Test 3 Flashcards

(168 cards)

1
Q

organizing

A

organizing plays a key role as one of the four functions of management shown in Figure 8.1. Think of it as the process of arranging people and resources so that they can work together to accomplish goals. Once goals are set in the planning phase, organizing puts people and resources in place to carry them out.

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2
Q

organization structure

A

When managers organize things, they arrange people and jobs into meaningful working relationships. They clarify who is to do what, who is in charge of whom, and how different people and work units are supposed to cooperate. This creates what we call the organization structure, a formal arrangement that links the various parts of an organization.

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3
Q

organization chart

A

You probably know the concept of structure best in terms of an organization chart. This is a diagram of positions and reporting relationships within an organization.5 A typical organization chart identifies major job titles and shows the hierarchy of authority and communication that links them. It describes the organization’s division of labor—people and groups performing different jobs, ideally ones for which they are well skilled.

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4
Q

formal structure

A

What You Can Learn from an Organization Chart. And indeed you can learn quite a bit from an organization chart, but only in respect to the formal structure.

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5
Q

informal structure

A

An important fact of organizational life is that behind every formal structure also lies an informal structure. You might think of this as a shadow organization made up of unofficial relationships between organizational members. Like any shadow, the shape of the informal structure will be blurry and change with time. You may have to work hard to understand its full complexities. Informal structures create helpful relationships for social support and task assistance, but they can be susceptible to rumors.

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6
Q

social network analysis

A

A tool known as social network analysis is one way of identifying the informal structures and their embedded social relationships that are active in an organization. It asks people to identify others whom they turn to for help most often, whom they communicate with regularly, and who energizes and de-energizes them.9 The results of a social network analysis are often described as a map with lines running from person to person according to frequency of communication and type of relationship maintained.

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7
Q

departmentalization

A

The process of arranging people by tasks and work groups is called departmentalization.13 The most basic forms are the functional, divisional, matrix, team, and network structures. As you read about each, don’t forget that organizations rarely use only one type of structure. Most often they will use a mixture, with different parts and levels having different structures because of their unique needs.

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8
Q

functional structures

A

What organizing logic do you see? These are functional structures where people having similar skills and performing similar tasks are grouped together into formal work units. The assumption is that if the functions are well chosen and each acts properly, the organization should operate successfully. In business, for example, typical functions include marketing, finance, accounting, production, management information systems, and human resources. But functional structures are not limited to businesses. The figure also shows how other organizations such as banks and hospitals may use them.

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9
Q

functional silos

A

Another concern is something that you might hear called the functional chimneys or functional silos problem. Shown in the small figure, this problem occurs as a lack of communication, coordination, and problem solving across functions. Instead of cooperating with one another, members of functional units sometimes end up either competing or selfishly focusing on functional goals rather than broader organizational objectives.

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10
Q

divisional structure

A

A second organizational alternative is the divisional structure shown in Figure 8.3. It groups together people who work on the same product, serve similar customers, and/or are located in the same area or geographical region.16
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11
Q

product structures

A

Product structures group together jobs and activities devoted to a single product or service. They identify a common point of managerial responsibility for costs, profits, problems, and successes in a defined market area. An expected benefit is that the product division will be able to respond quickly and effectively to changing market demands and customer tastes. When Fiat took over Chrysler after it emerged from bankruptcy, CEO Sergio Marchionne said he wanted a new structure to “speed decision making and improve communication flow.” He reorganized into product divisions for the firm’s three brands—Chrysler, Jeep, and Dodge. Each was given its own chief executive and assigned responsibility for its own profits and losses.18 The “new” General Motors took the same approach and reorganized around four product divisions—Buick, Cadillac, Chevrolet, and GMC.19

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12
Q

Potential Advantages of Divisional Structures

A


Expertise is focused on special products, customers, or regions.

Better coordination exists across functions within divisions.

There is better accountability for product or service delivery.

It is easier to grow or shrink in size as conditions change.

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13
Q

geographical structure

A

Geographical structures, or area structures, group together jobs and activities in the same location or geographical region. Companies use geographical divisions when they need to focus attention on the unique product tastes or operating requirements of particular regions. As UPS operations expanded worldwide, for example, the company announced a change from a product to a geographical organizational structure. The company created two geographical divisions—the Americas and Europe/Asia—with each area responsible for its own logistics, sales, and other business functions.

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14
Q

customer structures

A

Customer structures group together jobs and activities that serve the same customers or clients. The major appeal of customer divisions is the ability to best serve the special needs of the different customer groups. This is a common structure for complex businesses in the consumer products industries. 3M Corporation, for example, structures itself to focus on such diverse markets as consumer and office, specialty materials, industrial, health care, electronics and communications, transportation, graphics, and safety. Customer structures are also useful in service companies and social agencies. Banks, for example, use them to give separate attention to consumer and commercial customers for loans; government agencies use them to focus on different client populations.

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15
Q

matrix structure

A

The matrix structure, often called the matrix organization, combines the functional and divisional structures to try to gain the advantages of each. This is accomplished by setting up permanent teams that operate across functions to support specific products, projects, or programs.20 Workers in a typical matrix structure, like Figure 8.4, belong to at least two formal groups at the same time—a functional group and a product, program, or project team. They also report to two bosses—one within the function and the other within the team.

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16
Q

cross funcitonal teams

A

The use of permanent cross-functional teams in matrix structures creates several potential advantages. These are teams whose members come together from different functional departments to work on a common task. Everyone, regardless of his or her departmental affiliation, is required to work closely with others and focus on team goals—no functional chimneys thinking is allowed. Expertise and information is shared to solve problems at the team level and make sure that things are accomplished in the best ways possible.

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17
Q

team structures

A

Many organizations adopt team structures that extensively use permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks.22 As Figure 8.5 shows, these teams are often formed across functions and staffed with members whose talents match team tasks.23 The goals are to reduce the functional chimneys problem, tap the full benefits of group decision making, and gain as much creativity in problem solving as possible. At Polaroid Corporation, a research team developed a new medical imaging system in three years, when most had predicted it would take six. As one Polaroid executive noted, “Our researchers are not any smarter, but by working together they get the value of each other’s intelligence almost instantaneously.”24

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18
Q

How Do Team Structures Capture the Benefits of Cross-Functional Teams?

