothers behaviour because the
person wants to identify with the power source.
_Ways to build position power.

Demonstrating work unit relevance to
organizational goals and needs.
Increasing task relevance of ones own
activities and work units activities.
Attempting to define tasks so they are difficult
to evaluate.
_Ways to build personal power.
Building expertise.
Advanced training and education, participation in
professional associations, and project involvement.
Learning political savvy.
Learning ways to negotiate, persuade, and
understand goals and means that others accept.
Enhancing likeability.
Pleasant personality characteristics, agreeable
behaviour patterns, and attractive personal
appearance.
_Ways that managers increase the visibility
of their job performance.
Expanding contacts with senior people.
Making oral presentations of written work.
Participating in problem-solving task forces.
Sending out notices of accomplishment.
Seeking opportunities to increase name
recognition.
_Controlling decision premises.
Executives attempt to control, or at least
influence, decision premises.
A decision premise is a basis for defining the
problem and for selecting among alternatives.
Executives who want to increase their power
will make their goals and needs clear and
bargain effectively.
_Common techniques for exercising
relational influence.
Reason.
Friendliness.
Coalition.
Bargaining.
Assertiveness.
Higher authority.
Sanctions.
Study Question 2: How are power, obedience,
and formal authority intertwined in an
organization?
_Important practical issues in the exercise
of power and formal authority.
Why should subordinates respond to a
managers authority (or right to
command)?
Given that subordinates are willing to obey,
what determines the limits of obedience?
organization?
_ The Milgram experiments.
Designed to determine the extent to which people
obey the commands of an authority figure, even if
they believe they are endangering the life of another
person.
The results indicated that the majority of the
experimental subjects would obey the commands of
the authority figure.
Basic conclusion was that people tend to comply with
and be obedient to authority.
organization?
_ For a directive from a superior to be
accepted as authoritative, the subordinate:
Can and must understand it.
Must feel mentally and physically capable of
carrying it out.
Must believe that it is consistent with the
organizations purpose.
Must believe that it is consistent with his or
her personal interests.
organization?
_Zone of indifference.
In exchange for certain inducements,
subordinates recognize the authority of the
organization and its managers to direct their
behaviour in certain ways.
A zone of indifference is the range of
authoritative requests to which a subordinate is
willing to respond without subjecting the
directives to critical evaluation or judgment.
organization?
Study Question 3: What is empowerment?
_Empowerment.
The process by which managers help others to
acquire and use the power needed to make
decisions affecting themselves and their work.
Provides the foundation for self-managing
work teams and other employee involvement
groups.
Empowerment emphasizes the ability to make
things happen.
_Changing position power.
Moving power down the hierarchy alters the
existing pattern of position power.
Changing this pattern raises the following
important questions:
Can empowered individuals give rewards and
sanctions based on task accomplishment?
Has their new right to act been legitimized with
formal authority?
_Expanding the zone of indifference.
Management needs to recognize the current
zone of indifference and systematically move
to expand it.
Management should show how empowerment
will benefit people and provide the needed
inducement.
.
_Power as an expanding pie.
Employees need to be trained to expand their
power and their new influence potential.
The key is to change from a view stressing
power over others to one emphasizing the use
of power to get things done.

_Power as an expanding pie.
Clearer definition of roles and responsibilities
helps managers empower others.
All mangers need to emphasize different ways
of exercising influence.
Special support may be needed for individuals
to become comfortable.
Study Question 4: What is organizational
politics?
_Machiavellian tradition of organizational
politics.
Emphasizes self-interest and the use of
nonsanctioned means.
Organizational politics is defined as the
management of influence to obtain ends not
sanctioned by the organization or to obtain
sanctioned ends through nonsanctioned
influence means.
politics?
_Alternate tradition of organizational
politics.
Politics is a necessary function resulting from
differences in the self-interests of individuals.
Politics is the art of creative compromise
among competing interests.
Politics is the use of power to develop socially
acceptable ends and means that balance
individual and collective interests.
politics?
politics?
_Subunit power.
Line units are typically more powerful than
are staff groups.
Units toward the top of the organizational
hierarchy are often more powerful than those
toward the bottom.
Power differentials are not as pronounced
among units at or near the same level in an
organization.
politics?
_Political actions for influencing lateral,
intergroup relationships.
Workflow linkages.
Service linkages.
Advisory linkages.
Auditing linkages.
Approval linkages.
politics?
_ Important aspects of corporate political strategy.
Absence of a political strategy can be damaging.
Corporate political strategy should be targeted toward
turning the government from a regulator against
industry to a protector of it.
Need to make decisions about when and how to get
involved in the public policy processes.
politics?
_ Avoidance is quite common where the employee
must risk being wrong or where actions may
yield a sanction.
Common techniques for avoiding action and risk

_ taking.
Working to the rules.
Playing dumb.
Depersonalization.
Stalling.
politics?
_ Common techniques for redirecting
accountability and responsibility.
Passing the buck.
Buffing (or rigorous documentation).
Preparing a blind memo.
Rewriting history.
Redirecting.
Scapegoating.
Blaming the problem on uncontrollable events.
Escalating commitment.
politics?
_ Defending turf.
Defending turf is a time-honored tradition in most
large organizations.
Defending turf results when:
Managers seek to increase their power by expanding the jobs
their groups perform.
Competing interests exist among various departments and
groups.
politics?
_Agency theory.
An important power problem arises from the
separation of owners and managers.
Managers are agents of the owners.
Public corporations can function effectively
even though its managers are self-interested.
politics?
_Key arguments of agency theory.
By protecting stockholder interests, all the
interests of society are served.
Stockholders have a clear interest in greater
returns.
Managers are self-interested and must be
controlled.
politics?
_Types of controls instituted for agents.
Pay plan incentives that align the interests of
management and stockholders.
The establishment of a strong, independent
board of directors.
Stockholders with a large stake in the firm
taking an active role on the board.
politics?
_ Resource dependencies.
The firms need for resources that are controlled by
others.
_ The resource dependence of an organization
increases as:
Needed resources become more scarce.
Outsiders have more control over needed resources.
There are fewer substitutes for a particular type of
resource controlled by a limited number of outsiders.
politics?
_ Organizational governance.
The pattern of authority, influence, and acceptable
managerial behaviour established at the top of the

organization.
Organizational governance establishes the following:
What is important.
How issues will be defined.
Who should and should not be involved in key
choices
Boundaries for acceptable implementation.
politics?
_Negative views of organizational
governance.
Unbalanced organizational governance by
some United States corporations may limit
their ability to manage global operations
effectively.
Organizational governance is too closely tied
to the short-term interests of stockholders and
the pay of the CEO.
politics?
_ Positive views of organizational governance.
The governance of U.S. firms extends well beyond the
limited interests of the owners.
Organization governance should be based on three
ethical criteria.
When the three ethical criteria cannot be fulfilled, the
criterion of overwhelming factors should be invoked.
Choosing to be ethical often involves considerable
personal sacrifice.
_ What is the nature of communication in
organizations?
_ What are the essentials of interpersonal
communication?
_ What are the barriers to effective
communication?
_ What are current issues in organizational
communication?
of communication in organizations?
_Feedback and communication.
Feedback is the process through which the
receiver communicates with the sender by
returning another message.
Giving feedback often is associated with one
or more persons communicating an evaluation
of what another person has said or done.
360-degree feedback.
_ Guidelines for effective constructive feedback.
Give feedback directly and in a spirit of mutual trust.
Be specific, not general; use clear examples.
Give feedback when the receiver is most ready to
accept it.
Be accurate; check validity with others.
Focus on things that the receiver can control.
Limit how much feedback the receiver gets at one
time.
_Communication channels.
Formal channels.
Follow the chain of command established by an
organizations hierarchy of authority.