A

Team structures make extensive use of teams to improve organizations through better communication and problem solving across functions. Some teams are temporary, such as a project team that convenes to create a new product and then disbands when finished. Other teams are more permanent. They bring together members from different functions to work together on standing issues and common problems, such as quality control, diversity management, labor-management relations, or health care benefits.

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19
Q

Potential Advantages of Team Structures

A


Team assignments improve communication, cooperation, and decision making.

Team members get to know each other as persons, not just job titles.

Team memberships boost morale and increase enthusiasm and task involvement.

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20
Q

network structure

A

a network structure links a central core of full-time employees with “networks” of relationships to outside contractors and partners that supply essential services. Because the central core is relatively small and the surrounding networks can be expanded or shrunk as needed, the potential advantages are lower costs, more speed, and greater flexibility in dealing with changing environments.25
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21
Q

How Do Network Structures Take Advantage of Strategic Alliances and Outsourcing?

A

Organizations using network structures replace some full-time positions and functions with services provided by alliance partners and outsourcing contractors. In these structures, “core” employees perform essential operations at the center of a “network” that links them with a shifting mix of outside partners and contractors. The example in this figure shows that a small group of people can run a mail-order business in this manner. A lot of network activities are made easy and cost efficient by using the latest information technologies.

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22
Q

Potential Advantages of Network Structures

A


Lower costs due to fewer full-time employees.

Better access to expertise through specialized alliance partners and contractors.

Easy to grow or shrink with market conditions.

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23
Q

virtual organization

A

virtual organization, it uses information technologies to operate a constantly shifting network of alliances.27 The goal is to use virtual networks to eliminate boundaries that traditionally separate a firm from its suppliers and customers and its internal departments and divisions from one another. The intense use of IT allows virtual relationships to be called into action on demand. When the work is done, they are disbanded or left idle until next needed.

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24
Q

organizational design

A

d organizational design. It deals with the choices managers make to configure their organizations to best meet the problems and opportunities posed by their environments.29 And because every organization faces unique challenges, there is no “one fits all” best design. Organizational design is a problem-solving activity where managers strive to get the best configuration to meet situational demands.