Informal channels.
Do not follow an organizations hierarchy of
authority.
The grapevine is an informal channel through
which rumors and unofficial information pass.
_ Channel richness.
The capacity of a communication channel to convey
information effectively.
Richest channels face-to-face communication.
Moderately rich channels telephone, electronic chat
rooms, E-mail, written memos, and letters.
Leanest channels posted notices and bulletins.
_Organizational communication is the
specific process through which information
moves and is exchanged throughout an
organization.
_Information flows:
Through formal and informal structures.
Downward, upward, and laterally.
Study Question 2: What are the essentials
of interpersonal communication?
_Effective and efficient communication.
Effective communication.
The accuracy of communication.
Efficient communication.
The cost of communication.
Effectiveness does not guarantee efficiency or
vice versa.
_ Nonverbal communication.
Occurs through facial expressions, body
position, eye contact, and other physical
gestures.
Gives clues to what a person is really thinking.
Two important aspects of nonverbal
communication.
Kinesics the study of gestures and body
postures.
Proxemics the study of how space is utilized.
_Active listening.
Ability to listen well is a distinct asset.
Everyone needs to develop good skills in
active listening.
Active listening is the ability to help the
source of a message say what he or she really
means.
_Guidelines for active listening.
Listen for content.
Listen for feelings.
Respond to feelings.
Note all cues.
Reflect back.
_Cross-cultural communication.
Ethnocentrism.
The tendency to believe that ones culture and its

values are superior to those of others.
Cross-cultural communication challenges.
Language differences.
Use of gestures.
One of the best ways to understand cultural
differences is to learn some of the language.
barriers to effective communication?
_Physical distractions.
Any aspect of the physical setting in which
communication takes place.
Can interfere with communication
effectiveness.
_Semantic problems.
Involves a poor choice or use of words.
Use the KISS principle of communication.
Keep it short and simple.
_Mixed messages.
Occur when a persons words communicate
one thing while actions or body language
communicates another.
Nonverbals add important insights in face-toface
meetings.
_Absence of feedback.
One-way communication flows from sender to
receiver only, with no direct and immediate
feedback.
Two-way communication goes from sender to
receiver and back again.
Two-way communication is more effective
than one-way communication.
_ Status effects.
Status differences create potential communication
barriers between persons of higher and lower ranks .
Mum effect.
Occurs when people are reluctant to transmit bad
news.
Management by wandering around (MBWA).
Getting out of the office to directly communicate
with others as they do their jobs.
Study Question 4: What are current issues
in organizational communication?
_ Advances in information technologies enable
organizations to:
Distribute information much faster.
Make more information available.
Allow broader and more immediate access to
information.
Encourage participation in the sharing and use of
information.
Integrate systems and functions, and use information
to link with the environment.
_Potential disadvantages of electronic
communications.
Technologies are impersonal.
Nonverbal communication is removed from
situation.
Can unduly influence the emotional aspects of
communication.
Information overload.
_Communication and social context.
Mean and women are socialized into different
communication styles.
Women are socialized to be more sensitive to
interpersonal relationships in communication.
Men are socialized to be competitive, aggressive,
and individualistic, which may cause
communication problems.
_What is the decision-making process in
organizations?
_What are the useful decision-making
models?
_How do intuition, judgment, and creativity
affect decision making?
Chapter 14 Study Questions (cont.)
_How do you manage the decision-making
process?
_What are some of the current issues in
decision making?
_How do you infuse ethics into the decisionmaking
process?
Study Question 1: What is the decisionmaking
process in organizations?
_ Decision making is the process of choosing a
course of action for dealing with a problem or
opportunity.
_ Steps in systematic decision making.
Recognize and define the problem or opportunity.
Identify and analyze alternative courses of action, and
estimate their effects on the problem or opportunity.
Choose a preferred course of action.
Implement the preferred course of action.
Evaluate the results and follow up as necessary.
_ Certain decision environments.
Exist when information is sufficient to predict the
results of each alternative in advance of
implementation.
_ Risk decision environments.
Exist when decision makers lack complete certainty
regarding the outcomes of various courses of action,
but they are aware of the probabilities associated with
their occurrence.
_ Uncertain decision environments.
Exist when managers have so little information on
hand that they cannot even assign probabilities to
various alternatives and their possible outcomes.
Described as a rapidly changing setting in terms of:
External conditions.
The information technology requirements needed for
analyzing and making decisions.
The people who influence problem and choice definitions.
_Uncertain decision environments (cont.).
Can be described in terms of types of risks
encountered by the organization.
Strategic risks are threats to overall business
success.
Operational risks are threats inherent in the
technologies used to reach business success.
Reputation risks are threats to a brand or to the
firms reputation
_Types of decisions.
Programmed decisions.
Involve routine problems that arise regularly and
can be addressed through standard responses.
Nonprogrammed decisions.
Involve nonroutine problems that require solutions
specifically tailored to the situation at hand.
Study Question 2:What are the useful
decision-making models?
_Classical decision theory assumes the
manager faces a clearly defined problem,
knows all possible action alternatives and
their consequences, and then chooses the
optimum solution.
_Widespread application of classical
decision theory is restricted by bounded
rationality.
_Classical decision theory does not appear
to fit well in the modern business world,
though it can be used toward the bottom of
many firms.
_Behavioural decision theory accepts the
notion of bounded rationality. It assumes
the manager acts only in terms of what is
perceived about a given situation, and then
chooses a satisficing solution.
_The garbage can model.
A model of decision making that views
problems, solutions, participants, and choice
situations as mixed together in the garbage
can of the organization.
The garbage can model highlights two
important organizational facts of life.
Different individuals may do choice making and
implementation.
Many problems go unsolved.
_Decision making realities.
Decision making information may not be
available.
Bounded rationality and cognitive limitations
affect the way people define problems,
identify alternatives, and choose preferred
solutions.
_Decision making realities (cont.).
Most decision making in organizations goes
beyond step-by-step rational choice.
Decisions must be made under risk and
uncertainty.
Decisions should be ethical.
Study Question 3: How do intuition, judgment,
and creativity affect decision making?
_Intuition.
The ability to know or recognize quickly and
readily the possibilities of a given situation.
A key element of decision making under risk
and uncertainty.
_Judgmental heuristics.
Simplifying strategies or rules of thumb
used to make decisions.
Make it easier to to deal with uncertainty and
limited information.
_Types of heuristics.
Availability heuristic.
Bases a decision on similarity to past occurrences
that are easily remembered.
Representativeness heuristic.
Bases a decision on similarities between an event
and stereotypes of similar occurrences.
Anchoring and adjustment heuristic.
Bases a decision on incremental adjustments to an
initial value determined by historical precedent or
some reference point.
_General judgmental biases in decision
making.
Confirmation trap.
The tendency to seek confirmation for what is
already thought to be true and to not search for
disconfirming information.
Hindsight trap.
The tendency to overestimate the degree to which
an event that has already taken place could have
been predicted.
_Stages in the creative thinking process.
Preparation.
Concentration.
Incubation.
Illumination
Verification.
_ Ways of fostering creativity.
Diversifying teams to include members with different
backgrounds, training, and perspectives.
Encouraging analogical reasoning.
Stressing periods of silent reflection.
Recording all ideas so that the same ones are not
rediscovered.
Establishing high expectations for creativity.
Developing a physical space that encourages fun,
divergent ideas.
_Creativity is higher when:
Linguistic ability, willingness to engage in
divergent thinking, and intelligence are
present.
Individuals are motivated by and derive
satisfaction from task accomplishment.
There are opportunities for creativity, as many
constraints as possible are eliminated, and
rewards are provided for creative efforts.