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25
span of control
ne of the things affected when organizations do get flatter is span of control—the number of persons directly reporting to a manager. When span of control is narrow, as shown in the small figure, a manager supervises only a few people. Taller organizations have many levels of management and narrow spans of control. A manager with a wide span of control supervises many people. Flatter organizations with fewer levels of management have wider spans of control. w0167
26
centralization and decentralization
When top management keeps the power to make most decisions, the setup is called centralization. When top management allows lower levels to make decisions on matters where they are best prepared or informed, the setup is called decentralization.
27
delegation
Delegation is the process of entrusting work to others by giving them the right to make decisions and take action.
28
steps of delegation
1. Assign responsibility—explain tasks and expectations to others. 2. Grant authority—allow others to act as needed to complete tasks. 3. Create accountability—require others to report back on the completed tasks
29
empowerment
And let's not forget that when delegation is done well it leads to empowerment. This is the process of giving people the freedom to contribute ideas, make decisions, show initiative, and do their jobs in the best possible ways. Empowerment unlocks the full power of talent, experience, and intellect that people bring to their jobs. It is the engine that powers decentralization. And when it becomes part of the organizational culture, it helps everyone act faster and be more flexible when dealing with today's dynamic environments.
30
bureacracy
You should remember the concept of bureaucracy from earlier discussion in this book. Its distinguishing features are clear-cut division of labor, strict hierarchy of authority, formal rules and procedures, and promotion based on competency. According to Max Weber, bureaucracies should be orderly, fair, and highly efficient.35 Yet chances are that your image of a bureaucracy is an organization bogged down with “red tape,” which acts cumbersome and impersonal and is sometimes overcome to the point of inadequacy by rules and procedures.
31
mechanistic design
A more bureaucratic form of organization, which Burns and Stalker called the mechanistic design, thrived in stable environments. It was good at doing routine things in predictable situations. But in rapidly changing and uncertain situations, a much less bureaucratic form, called the organic design, performed best. It was adaptable and better suited to handle change and less-predictable situations.
32
What Are the Major Differences Between Mechanistic and Organic Organizations Designs?
Some indicators of a more organic design are decentralization, few rules and procedures, wider spans of control, sharing of tasks, use of teams and task forces, and informal or personal approaches to coordination. This organic design is most associated with success in dynamic and changing environments. The more mechanistic design has mainly bureaucratic features and is more likely to have difficulty in change environments but to be successful in more stable ones.
33
compressed workweek
A compressed workweek allows a worker to complete a full-time job in less than the standard five days of 8-hour shifts.
34
flexible working hours
The term flexible working hours, also called flextime, describes any work schedule that gives employees some choice in daily work hours.
35
telecommuting
More and more people now do some form of telecommuting.47 They spend at least a portion of scheduled work hours at home or outside the office linked with co-workers, customers, and bosses by a variety of information technologies
36
co-working center
A recent development in telecommuting is the co-working center, essentially a place where telecommuters go to share an office environment outside the home.
37
job sharing
Yet another flexible scheduling option is job sharing, where two or more persons split one full-time job
38
organizatinal culture
hey help display the organizational culture as a system of shared beliefs and values that develops within an organization and guides the behavior of its members.2
39
strong culture
n strong culture organizations, the culture is clear, well defined, performance driven, and widely shared by members. The culture fits the nature of the business and the talents of the employees. It discourages dysfunctional behaviors and encourages helpful ones while keeping a clear performance vision front and center for all to rally around
40
socialization
trong and positive cultures don't happen by chance. They are created by leaders who set the tone, and they are reinforced through socialization.7 This is the process of helping new members learn the culture and values of the organization, as well as the behaviors and attitudes that are shared among its members.8 Each new Disney employee, for example, attends a program called “traditions.
41
alternative organizational structures
Based on a model called the competing values framework, it identifies four different culture types.11 Hierarchical cultures emphasize authority, tradition, and clear roles. Rational cultures emphasize process, efficiency, and slow change. Entrepreneurial cultures emphasize change, growth, creativity, and competition. Team cultures emphasize teamwork, collaboration, and trust. How do these options sound to you? According to a study by LeadershipIQ, employees are likely to give entrepreneurial cultures the highest marks for engagement and motivation, and as good places to work
42
observable culture
The observable culture is what you see in people's behaviors and hear in their conversations. It is reflected in how people dress at work, arrange their offices, speak to and behave toward one another, and talk about and treat their customers
43
core culture
A second and deeper level of organizational culture is called the core culture. It consists of the core values, or underlying assumptions and beliefs, that shape and guide people's behaviors. Values in some of the best companies, for example, often emphasize performance excellence, innovation, social responsibility, integrity, worker involvement, customer service, and teamwork
44
value based management
When managers practice the core values, model them for others, and communicate and reinforce them in all that they do, this is called value-based management. It is managing with a commitment to actively help develop, communicate, and represent shared values within an organization. An incident at Tom's of Maine provides an example of value-based management.1
45
workplace spirituality
The notion of workplace spirituality is sometimes linked with value-based management and symbolic leadership. Although the first tendency might be to associate the term “spirituality” with religion, it is used in management to describe practices that try to enrich people's lives by bringing meaning to their work and helping them engage one another with a sense of shared community
46
Innovation in and by organizations is often discussed in three forms.
Organizations pursue process, product, and business model innovations
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process innovations
Process innovations result in better ways of doing things
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product innovations
Product innovations result in the creation of new or improved goods and services
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business model innovations
Business model innovations result in new ways of making money for the firm.21 Consider these examples.22
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green innovation
Today we can add green innovation, or sustainable innovation, to the list of innovation types. Such innovations support sustainability by reducing the carbon footprint of an organization or its products.
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social innovation
Social innovation can be described as innovation driven by a social conscience.
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social entrepeneurship
It stems from creativity in social entrepreneurship that pursues innovative ways to solve pressing social problems.24 And, the whole concept is very relevant today. Management consultant Peter Drucker once said: “Every single social and global issue of our day is a business opportunity in disguise
53
commercializing innovation
commercializing innovation—that turns new ideas—the inventions—into actual products, services, or processes—the applications—that generate profits through more sales or lower costs.
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How Do Organizations Commercialize Innovation?
In business it is the process of commercializing innovation that turns new ideas into actual products, services, or processes that can increase profits through greater sales or reduced costs. This requires management encouragement and support for idea creation (invention and the act of discovery), experimentation and feasibility determination, and final application (actually putting the tested idea into use).
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reverse innovation
reverse innovation. Sometimes called trickle-up innovation, the concept got its start in the world of global business.29 Firms have shifted away from only viewing innovation as something done “at home” and then transferred to “foreign or emerging markets.” Instead, reverse innovation takes products and services developed in emerging markets, often subject to pricing constraints, and finds ways to use them elsewhere. In fact, management scholar C. K. Prahalad goes so far as to call emerging market settings “laboratories for radical innovation.”
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disruptive innovation
t disruptive innovation occurs. Harvard Scholar Clay Christensen defines it as the creation of an innovative product or service that starts out small scale and then moves “up market” to where it is so widely used it displaces prior practices and competitors.31 Historical examples include cellular phones that disrupted traditional landlines and discount retailers that disrupted traditional full-line department stores. Online e-retailers are now disrupting fixed-place stores, and online video gaming and movie streaming businesses are disrupting “buy and own” business models.
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skunkworks
he term skunkworks is often used to describe special units set free from the normal structure and given separate locations, special resources, and their own managers, all with the purpose of achieving innovation.
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highly innovative organization
strategy includes innovation, culture values innovation, structures support innovation, staffing builds talent for innovation
59
change leaders
change leaders and take initiative to change the existing pattern of behavior of another person or social system
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transformational change
transformational change. It is supposed to result in a major and comprehensive redirection of the organization—new vision, new strategy, new culture, new structure, and even new people.43
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incremental change
This is incremental change that tweaks and nudges people, systems, and practices to better align them with emerging problems and opportunities. The intent isn't to break and remake the system, but to move it forward through continuous improvements.
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three phrases of planning change
Managers seeking to lead change in organizations can benefit from a simple but helpful model developed by the psychologist Kurt Lewin. He describes how change situations can be analyzed and addressed in three phases: unfreezing—preparing a system for change; changing—making actual changes in the system; and refreezing—stabilizing the system after change
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unfreezing
Unfreezing is the stage in which managers help others to develop, experience, and feel a real need for change. The goal here is to get people to view change as a way of solving a problem or taking advantage of an opportunity. Some might call this the “burning bridge” phase, arguing that to get people to jump off a bridge, you might just have to set it on fire. Managers can simulate the burning bridge by engaging people with facts and information that communicate the need for change—environmental pressures, declining performance, and examples of alternative approaches. And as you have probably experienced, conflict can help people to break old habits and recognize new ways of thinking about or doing thing
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changing
The changing phase is where actual change takes place. Ideally these changes are planned in ways that give them the best opportunities for success, having maximum appeal and posing minimum difficulties for those being asked to make them. Although this phase should follow unfreezing in Lewin's model, he believes it is often started too early. When change takes place before people and systems are ready for it, the likelihood of resistance and change failure is much greater. In this sense Lewin might liken the change process to building a house: You need to put a good foundation in place before you begin the framing
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refreezing
As shown in Figure 9.3, the final stage in the planned change process is refreezing. Here, the focus is on stabilizing the change to make it as long lasting as needed. Linking change with rewards, positive reinforcement, and resource support all help with refreezing. Of course, in today's dynamic environments there may not be a lot of time for refreezing before things are ready to change again. You may well find that refreezing in Lewin's sense probably gives way quite often to another phase of evaluating and reassessing. In other words, we begin preparing for or undertaking more change even while trying to take full advantage of the present one.
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What Are the Change Leader Responsibilities in Lewin's Three Phases of Planned Change?
Kurt Lewin identified three phases of the planned change process. The first is unfreezing, the phase where people open up and become receptive to the possibility of change. The second is changing, where the actual change happens and the new ways of doing things are put into place. Third is refreezing, the phase where changes are stabilized to become part of ongoing routines. Lewin believed that change agents often neglect unfreezing and move too quickly into the changing phase, thus setting the stage for change failures. They may also neglect refreezing, with the result that any achieved change has only temporary effects.
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improvisational change
The sheer complexity of organizations also creates a need for improvisational change where adjustments are continually made as changes are being implemented
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What Happens When a Change Leader Uses Different Types of Change Strategies?
Force-coercion strategies use authority, offers of rewards, and threats of punishment to push change forward. The likely results are, at best, temporary compliance. Rational persuasion strategies use information, facts, and logic to present a persuasive case in support of change. The likely outcomes are compliance with reasonable commitment. Shared power strategies engage others and allow them to participate in the change process, from initial planning through implementation. The high involvement tends to build more internalization and greater commitments to change.
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force coercion strategy
A force-coercion strategy uses the power bases of legitimacy, rewards, and punishments as the primary inducements to change.51 It comes in at least two types. In a direct forcing strategy, the change agent takes direct and unilateral action to command that change take place. This involves the exercise of formal authority or legitimate power, offering special rewards, and/or threatening punishment. In political maneuvering, the change agent works indirectly to gain special advantage over other persons to force the change. This involves bargaining, obtaining control of important resources, forming alliances, or granting favors.
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rational persuasion strategy
An alternative to force-coercion is the rational persuasion strategy, attempting to bring about change through persuasion backed by special knowledge, information, facts, and rational argument. The likely outcome of rational persuasion is compliance with reasonable commitment. This is actually the strategy that you learn and practice so much in school when writing reports and making formal presentations on group projects. You'll do a lot of rational persuasion in the real world as well. But as you probably realize, success with the strategy depends on having very good facts and information—the rational part, and then being able to communicate them well—the persuasion part.
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shared power strategy
A shared power strategy engages people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge. Although slow, the process is likely to yield high commitment. Sometimes called a normative re-educative strategy, this approach relies on empowerment and participation
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Why People May Resist Change
Fear of the unknown—not understanding what is happening or what comes next Disrupted habits—feeling upset to see the end of the old ways of doing things Loss of confidence—feeling incapable of performing well under the new ways of doing things Loss of control—feeling that things are being done “to” you rather than “by” or “with” you Poor timing—feeling overwhelmed by the situation or feeling that things are moving too fast Work overload—not having the physical or psychic energy to commit to the change Loss of face—feeling inadequate or humiliated because it appears that the old ways weren't good ways Lack of purpose—not seeing a reason for the change and/or not understanding its benefits
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human resource management
f human resource management (HRM) is supposed to do just that—attract, develop, and maintain a talented and energetic workforce. Its purpose is to ensure that an organization is always staffed with the best people so that all jobs get done in the best possible ways. You might think of the goal of HRM this way—to build organizational performance capacity through people.
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The three major responsibilities of human resource management are typically described as follows.
1. Attracting a quality workforce—focus on employee recruitment and selection 2. Developing a quality workforce—focus on employee orientation, training and development, and performance management 3. Maintaining a quality workforce—focus career development, work-life balance, compensation and benefits, retention and turnover, and labor-management relations
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human capital
human capital, the economic value of people's abilities, knowledge, experience, ideas, energies, and commitments. When Sheryl Sandberg left her senior management post with Google to become Facebook's chief operating officer, she made human capital her top priority. She strengthened the firm's human resource management systems with updated approaches for employee performance reviews, innovative recruiting methods, and new management training
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strategic human resource management
These initiatives are consistent with the concept of strategic human resource management—mobilizing human capital through the HRM process to best implement organizational strategies.6
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job discrimination
If valuing people is at the heart of human resource management, job discrimination is the enemy. It occurs when an organization denies someone employment or a job assignment or an advancement opportunity for reasons that are not performance relevant.7
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equal employment opportunity