_Creativity is higher when (cont.):
The decision maker emphasizes engagement in
the creative process and counsels individuals
to share their ideas with others.
The decision maker encourages subordinates
to recognize ambiguity, contact others with
different views, and be prepared to make
considerable changes.
Study Question 4: How do you
manage the decision-making process?
_In choosing problems to address, ask and
answer the following questions:
Is the problem easy to deal with?
Might the problem resolve itself?
Is this my decision to make?
Is this a solvable problem within the context of
the organization?
_ Reasons for decision making failure.
Managers too often copy others choices and try to sell
them to subordinates.
Subordinates may believe the manager is imposing his
or her will rather than working for everyones
interests.
Managers may focus on the problems they see rather
than the outcomes they want.
Managers use participation too infrequently.
_ Key problem attributes in the Vroom, Yetton,
and Jago decision making framework.
The required quality of the decision.
The commitment needed from subordinates.
The amount of information the leader has.
Commitment probability.
Goal congruence.
Subordinate conflict.
Subordinate information.
_ Authority decisions in the Vroom, Yetton, and
Jago decision making framework.
Manager or team leader uses information that he or
she possesses and decides what to do without
involving others.
Variant 1 manager solves the problem or makes the
decision alone.
Variant 2 manager obtains the necessary
information from others and then decides.
_ Consultative decisions in the Vroom, Yetton, and
Manager or team leader solicits input from other
people and then, based on this information and its
interpretation, makes a final choice.
Variant 1 manager seeks input from others
individually and then makes a decision.
Variant 2 manager seeks input from others
collectively and then makes a decision.
_Group decisions in the Vroom, Yetton, and

Manager or team leader consults with others
and allows them to help make the final choice.
_ Knowing when to quit.
The natural desire to continue on a selected course of
action reinforces escalating commitment.
Escalating commitment is the tendency to continue
and renew effort on a previously chosen course of
action, even though it is not working.
Tendency to escalate commitments often outweighs
the willingness to disengage from them.
Good decision makers are willing to reverse previous
decisions.
Study Question 5: What are some of the
current issues in decision making?
_Workplace trends affecting organizational
decision makers.
Business units are becoming smaller in size.
New, more flexible, and adaptable
organizational forms.
Multifunctional understanding is increasingly
important.
Workers with both technical knowledge and
team skills are increasingly desirable.
The nature of work is in a state of flux.
_Information technology and decision
making.
Artificial intelligence is the study of how
computers can be programmed to think like
human beings.
Expert systems support decision making by
following either-or rules to make
deductions.
_Information technology and decision
making (cont.).
Fuzzy logic and neural networks reason
inductively.
Computer support for decision making.
Information technology does not deal with
issues raised by the garbage can model.
_ Cultural factors and decision making.
Culture is the way in which a group of people solves
problems.
North American culture stresses decisiveness, speed,
and the individual selection of alternatives.
Other cultures place less emphasis on individual
choice than on developing implementations that work.
The most important impact of culture on decision
making concerns which issues are elevated to the
status of problems solvable within the firm.
Study Question 6: How do you infuse
ethics into the decision-making process?
_Ways to infuse ethics into decision
making.
Develop a code of ethics and follow it.
Establish procedures for reporting violations.
Involve employees in identifying ethical
issues.
Monitor ethical performance.
Reward ethical behaviour.
Publicize ethical efforts.

Study Question 6: How do you infuse
ethics into the decision-making process?
_ Morality is involved in:
Choosing problems.
Deciding who should be involved in making
decisions.
Estimating the impacts of decision
alternatives.
Selecting an alternative for implementation.
_ An effective decision needs to solve a problem as
well as match moral values and help others.
_What is conflict?
_How can conflict be managed
successfully?
_What is negotiation?
_What are the different strategies involved
in negotiation?
Study Question 1: What is conflict?
_Conflict occurs whenever:
Disagreements exist in a social situation over
issues of substance.
Emotional antagonisms cause frictions
between individuals or groups.
_Types of conflict.
Substantive conflict.
A fundamental disagreement over ends or goals to
be pursued and the means for their
accomplishment.
Emotional conflict.
Interpersonal difficulties that arise over feelings of
anger, mistrust, dislike, fear, resentment, etc.
_Levels of conflict.
Intrapersonal conflicts.
Actual or perceived pressures from incompatible
goals or expectations.
Approach-approach conflict.
Avoidance-avoidance conflict.
Approach-avoidance conflict.
_Levels of conflict (cont.).
Interpersonal conflict.
Occurs between two or more individuals who are
in opposition to one another.
Intergroup conflict.
Occurs among members of different teams or
groups.
_Levels of conflict (cont.).
Interorganizational conflict.
Commonly refers to the competition and rivalry
that characterize firms operating in the same
markets.
Encompasses disagreements that exist between any
two or more organizations.
_Potential benefits of functional conflict.
Surfaces important problems so they can be
addressed.
Causes careful consideration of decisions.
Causes reconsideration of decisions.
Increases information available for decision
making.
Provides opportunities for creativity.
_Potential disadvantages of dysfunctional
conflict.
Diverts energies.
Harms group cohesion.
Promotes interpersonal hostilities.
Creates overall negative environment.
Can decrease work productivity and job
satisfaction.
Can contribute to absenteeism and job
turnover.
_Culture and conflict.
Culture and cultural differences must be
considered for their conflict potential.
Individuals who are not able to recognize and
respect the impact of culture may contribute to
emergence of dysfunctional situations
Cross-cultural sensitivity helps defuse
dysfunctional conflict and capture advantages
that constructive conflict may offer.
Study Question 2: How can conflict be
managed successfully?
_Causes of conflict.
Vertical conflict.
Occurs between hierarchical levels.
Horizontal conflict.
Occurs between persons or groups at the same
hierarchical level.
Line-staff conflict.
Involves disagreements over who has authority and
control over specific matters.
_Causes of conflict (cont.).
Role conflicts.
Occur when the communication of task
expectations proves inadequate or upsetting.
Workflow interdependencies.
Occur when people or units are required to
cooperate to meet challenging goals.
Domain ambiguities.
Occur as misunderstandings over such things as
customer jurisdiction or scope of authority .
_Causes of conflict (cont.).
Resource scarcity.
When resources are scarce, working relationships
are likely to suffer.
Power or value asymmetries.
Occur when interdependent people or groups differ
substantially from one another in status and
influence or in values.
_Indirect conflict management approaches.
Reduced interdependence.
Adjusting the level of interdependency among
units or individuals when workflow conflicts exist.
Decoupling, buffering, and linking pin roles.
Appeal to common goals.
Focusing the attention of potentially conflicting
parties on one mutually desirable conclusion.