n important cornerstone of U.S. laws designed to protect workers from job discrimination is Title VII of the Civil Rights Act of 1964, amended by the Equal Employment Opportunity Act of 1972 and the Civil Rights Act (EEOA) of 1991. These acts provide for equal employment opportunity (EEO),
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affirmative action
itle VII also requires organizations to show affirmative action in their efforts to ensure equal employment opportunity for members of protected groups, those historically underrepresented in the workforce. Employers are expected to analyze existing workforce demographics, compare them with those in the relevant labor markets, and set goals for correcting any underrepresentation that might exist. These goals are supported by affirmative action plans that are designed to ensure that an organization's workforce represents women and minorities in proportion to their labor market availability.9
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bona fide occupational qualifications
As a general rule, the legal protections of EEO do not restrict an employer's right to establish bona fide occupational qualifications. These are criteria for employment that an organization can clearly justify as relating to a person's capacity to perform a job. However, EEO bars the use of employment qualifications based on race and color under any circumstances; those based on sex, religion, and age are very difficult to support.
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employee privacy
One of the emerging areas of controversy in employment discrimination involves social media use and employee privacy—the rights of employees to privacy on and off the job.14 Technology allows most employers to monitor telephone calls, e-mails, social media usage, and Internet searches to track your activities while on the job. The best advice on privacy at work is to assume you have none and act accordingly. But what about an employee's right to privacy outside work? While vacationing in Europe, a Florida teacher posted to her “private setting” Facebook pages photos that showed her drinking alcoholic beverages. After it came to the attention of school administrators, she was asked to resign. She did, but later filed a lawsuit stating her resignation was forced.15 The number of such social media lawsuits is growing, and their resolutions may help clear up just what is and is not against the law in the nonwork zone of employee privacy.
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pay discrimination
Pay discrimination is against the law. So when Lilly Ledbetter was about to retire from Goodyear and realized that male co-workers were being paid more, she sued. She initially lost the case because the Supreme Court said she had waited too long to file the claim. But she was smiling when the Lilly Ledbetter Fair Pay Act became the very first bill signed by President Barack Obama.
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pregnancy discrimination
How about pregnancy discrimination? It's also against the law, but pregnancy bias complaints filed with the U.S. Equal Employment Opportunity Commission are still common. A spokesperson for the National Partnership of Women & Families said that problems of pregnancy discrimination are “;escalating”h and require “national attention.”h17 Recent scholary research paints a bleak picture as well. One study had actors playing roles of visibly pregnant and nonpregnant applicants for jobs as corporate attorneys and college professors. Results showed that interviewers were more negative toward the “pregnant” females, even making comments such as “she'll try to get out of doing work” and “she would be too moody.
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age discrimination
Age discrimination, too, is against the law. But the EEOC is reporting an increased number of age bias complaints. Federal age discrimination laws protect employees aged 40 and up, and the proportion of workers in this age group is increasing with the “graying” of the American workforce. The possibility of age discrimination exists whenever an older worker is laid off or loses his or her job. But as one attorney points out: “There's always the fine line between what discrimination is and what is a legitimate business decision.” About 20% of age discrimination suits result in some financial settlement in favor of the person filing the claim; however, this doesn't always include getting the job back. And, older workers often face tough job searches. Data indicate that unemployment for workers over 50 lasts 27 more weeks than for younger ones.19
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employee value proposition
employee value proposition, or EVP. Think of it as an exchange of value, what the organization offers the employee in return for his or her work contributions.20 The value offered by the individual includes things like effort, loyalty, commitment, creativity, and skills. The value offered by the employer includes things like pay, benefits, meaningful work, flexible schedules, and personal development opportunities.
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person job fit
Person-job fit is the extent to which an individual's skills, interests, and personal characteristics match well with the requirements of the job. Person-organization fit is the extent to which and individual's values, interests, and behavior are consistent with the culture of the organization. The importance of a good fit to the employee value proposition is highlighted to the extreme at Zappos.com. Believe it or not, if a new employee is unhappy with the firm after going through initial training, Zappos pays them to quit. At last check the “bye-bye bounty” was $4,000, and some 2 to 3% of new hires were taking it each year
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recruitment
Employers engage in recruitment to attract a qualified pool of applicants to the organization. The word “qualified” is especially important here. Recruiting should bring employment opportunities to the attention of people whose skills, abilities, and interests meet job requirements. The process involves advertising the job, collecting a pool of applicants, and screening them to identify those who are most promising in terms of potential employability.
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realistic job preview
The lesson here is that it's important to press for a realistic job preview. This is one that gives you both the good points and the bad points of the job and organization, and fully answers all your questions … before you make the decision to join or not.27
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selection
. Selection involves choosing to hire applicants who offer the greatest performance potential. This is really an exercise in prediction—trying to anticipate whether the candidate will perform well once on the job. The typical sequence involves in-depth interviewing, some form of testing, perhaps a real-time assessment of how well the candidate works on actual or simulated job tasks, and background checks that may include Web searches and reviews of personal postings on social media sites.
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reliability
Reliability means that the test provides a consistent measurement, returning the same results time after time.
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validity
Validity means that the test score is a good predictor of future job performance, with a high score associated with high job performance and vice versa.
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assessment strengths
One of the popular developments in employment testing is the use of assessment centers. They allow recruiters to evaluate a person's job potential by observing his or her performance in experiential activities designed to simulate daily work.
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work sampling
A related approach is work sampling, which asks candidates to work on actual job tasks while observers grade their performance. Google uses a form of this called “Code Jams.” These are essentially contests that the firm runs to find the most brilliant software coders. Winners get financial prizes and job offers. Code Jams are held worldwide, and a company spokesperson says: “Wherever the best talent is, Google wants them.”28
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socialization
Socialization is the process of influencing the expectations, behavior, and attitudes of a new hire in a desirable way. It begins with the human resource management practice of orientation—a set of activities designed to familiarize new employees with their jobs, co-workers, and key values, policies, and other aspects of the organization as a whole.
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coaching
One training approach you might inquire about is coaching. This is where an experienced person provides performance advice to someone else. Ideally, a new employee is assigned a coach who can model desired work behaviors and otherwise help him or her to learn and make progress. Sometimes, the best coach is the manager. At other times, it may be a co-worker
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mentoring
You should also be interested in mentoring. This is where a new or early-career employee is assigned as a protégé to someone senior in his or her area of expertise, perhaps a high-level manager. Good mentoring programs can be a great boost to a newcomer's career. Mentors are supposed to take an interest in the junior person, provide guidance and advice on skills and career progress, and otherwise inform him or her about how one gets ahead careerwise in the organization.
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reverse mentoring
Some employers are using reverse mentoring where younger employees mentor seniors. A good example is technology-savvy Gen Ys tutoring their seniors on how to use social media in their jobs. Reverse mentoring programs are not only informative for senior managers, but they also provide younger employees with an important sense of buy-in and contribution. One human resource management consultant says: “It's exactly the kind of thing that's needed today because Gen Y-rs really want to be involved.
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performance review
Once a person is hired and on the job, one of the important functions of HRM is performance management. This involves using various techniques of performance review or performance appraisal to formally assess and give feedback on someone's work accomplishments.33 The purposes of a performance review are twofold. First, it measures and documents performance for the record. Second, it initiates a process of development that can improve performance in the future.34 For an appraisal method to serve these two purposes with credibility, it must satisfy the same reliability and validity criteria as do employment tests.35
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graphing rating scale
The graphic rating scale is one of the most basic performance review methods. Think of it as a checklist or scorecard for rating an employee on criteria such as work quality, attendance, and punctuality. Although simple and quick, graphic rating scales have questionable reliability and validity. They should probably be used only along with additional appraisal tools.
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behavioral anchored rating sale
The behaviorally anchored rating scale (BARS) is a more advanced approach to performance review. It describes actual behaviors that exemplify various levels of performance achievement in a job. The example in Figure 10.1 shows a BARS for a customer service representative. Note that “Extremely poor” performance is described with the behavioral anchor “treats a customer rudely and with disrespect.” Because the BARS relates performance assessments to specific descriptions of work behavior, it is more reliable and valid than the graphic rating scale. The behavioral anchors can also be used for training in job skills and objectives.
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360 feedback
In 360° feedback, superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder's performance.36 New technologies even allow such feedback to be offered online in real time, rather than just periodically. An example is Rypple, a Cloud-based program that allows users to post feedback questions in 140 characters or less. One might ask, for example, “What did you think of my presentation?” or “How could I have run that meeting better?” Rypple compiles the anonymous responses and sends 360°-type feedback to the person posting the query.37
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multiperson comparisons
Some performance appraisals use multiperson comparisons to avoid tendencies to rate everyone “about the same.” Instead, reviewers are asked to rate and rank people relative to one another. These multiperson comparisons can be done by rank-ordering people from top to bottom in order of performance achievement, with no ties allowed. They can be done by paired comparisons that first evaluate each person against every other and then create a summary ranking based on the number of superior scores. Or, they can be done by a forced distribution that places each person into a frequency distribution with fixed performance classifications—such as top 10%, next 40%, next 40%, and bottom 10
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career development
But often it's an issue of career development—the process of managing how a person grows and progresses from one point in a career to the next.
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career planning
. This means that we each have to be diligent in career planning, the process of systematically matching career goals and individual capabilities with opportunities for their fulfillment. It involves regularly asking and answering such questions as “Who am I?” “What can I do?” “Where do I want to go?” and “How do I get there?
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work life balance
Fast-paced and complicated lifestyles raise concerns about work-life balance. You have or will soon encounter it as the balance—or lack of balance—between the demands of careers and personal and family needs.42 Not surprisingly, the “family-friendliness” of an employer is now frequently used as a screening criterion by job candidates. It is also used in “best employer” rankings by magazines such as Business Week, Working Mother, and Fortune.
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independent contractor
Don't be surprised if you are asked some day to work only “as needed,” as a “freelancer,” or as an independent contractor. This means you are expected to work for an agreed-upon period or for an agreed-upon task, and without becoming part of the permanent workforce. You may be paid well, but there's no job security.
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contingency workers
We call them contingency workers because they supplement the full-time workforce by working as-needed and part-time, often on a long-term basis. Their increasing presence in the workforce leads some to say a “permanent temp economy” is the new reality for job hunters.49 And, employers tend to like it because contingency workers are easy to hire and fire to control costs and respond to cyclical demand
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merit pay
Pay increases for those on a merit pay system are based on some assessment of actual performance. A high merit raise sends a positive signal to high performers, whereas a low one sends a negative signal to poor performers. The notion is that this encourages both to work hard in the future.
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bonus pay
This is an example of bonus pay—one-time or lump-sum payments to employees based on the accomplishment of specific performance targets or some other extraordinary contribution, such as an idea for a work improvement. Perhaps you will someday receive a letter like one sent to two top executives by Amazon.com's chairman Jeff Bezos. “In recognition and appreciation of your contributions,” his letter read, “Amazon.com will pay you a special bonus in the amount of $1,000,000.
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profit sharing
In contrast to giving outright bonuses, profit sharing distributes to employees a proportion of net profits earned by the organization in a performance period. Gain sharing extends the profit-sharing concept by allowing groups of employees to share in any savings or “gains” realized when their efforts result in measurable cost reductions or productivity increases.
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stock options
Yet another merit pay approach is to grant employees stock options linked to their performance.59 Stock options give them the right to buy shares of stock at a future date at a fixed price. Employees holding options gain financially when the stock price rises above the original option price; they lose when it moves lower. Some companies “restrict” the stock options so that they come due only after designated periods of employment. This practice is meant to tie high performers to the employer and is often called the golden handcuff.
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fringe benefits
An employee's fringe benefits include nonmonetary forms of compensation such as health insurance and retirement plans. And, they can be a hot button in conversations about work today. Benefits, especially medical insurance and retirement, can add as much as 20% or more to a typical worker's earnings, but the cost to employers can increase faster than the cost of wages and salaries.
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family friendly benefits
A variety of family-friendly benefits are designed to help employees with work-life balance. These include child care, elder care, flexible schedules, and parental leave among others.
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flexible benefits
lso popular are flexible benefits that give employees budgets to choose a set of benefits that best meet their needs. There are also employee assistance programs that help with troublesome personal problems, such as dealing with stress, counseling on alcohol and substance abuse, domestic violence and sexual abuse, and family and marital difficulties.
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labor unions
Labor unions are organizations to which workers belong and that deal with employers on the workers' behalf. They act as a collective “voice” for their members, one that wouldn't be available to them as individuals. Historically, this voice of the unions has played an important role in American society. And even though unions are often associated with wage and benefit concerns, workers also join unions because of things like poor relationships with supervisors, favoritism or lack of respect by supervisors, little or no influence with employers, and failure of employers to provide a mechanism for grievance and dispute resolution.61
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labor contracts
These labor contracts typically specify the rights and obligations of employees and management with respect to wages, work hours, work rules, seniority, hiring, grievances, and other conditions of work.
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collective bargaining
The front line in labor-management relationship is collective bargaining, the process that brings management and union representatives together in negotiating, administering, and interpreting labor contracts. During a collective bargaining session, these parties exchange a variety of demands, proposals, and counterproposals. Several rounds of bargaining may take place before a contract is reached or a dispute resolved. Sometimes the process breaks down, and one or both parties walk away. The impasse can be short or lengthy, in some cases leading to labor actions that can last months and even years before agreements are reached.
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two tier wage system