_Indirect conflict management approaches
(cont.).
Hierarchical referral.
Problems are referred up the hierarchy for more
senior managers to reconcile.
Altering scripts and myths.
Superficial management of conflict by using
behavioural routines that become part of the
organizations culture.
_Lose-lose conflict.
Avoidance.
Everyone simply pretends that the conflict does not
really exist and hopes that it will go away.
Accommodation or smoothing.
Involves playing down differences among the
conflicting parties and highlighting similarities and
areas of agreement.
Compromise.
Each party gives up something of value, but neither
partys desires are fully satisfied
_Win-lose conflict.
Competition.
One party achieves a victory through the use of
force, superior skills, or domination.
Authoritative command.
Use of formal authority to dictate a solution and
specify who gains what and who loses what.
_Win-win conflict.
Collaboration or problem solving.
Recognition by all conflicting parties that
something is wrong and needs attention, and it
stresses gathering and evaluating information in
solving disputes and making choices.
Collaboration and problem solving are preferred to
gain true conflict resolution when time and cost
permit.
_Win-win solutions should:
Achieve each others goals.
Be acceptable to both parties.
Establish a process whereby both parties see a
responsibility to be open and honest about
facts and feelings.
_Potential disadvantages of collaboration.
Collaboration requires time and energy.
Both parties to the conflict need to be assertive
and cooperative.
Collaboration may not be feasible if the
organizations culture does not value
cooperation.
Study Question 3: What is negotiation?
_Negotiation goals and outcomes.
Substance goals.
Outcomes that relate to content issues.
Relationship goals.
Outcomes that relate to how well people involved
in the negotiations and any constituencies they
represent are able to work with one another once
the process is concluded.
_Effective negotiation.
Occurs when substance issues are resolved and
working relationships are maintained or
improved.
Criteria for an effective negotiation.
Quality.
Harmony.
Efficiency.
_ Ethical aspects of negotiation.
To maintain good working relationships, negotiators
should strive for high ethical standards.
Negotiators rationalizations for questionable ethical
behaviour are offset by long-run negative
consequences.
The unethical negotiator may be targeted for revenge.
Unethical negotiating actions may become habitual.
_Organizational settings for negotiation.
Two-party negotiation.
Manager negotiates directly with one other person.
Group negotiation.
Manager is part of a group whose members are
negotiating.
_ Organizational settings for negotiation (cont.).
Intergroup negotiation.
Manager is part of a group that is negotiating with
another group.
Constituency negotiation.
Manager is involved in negotiation with other
persons, with each party representing a broader
constituency.
Study Question 4: What are the different
strategies involved in negotiation?
_ Distributive negotiation.
Focuses on positions staked out or declared by the
conflicting parties.
Parties try to claim certain portions of the existing pie.
_ Integrative negotiation.
Sometimes called principled negotiation.
Focuses on the merits of the issues.
Parties try to enlarge the available pie.
_Distributive negotiation.
The key question is: Who is going to get this
resource?
Hard distributive negotiation.
Each party holds out to get its own way.
Soft distributive negotiation.
One party is willing to make concessions to the
other party to get things over.
_Integrative negotiation.
The key question is: How can the resource
best be utilized?
Is less confrontational than distributive
negotiation, and permits a broader range of
alternative solutions to be considered.
Opportunity for a true win-win solution.

_Attitudinal foundations of integrative
agreements.
Willingness to trust the other party.
Willingness to share information with the
other party.
Willingness to ask concrete questions of the
other party.
_ Behavioural foundations of integrative
agreements.
Ability to separate the people from the problem.
Ability to focus on interests rather than positions.
Ability to avoid making premature judgments.
Ability to keep alternative creation separate from
evaluation.
Ability to judge possible agreements on an objective
set of criteria or standards.
_Information foundations of integrative
agreements.
Each party must know what he or she will do
if an agreement cant be reached.
Each party must determine what is personally
important in the situation.
Each party must achieve an understanding of
what the other party values.
_Common negotiation pitfalls.
Myth of the fixed pie.
Possibility of escalating commitment.
Negotiators often develop overconfidence in
their positions.
Communication problems can cause
difficulties during a negotiation.
Telling problem.
Hearing problem.
_Third-party roles in negotiation.
Alternative dispute resolution.
A neutral third party works with persons
involved in a negotiation to help them
resolve impasses and settle disputes.
Arbitration.
A third party acts as a judge and has the
power to issue a decision that is binding on
all disputing parties.
_Third-party roles in negotiation (cont.).
Mediation.
A neutral third party tries to engage
disputing parties in a negotiated solution
through persuasion and rational argument.
_What is organizational change?
_What change strategies are used in
organizations?
_How is resistance to change best managed?
_How do organizations innovate?
_How does stress affect people in change
environments?
Study Question 1: What is
organizational change?
_Transformational change.
Results in a major overhaul of the organization
or its component systems.
Described as radical change or frame-breaking
change.
Organizations experiencing transformational
change undergo a significant shift in basic
characteristic features.
_Incremental change or frame-bending
change.
Part of the organizations natural evolution in
building on the existing ways of operating to
enhance or extend them in new directions.
Introduction of new products, new
technologies, and new systems and processes.
Continuous improvement through incremental
change is an important asset.
_Change agents.
Individuals and groups who take responsibility
for changing the existing behaviour patterns of
another person or social system.
Success of change efforts depends in part on
change agents.
Being an effective change agent means being
a great change leader.
_Unplanned change.
Occurs spontaneously and without a change
agents direction, and such change may be
disruptive.
Appropriate goal is to act quickly to minimize
the negative consequences and maximize any
possible benefits.
_Planned change.
The result of specific efforts by a change
agent.
Direct response to someones perception of a
performance gap.
A performance gap is the discrepancy between the
desired and actual state of affairs.
Performance gaps represent problems to be
resolved or opportunities to be explored.
_Organizational forces for change.
Organization-environment relationships.
Organizational life cycle.
Political nature of organizations.
change?
_ Reasons for failure of transformational change.
No sense of urgency.
No powerful guiding coalition.
No compelling vision.
Failure to communicate the vision.
Failure to empower others to act.
Failure to celebrate short-term wins.
Failure to build on accomplishments.

Failure to institutionalize results.
_Phases of planned change.
Unfreezing.
Preparing a situation for change by disconfirming
existing attitudes and behaviours.
Changing.
Taking action to modify a situation by altering the
targets of change.
Refreezing.
Maintaining momentum and eventually
institutionalizing the change.
Study Question 2: What change
strategies are used in organizations?
Study Question 3: How is resistance
to change best managed?
_Resistance to change.
Any attitude or behaviour that indicates
unwillingness to make or support a desired
change.
Alternative views of resistance.
Something that must be overcome for change to be
successful.
Feedback that can be used to facilitate achieving
change objectives.
_ Why people resist change.
Fear of the unknown.
Lack of good information.
Fear for loss of security.
No reasons to change.
Fear for loss of power.
Lack of resources.
Bad timing.
Habit.
_ Resistance to the change itself.
People may reject a change because they believe it is
not worth their time, effort, or attention.
To deal with resistance to the change itself, all those
affected should know how it satisfies the following
criteria:
Benefit.
Compatibility.
Complexity.
Triability.
_ Resistance to the change strategy.
Force-coercion strategy.
Likely resistance among individuals who resent management
by command or the use of threatened punishment.
Rational persuasion strategy.
Likely resistance when the data are suspect or the expertise of
advocates is unclear.
Shared-power strategy.
Likely resistance if it appears manipulative and insincere.
_Resistance to the change agent.
Resistance to the change agent is directed at
the person implementing the change and often
involves personality and other differences.