One of the areas where unions and employers can find themselves on different sides of the bargaining issue relates to so-called two-tier wage systems. These are systems that pay new hires less than more senior workers already doing the same jobs. Agreeing to a two-tier system in collective bargaining isn't likely to be the preference of union negotiators. At a Goodyear factory in Alabama where a two-tiered system is in place, one of the high-seniority workers says: “If I was doing the same job, working just as hard and earning what they make, I'd be resentful.”63 But, the management side offers a counter argument. Getting a two-tier agreement in the labor contract can help keep the firm profitable and retain jobs in America that would otherwise be lost to foreign outsourcing. Such agreements are now in place at all the big U.S. automakers.6
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What Happens When Labor-Management Relations Become Adversarial?
When union and management representatives meet in collective bargaining, it would be nice if things were always cooperative. Unfortunately, they sometimes turn adversarial, and each side has weapons at its disposal to make things hard for the other. Unions can resort to strikes, boycotts, and picketing. Management can use lockouts, strike-breakers, and court injunctions to force strikers back to work. Although each side can find justifications in defense of using such tactics, they can also come with high price tags in terms of lost worker earnings and company profits.
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professionalism
Professionalism involves more than expertise. It means behaving with internalized commitments to special standards. Those standards may be determined by personal values, academic degrees, professional affiliations, and most certainly, company culture and practices. Managers need to be thoroughly professional in all areas of work responsibility, including how they interact with and make decisions affecting human resources.
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human resource management
A marketing manager at IDEO, the Palo Alto-based design firm, once said: “If you hire the right people … if you've got the right fit … then everything will take care of itself.”4 It really isn't quite that simple, but getting the right people on board is certainly a great starting point for success. The process of human resource management (HRM) is supposed to do just that—attract, develop, and maintain a talented and energetic workforce. Its purpose is to ensure that an organization is always staffed with the best people so that all jobs get done in the best possible ways. You might think of the goal of HRM this way—to build organizational performance capacity through people.
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The three major responsibilities of human resource management are typically described as follows.
1. Attracting a quality workforce—focus on employee recruitment and selection 2. Developing a quality workforce—focus on employee orientation, training and development, and performance management 3. Maintaining a quality workforce—focus career development, work-life balance, compensation and benefits, retention and turnover, and labor-management relations
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leadership
leadership, the process of inspiring others to work hard to accomplish important tasks, is one of the most popular management topics.1 Consultant and author Tom Peters says that the leader is “rarely—possibly never—the best performer.”2 They don't have to be; leaders thrive through and by the successes of others. But not all managers live up to these expectations. Warren Bennis, a respected scholar and consultant, claims that too many U.S. corporations are “over-managed and under-led.” Grace Hopper, the first female admiral in the U.S. Navy, advised that “you manage things; you lead people.”3 The bottom line is that leaders become great by bringing out the best in people.
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four functions of management
Leadership is one of the four functions that make up the management process shown in Figure 11.1. Planning sets the direction and objectives; organizing brings together the resources to turn plans into action; leading builds the commitment and enthusiasm that allow people to apply their talents to help accomplish plans; and controlling makes sure things turn out right. w0130
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Why Is Leading So Important in the Management Process?
Leading is one of the four management functions. It is the process of inspiring others to work hard to accomplish important tasks. Managers who are effective leaders act in ways that create high levels of enthusiasm among people to use their talents fully to accomplish tasks and pursue important plans and goals.
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power
Power is the ability to get someone else to do something you want done, the ability to make things happen the way you want them to. Isn't that a large part of management, being able to influence other people? So, where and how do managers get power? Most often we talk about two sources of managerial power that you might remember by this equation6:
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what is managerial power
managerial power = position power + personal power
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reward power
reward power is the capability to offer something of value as a means of achieving influence. To use reward power, a manager says, in effect: “If you do what I ask, I'll give you a reward.” Common rewards are things like pay raises, bonuses, promotions, special assignments, and compliments. As you might expect, reward power can work well as long as people want the reward and the manager or leader makes it continuously available. But take the value of the reward or the reward itself away, and that power is quickly lost.
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coercive power
Coercive power is the capability to punish or withhold positive outcomes as a way of influencing others. To mobilize coercive power, a manager is really saying: “If you don't do what I want, I'll punish you.” Managers have access to lots of possible punishments, including reprimands, pay penalties, bad job assignments, and even termination. But how do you feel when on the receiving end of such threats? If you're like me, you'll most likely resent both the threat and the person making it. You might act as requested or at least go through the motions, but you're unlikely to continue doing so once the threat no longer exists.
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legitimate power
Legitimate power is the capacity to influence through formal authority. It is the right of the manager, or person in charge, to exercise control over persons in subordinate positions. To use legitimate power, a manager is basically saying: “I am the boss; therefore, you are supposed to do as I ask.” When an instructor assigns homework, exams, and group projects, don't you most often do what is requested? Why? You do it because the requests seem legitimate to the course. But if the instructor moves outside course boundaries, perhaps asking you to attend a sports event, the legitimacy is lost, and your compliance is less likely.
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expert power
As shown in the small figure, expert power is the ability to influence the behavior of others because of special knowledge and skills. When a manager uses expert power, the implied message is: “You should do what I want because of my special expertise or information.”
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referent power
Referent power is the ability to influence the behavior of others because they admire and want to identify positively with you. When a manager uses referent power, the implied message is: “You should do what I want in order to maintain a positive self-defined relationship with me.”
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vision
vision—a future that one hopes to create or achieve in order to improve on the present state of affairs. According to the late John Wooden, a standout men's basketball coach at UCLA for 27 years: “Effective leadership means having a lot of people working toward a common goal. And when you have that with no one caring who gets the credit, you're going to accomplish a lot.”9
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visionary leadership
he term visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future, as well as an understanding of the actions needed to get there successfully.10 But simply having the vision of a desirable future is not enough. Truly great leaders are extraordinarily good at turning their visions into accomplishments. This means being good at communicating the vision and getting people motivated and inspired to pursue the vision in their daily work. You can think of it this way. Visionary leadership brings meaning to people's work; it makes what they do seem worthy and valuable.
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Traits Often Shared by Effective Leaders
Drive —Successful leaders have high energy, display initiative, and are tenacious. Self-confidence —Successful leaders trust themselves and have confidence in their abilities. Creativity —Successful leaders are creative and original in their thinking. Cognitive ability —Successful leaders have the intelligence to integrate and interpret information. Business knowledge —Successful leaders know their industry and its technical foundations. Motivation —Successful leaders enjoy influencing others to achieve shared goals. Flexibility —Successful leaders adapt to fit the needs of followers and the demands of situations. Honesty and integrity —Successful leaders are trustworthy; they are honest, predictable, and dependable.
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What Are the Classic Leadership Styles?
It is common to describe leaders in terms of how their day-to-day styles show concern for people and concern for task. In this figure the leader low in concern for both people and task is described as “laissez-faire” and is very ineffective. The leader high in concern for task but low in concern for people is “autocratic” and focused on performance. The leader high in concern for people and low in concern for task has a “human relations” style that focuses mainly on people and relationships. The “democratic” leader is high in concern for both people and task. This person is often highly successful as a true team manager who is able to engage people to accomplish common goals.