_How to deal with resistance.
Education and communication.
Participation and support.
Facilitation and support.
Negotiation and agreement.
Manipulation and cooptation.
Explicit and implicit coercion.
organizations innovate?
_ Innovation.
The process of creating new ideas and putting them
into practice.
_ Product innovations.
The introduction of new or improved goods or
services to better meet customer needs.
_ Process innovations.
The introduction of new and better work methods and
operations.
_Features of innovative organizations.
Strategies and cultures that are built around a
commitment to innovation.
Structures that support innovation.
Staffing with a clear commitment to
innovation.
Top-management support for innovation.
Study Question 5: How does stress affect
people in change environments?
_Stress.
A state of tension experienced by individuals
facing extraordinary demands, constraints, or
opportunities.
_Source of stress.
Stressors.
The wide variety of things that cause stress for
individuals.
Types of stressors.
Work-related stressors.
Life stressors.
_Work-related stressors.
Task demands.
Role ambiguities.
Role conflicts.
Ethical dilemmas.
Interpersonal problems.
Career developments.
Physical setting.
_Life stressors.
Family events.
Economic difficulties.
Personal affairs.
Individuals needs.
Individuals capabilities.
Individuals personality.

_Stress and performance.
Constructive stress (or eustress).
Moderate levels of stress act in a positive way for
both individuals and organization.
Destructive stress (or distress).
Low and especially high levels of stress act in a
negative way for both individuals and organization.
Job burnout.
A loss of interest in and satisfaction with a job due
to stressful working conditions.
_ Stress and health.
Stress can harm peoples physical and psychological
health.
Health problems associated with stress.
Heart attack.
Stroke.
Hypertension.
Migraine headache.
Ulcers.
Substance abuse.
Overeating.
Depression.
Muscle aches.
Managers and team leaders should be alert to signs of
excessive stress.
_Stress management.
Stress prevention.
Taking action to keep stress from reaching
destructive levels in the first place.
Once stress has reached a destructive point,
special techniques of stress management can
be implemented.
Stress management.
Begins with the recognition of stress symptoms
and continues with actions to maintain a positive
performance edge.
_Stress management (cont.).
Personal wellness.
Pursuit of ones job and career goals with the
support of a personal health promotion program.
Employee assistance programs.
Provide help for employees who are experiencing
personal problems and related stress.
_What is strategy and how is it linked to
different types of organizational goals?
_What are the basic attributes of
organizations?
_How is work organized and coordinated?
_What are bureaucracies and what are the
common structures?
Study Question 1: What is strategy and
how is it linked to different types of
organizational goals?
_Strategy.
The process of positioning the organization in
the competitive environment and
implementing actions to compete successfully.
A pattern in a stream of decisions.
Choices regarding goals and the way the firm
organizes to accomplish them.

_Elements of conventional strategy
decisions.
Choosing the types of contributions the firm
intends to make to society.
Precisely whom the firm will serve.
Exactly what the firm will provide to others.
_ Societal goals.
Reflect an organizations intended contributions to the
broader society.
Enable organizations to gain legitimacy, a social right
to operate, and more discretion for their non-societal
goals and operating practices.
Enable organizations to make legitimate claims over
resources, individuals, markets, and products.
_Societal contributions and mission
statements.
A firms societal contribution is often part of
its mission statement.
A written statement of organizational purpose.
A good mission statement identifies whom the
firm will serve and how it will go about
accomplishing its societal purpose.
_Output goals.
Define the type of business the organization is
pursuing.
Provide some substance to the more general
aspects of mission statements.
_ Systems goals.
Concerned with the conditions within the organization
that are expected to increase the organizations
survival potential.
Typical systems goals include growth, productivity,
stability, harmony, flexibility, prestige, and human
resource maintenance.
Systems goals must often be balanced against one
another.
_Well-defined systems goals can:
Focus managers attention on what needs to be
done.
Provide flexibility in devising ways to meet
important targets.
Be used to balance the demands, constraints,
and opportunities facing the firm.
Form a basis for dividing the work of the firm.
Study Question 2: What are the basic
attributes of organizations?
_ Successful organizations develop a structure
consistent with the pattern of goals established by
senior management.
The formal structure shows the planned
_ configuration of positions, job duties, and the

lines of authority among different parts of the
organization.
_ The formal structure of the firm is also known as
the division of labor.
_ Vertical specialization.
A hierarchical division of labor that distributes formal
authority and establishes where and how critical
decisions are to be made.
Creates a hierarchy of authority.
An arrangement of work positions in order of increasing
authority.
Organization charts are diagrams that depict the
formal structures of organizations.
_ Chain of command.
A listing of who reports to whom up and down the
organization.
_ Unity of command.
Each person has only one boss and each unit one
leader.
_ Span of control.
The number individuals reporting to a supervisor.
_Line units.
Work groups that conduct the major business
of the organization.
_Staff units.
Work groups that assist the line units by
providing specialized expertise and services to
the organization.
_ Internal versus external units.
Internal line units.
Transform raw materials and information into products and
services.
External line units.
Maintain outside linkages.
Internal staff units.
Assist the line units in performing their functions.
External staff units.
Assist the line units with outside linkages and act to buffer
internal operations.
_ Some firms are outsourcing many of their staff
functions.
_ Use of information technology to streamline
operations and reduce staff.
_ Most organizations use a variety of means to
specialize the vertical division of labor.
_ Best pattern of vertical specialization depends on
environment, size, technology, and goals.
_Control.
The set of mechanisms used to keep actions or
outputs within predetermined limits.
Deals with:
Setting standards.
Measuring results against standards.
Instituting corrective action.
_Output controls.
Focus on desired targets and allow managers
to use their own methods to reach defined
targets.
Part of overall method of managing by
exception.
Promote flexibility and creativity.
_Process controls.
Specify the manner in which tasks are
accomplished.
Types of process controls.
Policies, procedures, and rules.
Formalization and standardization.
Total quality management controls.
_Policies, procedures, and rules.
Policies.
Guidelines for action that outline important
objectives and broadly indicate how activities are
to be carried out.
Procedures.
Identify the best method for performing a task,
show which aspects of a task are most important,
or outline how an individual is to be rewarded.
_Policies, procedures, and rules (cont.).
Rules.
Describe in detail how a task or a series of tasks is
to be performed, or indicate what cannot be done.
Policies, procedures, and rules are often used
as substitutes for direct managerial
supervision.
_Formalization.
The written documentation of policies,
procedures, and rules to guide behaviour and
decision making.
_Standardization.
The degree to which the range of allowable
actions in a job or series of jobs is limited so
that uniform actions occur.
_ Demings 14 points for achieving total quality
management.
Create a consistency of purpose in the company to
innovate; put resources into research and education,
and into maintaining equipment and new production
aids.
Learn a new philosophy of quality to improve every
system.
Require statistical evidence of process control and
eliminate financial controls on production.
management (cont.).
Require statistical evidence of control in purchasing
parts.
Use statistical methods to isolate the sources of
trouble.
Institute modern on-the-job training.
Improve supervision to develop inspired leaders.
Drive out fear and instill learning.
Break down barriers between departments.
management (cont.).
Eliminate numerical goals and slogans.
Constantly revamp work methods.
Institute massive training programs for employees in
statistical methods.
Retrain people in new skills.
Create a structure that will push, every day, on the
above 13 points.
_Centralization and decentralization.
Centralization.
Degree to which the authority to make decisions is
restricted to higher levels of management.
Decentralization.
Degree to which the authority to make decisions is
given to lower levels in an organizations
hierarchy.
_Benefits of decentralization.
Higher subordinate satisfaction.
Quicker response to a series of unrelated
problems.
Assists in on-the-job training of subordinates
for higher-level positions
Encourages participation in decision making.
Study Question 3: How is work
organized and coordinated?
_Horizontal specialization.
A division of labor that establishes specific
work units or groups within an organization.
Often referred to as departmentation.
Whenever managers divide tasks and group
similar types of skills and resources together,
they must also be concerned with
coordination.
_Coordination.
The set of mechanisms that an organization
uses to link the actions of its units into a
consistent pattern.
Within a unit, much of the coordination is
handled by its manager.
Smaller organizations rely on management
hierarchy for coordination.
As the organization grows, more efficient and
effective methods of coordination are required.

_ Personal methods of coordination.
Produce synergy by promoting dialogue, discussion,
innovation, creativity, and learning, both within and
across units.
Common personal methods of coordination are direct
contact between and among organizational members
and committee memberships.
Mix of personal coordination methods should be
tailored to subordinates, skills, abilities, and
experiences.
_ Impersonal methods of coordination.
Produce synergy by stressing consistency and
standardization so that individual pieces fit together.
Often are refinements and extensions of process
controls.
Historical use of specialized departments to coordinate
across units.
Contemporary use of matrix departmentation and
management information systems for coordination.
Study Question 4: What are bureaucracies and
what are the common structures?
_Bureaucracy.
An ideal form of organization, the
characteristics of which were defined by the
German sociologist Max Weber.
Relies on a division of labor, hierarchical
control, promotion by merit with career
opportunities for employees, and
administration by rule.
_Mechanistic type of bureaucracy (machine
bureaucracy).
Emphasizes vertical specialization and control.
Stresses rules, policies, and procedures;
specifies techniques for decision making; and
use well-documented control systems.
Often used with a low cost leader strategy.
_ Benefits of the mechanistic type.
Efficiency.
_ Limitations of the mechanistic type.
Employees dislike rigid designs, which makes work
motivation problematic.
Unions may further solidify rigid designs.
Key employees may leave.
Hinders organizations capacity to adjust to subtle
environmental changes or new technologies.
_Organic type of bureaucracy (professional
bureaucracy).
Horizontal specialization.
Procedures are minimal, and those that do
exist are not highly formalized.
Used to pursue strategies that emphasize
product quality, quick response to customers,
or innovation.
_ Benefits of the organic type.
Good for problem solving and serving individual
customer needs.
Centralized direction by senior management is less
intense.
Good at detecting external changes and adjusting to
new technologies.
_ Limitations of the organic type.
Less efficient than mechanistic type.
Restricted capacity to respond to central management
direction.
_Common types of hybrid structures.
Divisional firm.
Composed of quasi-independent divisions so that
different divisions can be more or less organic or
mechanistic.
Conglomerate.
A single corporation that contains a number of
unrelated businesses.
_The conglomerate simultaneously
illustrates three key points that will be the
focus of Chapter 18.
All structures are combinations of the basic
elements.
There is no one best structure.
The firm does not stand alone but is part of a
larger network of firms that compete against
other networks.
_ What is organizational design and how is it
linked to strategy?
_ What is information technology and how is it
used?
_ Can the design of the firm co-evolve with the
environment?
_ How does a firm learn and continue to learn over
time?
Study question 1: What is organizational
design and how is it linked to strategy?
_Organizational design.
The process of choosing and implementing a
structural configuration.
The choice of an appropriate organizational
design depends on the firms:
Size.
Operations and information technology.
Environment.
Strategy for growth and survival.
_ The structural configuration of organizations
should:
Enable senior executives to emphasize the skills and
abilities that their firms need to compete, and to
remain agile and dynamic in a rapidly changing world.
Allow individuals to experiment, grow, and develop
competencies so that the strategy of the firm can
evolve.
_Co-evolution.
The firm can adjust to external changes even
as it shapes some of the challenges facing it.
Shaping capabilities via the organizations
design is a dynamic aspect of co-evolution.
Even with co-evolution, managers must
maintain a recognizable pattern of choices in

organizational design.
_Organizational size.
As the number of employees increase, the
possible interconnections among them
increase even more.
The design of small firms is directly
influenced by core operations technology.
Larger firms have many core operations
technologies in a variety of specialized units.
_ The simple design for smaller units and firms.
A configuration involving one or two ways of
specializing individuals and units.
Vertical specialization and control emphasize levels of
supervision without elaborate formal mechanisms.
Appropriate for many smaller firms because of
simplicity, flexibility, and responsiveness to a central
manager.
_ Organizational design must be adjusted to fit
technological opportunities and requirements.
Operations technology.
The combination of resources, knowledge, and techniques
that creates a product or service output.
Information technology.
The combination of machines, artifacts, procedures, and
systems used to gather, store, analyze, and disseminate
information for translating it into knowledge.
_Thomsons view of technology.
Technologies classified according to the
degree of specification and degree of
interdependence of work units.
Intensive technology.
Uncertainty as to how to produce desired
outcomes.
_Thomsons view of technology (cont.).
Mediating technology.
Links parties that want to become interdependent.
Long-linked technology.
The way to produce desired outcomes is known
and broken down into a number of sequential steps.
_ Woodwards view of technology.
Small-batch production.
The organization tailor makes a variety of custom
products to fit customer specifications.
Mass production.
The organization produces one or a few products
through an assembly line system.
Continuous-process technology.
The organization produces a few products using
considerable automation.
_Woodwards view of technology (cont.).
The proper matching of structure and
technology is critical to organizational
success.
Successful small-batch and continuous-process

plants have flexible structures with small work
groups at the bottom.
Successful mass production operations are rigidly
structured and have large work groups at the
bottom.
_Adhocracy.
An appropriate structural design when
managers and employees do not know the
appropriate way to service a client or produce
a particular product.
_An adhocracy is characterized by:
Few rules, policies, and procedures.
Substantial decentralization.
Shared decision making among members.
Extreme horizontal specialization.
Few levels of management.
Virtually no formal controls.
_An adhocracy is useful when:
The tasks facing the firm vary considerably
and provide many exceptions.
Problems are difficult to define and solve.
Study Question 2:What is information
technology and how is it used?
_Why IT makes a difference.
IT provides a partial substitute for:
Some operations.
Some process controls.
Some impersonal methods of coordination.
IT provides a strategic capability.
IT provides a capability for transforming
information to knowledge for learning.
_Information technology as a substitute.
Initial implementation of IT often displaced
routine, highly specified, and repetitious jobs.
Did not alter fundamental character or design of
the organization.
A second wave of substitution replaced
process controls and informal coordination
mechanisms with IT.
Brought some marginal changes in organizational
design.
_ Information technology as a strategic capability.
IT has been used to improve the efficiency, speed of
responsiveness, and effectiveness of operations.
IT provides individuals the information they need to
plan, make choices, coordinate with others, and
control their own operations.
This new strategic IT capability resulted from IT
being broadly available to everyone.
_IT and learning.
IT systems empower individuals and expand
their jobs.
IT encourages the development of a virtual
network.
IT transforms how people manage.

_IT and e-business.
Many dot-com firms adopted some variation
of adhocracy.
As the dot-coms grew, the adhocracy design
became problematic.
Limits on the size of an effective adhocracy.
Actual delivery of products and services rested
more on responsiveness to clients and maintaining
efficiency than on continual innovation.
Study Question 3: Can the design of the
firm co-evolve with the environment?
_ Understanding the environment is important
because an organization is an open system.
_ General environment.
The set of cultural, economic, legal-political, and
educational conditions found in the areas in which the
organization operates.
_ Specific environment.
The owners, suppliers, distributors, government
agencies, and competitors with which an organization
must interact to grow and survive.
_Environmental complexity.
The magnitude of problems and opportunities
in the organizations environment, as reflected
in:
Degree of richness.
Degree of interdependence.
Degree of uncertainty.
More complex environments provide more
problems and opportunities.
_Environmental richness.
The environment is richer when:
The economy is growing.
Individuals are improving their education.
Those on whom the organization relies are
prospering.
A rich environment has more opportunities
and dynamism.
The opposite of richness is decline.
_Environmental interdependence.
Linkage between environmental independence
and organization design may be subtle and
indirect.
Organization may co-opt powerful outsiders.
Organization may absorb or buffer demands of
powerful external elements.
_Environmental uncertainty.
Uncertainty and volatility can be particularly
damaging to large bureaucracies.
A more organic form is the appropriate
organizational design response to uncertainty
and volatility.
Adhocracy may be needed extreme
uncertainty and volatility.
_In a complex global economy, firms must
learn to co-evolve by altering their
environment.

_Two important ways of co-evolution:
Management of networks.
Development of alliances.
_Networks and alliances around the world.
Informal combines or cartels exist in Europe
but are illegal in the United States except in
rare cases.
Networks are called keiretsu in Japan.
Bank-centered keiretsu.
Vertical keiretsu.
In the United States, outsourcing is developing
as a specialized form of network organization.
_Interfirm alliances.
Announced cooperative agreements or joint
ventures between two independent firms.
Alliances are quite common in high
technology industries.
Since firms cooperate rather than compete;
consequently, both the alliance managers and
sponsoring executives must be patient,
flexible, and creative in pursuing goals.
_Virtual organization.
An ever-shifting constellation of firms, with a
lead corporation, that pool skills, resources,
and experiences to thrive jointly.
A design option when internal and external
contingencies are changing quickly.
_ Key to making a virtual organization work.
The production system needs to be in a partner
network bound together by mutual trust and survival.
The partner network needs to develop and maintain an
advanced IT, trust and cross-owning of problems and
solutions, and a common shared culture.
The lead firm must take responsibility for the whole
network and coordinate member firm actions.
The lead corporation and the partners need to rethink
how they are internally organized and managed.
_Boundaryless organization.
A design option that eliminates vertical,
horizontal, external, and geographic barriers
that block desired action.
Actions to create a boundaryless organization.
Executives should systematically examine the
organization and its processes.
Organization members should initiate a process of
improving their cooperation.
Study Question 4: How does a firm learn
and continue to learn over time?
_ Organizational learning.
Process of knowledge acquisition, information
distribution, information interpretation, and
information retention in adapting successfully to
changing circumstances.
Adjustment of organizations and individuals actions
based on experience.
The key to successful co-evolution.
_Mimicry.
Occurs when managers copy what they believe
are the successful practices of others
Is important to new firms.
Provides workable, if not ideal, solutions to many
problems.
Reduces the number of decisions that need to be
analyzed separately.
Establishes legitimacy or acceptance and narrows
the choices requiring detailed explanation.
_Experience.
A primary way to acquire knowledge.
Besides learning by doing, managers can also
systematically embark on structured programs
to capture the lessons to be learned.
The major problem with emphasizing learning
by doing is the inability to precisely forecast
changes.
_Scanning.
Involves looking outside the firm and bringing
back useful solutions.
_Grafting.
The process of acquiring individuals, units, or
firms to bring in useful knowledge.
_Common problems in information
interpretation.
Self-serving interpretations.
People seeing what they want to see, rather than
seeing what is.
Managerial scripts.
A series of well-known routines for problem
identification and alternative generation and
analysis that are commonly used by a firms
managers.
_Organizational myths.
Commonly held cause-effect relationships or
assertions that cannot be empirically
supported.
Common myths.
_ Single organizational truth.
_ Presumption of competence.
_ Denial of tradeoffs.
_Information retention mechanisms.
Individuals.
Organizational culture.
Transformation mechanisms.
Formal organizational structures.
Ecology.
External archives.
Internal information technologies.
_Deficit cycles.
A pattern of deteriorating performance that is
followed by even further deterioration.
Factors associated with deficit cycles.

Organizational inertia.
Hubris.
Detachment.
_Benefit cycles.
A pattern of successful adjustment followed
by further improvements.
Firms can successfully co-evolve by initiating
a benefit cycle.
The firm develops adequate mechanisms for
learning.
_What is organizational culture?
_How do you understand an organizational
culture?
_How can the organizational culture be
managed?
_How can you use organizational
development to improve the firm?
organizational culture?
_Organizational culture.
The system of shared actions, values, and
beliefs that develops within an organization
and guides the behaviour of its members.
Called corporate culture in the business
setting.
No two organizational cultures are identical.
_External adaptation.
Involves reaching goals and dealing with
outsiders regarding tasks to be accomplished,
methods used to achieve the goals, and
methods of coping with success and failure.
Important aspects of external adaptation.
Separating eternal forces based on importance.
Developing ways to measure accomplishments.
Creating explanations for not meeting goals.
_ External adaptation involves answering important
goal-related questions regarding coping with
reality.
What is the real mission?
How do we contribute?
What are our goals?
How do we reach our goals?
What external forces are important?
How do we measure results?
What do we do if specific targets are not met?
How do we tell others how good we are?
When do we quit?
_Internal integration.
Deals with the creation of a collective identity
and with finding ways of matching methods of
working and living together.
Important aspects of working together.
Deciding who is a member and who is not.
Developing an understanding of acceptable and
unacceptable behaviour.
Separating friends from enemies.
_ Internal integration involves answering important
questions associated with living together.

What is our unique identity?
How do we view the world?
Who is a member?
How do we allocate power, status, and authority?
How do we communicate?
What is the basis for friendship?
_Subculture.
A group of individuals with a unique pattern
of values and philosophy that are not
inconsistent with the organizations dominant
values and philosophy.
_Counterculture.
A group of individuals with a pattern of values
and philosophy that outwardly reject the
surrounding culture.
_ Problems associated with subcultural divisions
within the larger culture.
Subordinate groups are likely to form into a
counterculture pursuing self-interests.
The firm may encounter extreme difficulty in coping
with broader cultural changes.
Embracing natural divisions from the larger culture
may lead to difficulty in international operations.
_ Taylor Coxs five step program.
Step 1: The organization should develop pluralism.
Step 2: The organization should fully integrate its
structure.
Step 3: The organization must integrate the informal
networks.
Step 4: The organization should break the linkage
between naturally occurring group identity and
organizational identity.
Step 5: The organization must actively work to
eliminate identity-based interpersonal conflict.
understand an organizational culture?
_ Sagas.
Heroic accounts of organizational accomplishments.
_ Rites.
Standardized and recurring activities that are used at
special times to influence organizational members.
_ Rituals.
Systems of rites.
_ Cultural symbols.
Any object, act, or event that serves to transmit
cultural meaning.
_Culture often specifies rules and roles.
Rules.
The various types of actions that are appropriate.
Roles.
Where individual members stand in the social
system.
_Shared values.
Help turn routine activities into valuable and
important actions.

Tie the organization to the important values of
society.
May provide a very distinctive source of
competitive advantage.
_Characteristics of strong corporate
cultures.
A widely shared real understanding of what
the firm stands for, often embodied in slogans.
A concern for individuals over rules, policies,
procedures, and adherence to job duties.
A recognition of heroes whose actions
illustrate the companys shared philosophy
and concerns.
_Characteristics of strong corporate cultures
(cont.).
A belief in ritual and ceremony as important to
members and to building a common identity.
A well-understood sense of the informal rules
and expectations so that employees and
managers know what is expected of them.
A belief that what employees and managers do
is important and that it is essential to share
information and ideas.
_Organizational myths.
Unproven and often unstated beliefs that are
accepted uncritically.
Myths enable managers to redefine impossible
problems.
Myths can facilitate experimentation and
creativity.
Myths allow managers to govern.
_National culture influences.
Widely held common assumptions may be
traced to the larger culture of the host society.
National cultural values may become
embedded in expectations of organization
members.
Study Question 3: How can the
organizational culture be managed?
_Strategies for managing corporate culture.
Managers help modify observable culture,
shared values, and common assumptions
directly.
Use of organizational development techniques
to modify specific elements of the culture.
_Why a well-developed management
philosophy is important.
Establishes generally understood boundaries
on all members of the firm.
Provides a consistent way for approaching
new and novel situations.
Helps hold individuals together by showing
them a known path to success.
_ Strategies for building, reinforcing, and changing
organizational culture.
Directly modifying the visible aspects of culture.

Changing the lessons to be drawn from common
stories.
Setting the tone for a culture and for cultural change.
Fostering a culture that addresses questions of external
adaptation and internal integration.
_ Mistakes that managers can make in building,
reinforcing, and changing culture.
Trying to change peoples values from the top
down:
While keeping the ways in which the organization
operates the same.
Without recognizing the importance of individuals.
Attempting to revitalize an organization by
dictating major changes and ignoring shared
values.
Study Question 4: How can you use
organization development to improve the firm?
_Organization development (OD).
The application of behavioural science
knowledge in a long-range effort to improve
an organizations ability to cope with change
in its external environment and to increase its
internal problem-solving capabilities.
_Organizational development.
Designed to work on both issues of external
adaptation and internal integration.
Used to improve organizational performance.
Seeks to achieve change so the organizations
members maintain the culture and longer-run
organizational effectiveness.
_ Underlying assumptions of OD.
Individual level.
Respect for people and their capabilities.
Group level.
Belief that groups can be good for both people and
organizations.
Organizational level.
Respect for the complexity of an organization as a
system of interdependent parts.
_Organization development goals.
Outcome goals.
Mainly deal with issues of external adaptation.
Process goals.
Mainly deal with issues of internal integration.
_ In pursuing outcome and process goals, OD helps
by:
Creating an open problem solving climate.
Supplementing formal authority with knowledge and
competence.
Moving decision making where relevant information
is available.
Building trust and maximizing collaboration.
Increasing the sense of organizational ownership.
Allowing people to exercise self-direction and selfcontrol.
_Action research.
The process of systematically collecting data
on an organization, feeding it back to the

members for action planning, and evaluating
results by collecting and reflecting on more
data after the planned actions have been taken.
_Organizationwide OD interventions.
Survey feedback.
Collection and feedback of data to organization
members for action planning purposes.
Confrontation meetings.
Activities for quickly determining how an
organization can be improved and taking initial
actions for betterment.
_Organizationwide OD interventions
(cont.).
Structural redesign.
Realigning the organizations structure or major
subsystems.
Collateral organization.
Using representative organizational members in
periodic small group problem-solving sessions.
_Group and intergroup OD interventions.
Team building.
Activities to improve the functioning of a group.
Process consultation.
Activities to improve the functioning of key group
processes.
Intergroup team building.
Activities to improve the functioning or two or
more groups.
_Individual OD interventions.
Role negotiation.
Clarifying expectations in working relationships.
Job redesign.
Creating long-term congruence between individual
goals and organizational career opportunities.
Career planning.
Structured opportunities for individuals to work
with managers or staff experts on career issues.
Thank You
www.bookfiesta4u.com
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What is organizational behaviour and why is it important?

What are organizations like as work settings?

What is organizational behaviour and why is it important?

Workplace success depends on:

Respect for people.

Organizations and their members are challenged to:

Simultaneously achieve high performance and high quality of life.

Reasons for importance of scientific thinking.

The process of data collection is controlled and systematic.

Modern workplace trends.

Commitment to ethical behaviour.

What are organizations like as work settings?

People, groups, and institutions having an interest in an organizations performance.

Organizational culture and diversity.

Respect people and workforce diversity.

Organizational effectiveness approaches.

Longitudinal views of organizational effectiveness.

Study Question 3: What is the nature of managerial work?

The management process.

The nature of managerial work.

Managers work long hours.

Reflective mind-set managing ones self.

Managerial skills and competencies.

How do we learn about organizational behaviour?

Learning is an enduring change in behaviour that results from experience.

What is a high-performance organization?

Value and empower people, and respect diversity.

Mobilize the talents of self-directed work teams.

Use cutting-edge technologies to achieve success.

Thrive on learning and enable members to grow and develop.

Study Question 1: What is a highperformance

Allows people, individually and in groups, to

in order to preserve high ethical standards.

_Personal management and career planning.

Study Question 2: What is culture and how can

People who live and work abroad for extended

The overall profile or combination of

and dislike routine.

Study Question 2: How do

developed through experience.

impressions in others eyes.

Level the amount of effort a person puts forth.

Organizational Behaviour: Chapter 6 172

Punishing poor performance enhances

Managerial implication help people achieve

Study question 2: What are jobdesign

performance if holding two jobs, failure to qualify for

Organizational Behaviour: Chapter 8 226

Study Question 2: What is performance

The process and procedures used to collect

Chapter 9 Study Questions

Organizational Behaviour: Chapter 9 266

Organizational Behaviour: Chapter 9 274

Study Question 3: What are the

Two or three people are able to dominate or railroad the

Study Question 4: How do groups

Organizational Behaviour: Chapter 10 301

_ Groups members should avoid the following

Organizational Behaviour: Chapter 10 318

_What are attributional approaches to

Least preferred co-worker (LPC) score reflects

influenced by attempts to understand causes of

Active management by exception.

your exercise of power.