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autocratic leader
autocratic leader. This manager focuses on authority and obedience, delegates little, keeps information to himself or herself, and tends to act in a unilateral command-and-control fashion. Have you ever worked for someone fitting this description? How would you score his or her leadership effectiveness?
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human relations leader
A leader who emphasizes people over task is often referred to as a human relations leader. This leader is interpersonally engaging, cares about others, is sensitive to feelings and emotions, and tends to act in ways that emphasize harmony and good working relationships.
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democratic leader
ometimes called a democratic leader, a manager with this style shares decisions with followers, encourages participation, and supports the teamwork needed for high levels of task accomplishment.
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laissez faire leader
What leadership training would be best for you? Hopefully you're not starting out as an “impoverished” manager with a laissez-faire leader, low on both task and people concerns.
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contingency leadership perspective
This finding led scholars to explore a contingency leadership perspective, one that recognizes that what is successful as a leadership style varies according to the nature of the situation and people involved.
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What Are the Best Matches of Leadership Style and Situation According to Fiedler's Contingency Model?
Fiedler believes that leadership success requires the right style-situation match. He classifies leadership styles as either task motivated or relationship motivated and views them as strongly rooted in our individual personalities. He describes situations according to the leader's position power, quality of leader-member relations, and amount of task structure. In situations that are most favorable and unfavorable for leaders, his research shows the task-motivated style as the best fit. In more intermediate situations, the relationship-motivated style provides the best fit.
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he possible combinations of task and relationship behaviors result in four leadership styles.
• Delegating—allowing the group to take responsibility for task decisions; a low-task, low-relationship style • Participating—emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style • Selling—explaining task directions in a supportive and persuasive way; a high-task, high-relationship style • Telling—giving specific task directions and closely supervising work; a high-task, low-relationship style
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What Are the Leadership Implications of the Hersey-Blanchard Situational Leadership Model?
The Hersey-Blanchard situational leadership model suggests that successful leaders adjust their styles based on the maturity of followers or how willing and able they are to perform in a given situation. The four style-follower matches are delegating style for able and willing followers, participating style for able but unwilling followers, selling style for unable but willing followers, and telling style for unable and unwilling followers.
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Four Leadership Styles in House's Path-Goal Theory
1. Directive leader—lets others know what is expected; gives directions, maintains standards 2. Supportive leader—makes work more pleasant; treats others as equals, acts friendly, shows concern 3. Achievement-oriented leader—sets challenging goals; expects high performance, shows confidence 4. Participative leader—involves others in decision making; asks for and uses suggestions
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directive leadership
hen job assignments are unclear, directive leadership helps to clarify task objectives and expected rewards.
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supportive leadership
supportive leadership can increase confidence by emphasizing individual abilities and offering needed assistance.
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achievement oriented leadership
When task challenge is insufficient in a job, achievement-oriented leadership helps to set goals and raise performance aspirations. When performance incentives are poor, participative leadership might clarify individual needs and identify appropriate rewards.
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substitutes for leadership
This contingency thinking has contributed to the recognition of what are called substitutes for leadership.21 These are aspects of the work setting and the people involved that can reduce the need for a leader's personal involvement. In effect, they make leadership from the “outside” unnecessary because leadership is already provided from within the situation.
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leader member exchange theory
One of the things you may have noticed in your work and study groups is the tendency of leaders to develop “special” relationships with some team members. This notion is central to leader-member exchange theory, or LMX theory, as it is often called
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vroom jago
The Vroom-Jago leader-participation model views a manager as having three decision options, and in true contingency fashion, no one option is always superior to the others.25 (authority, group, consultative)
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rules for making choice
The rules for making the choice involve three criteria: (1) decision quality—based on who has the information needed for problem solving; (2) decision acceptance—based on the importance of follower acceptance of the decision to its eventual implementation; and (3) decision time—based on the time available to make and implement the decision.
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What Are the Leadership Implications of the Vroom-Jago Leader-Participation Model?
The leader-participation model suggests that leaders are effective when they use the appropriate decision method to solve a problem situation. Three criteria govern the choice among possible authority, consultative, and team or group decisions: (1) decision quality—based on who has the information needed for problem solving; (2) decision acceptance—based on the importance of follower acceptance of the decision to its eventual implementation; and (3) decision time—based on the time available to make and implement the decision.
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When consultative and group decisions work best
• The leader lacks sufficient expertise and information to solve this problem alone. • The problem is unclear, and help is needed to clarify the situation. • Acceptance of the decision and commitment by others are necessary for implementation. • Adequate time is available to allow for true participation.
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charismatic leaders
charismatic leaders because of their ability to inspire others in exceptional ways. We used to think charisma was limited to only a few lucky persons. Today, it is considered one of several personal qualities—including honesty, credibility, and competence, that we should be able to develop with foresight and practice.
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transactional leadership
transactional leadership.32 You might picture the transactional leader engaging followers in a somewhat mechanical fashion, “transacting” with them by using power, employing behaviors and styles that seem to be the best choices at the moment for getting things done.
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transformational leadership
transformational leadership.33 Transformational leaders use their personalities to inspire followers and get them so highly excited about their jobs and organizational goals that they strive for truly extraordinary performance accomplishments. Indeed, the easiest way to spot a truly transformational leader is through his or her followers. They are likely to be enthusiastic about the leader and loyal and devoted to his or her ideas and to work exceptionally hard together to support them.
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characteristics of transformational leaders
Vision —has ideas and a clear sense of direction; communicates them to others; develops excitement about accomplishing shared “dreams” • Charisma —uses the power of personal reference and emotion to arouse others' enthusiasm, faith, loyalty, pride, and trust in themselves • Symbolism —identifies “heroes,” and holds spontaneous and planned ceremonies to celebrate excellence and high achievement • Empowerment —helps others grow and develop by removing performance obstacles, sharing responsibilities, and delegating truly challenging work • Intellectual stimulation —gains the involvement of others by creating awareness of problems and stirring their imaginations • Integrity —is honest and credible; acts consistently and out of personal conviction; follows through on commitments
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emotional intelligence
emotional intelligence. Popularized by the work of Daniel Goleman, emotional intelligence, or EI for short, is an ability to understand emotions in yourself and others and use this understanding to handle one's social relationships effectively.35 “Great leaders move us,” say Goleman and his colleagues. “Great leadership works through emotions.”3
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emotional intelligence quotient
Emotional intelligence is an important influence on leadership success, especially in more senior management positions. In Goleman's words: “The higher the rank of the person considered to be a star performer, the more emotional intelligence capabilities showed up as the reason for his or her effectiveness.”37 This is a pretty strong endorsement for making EI one of your leadership assets.38 In fact, you'll increasingly hear the term EQ, or emotional intelligence quotient, used in this regard as more employers start to actually measure it as a part of their recruitment screening.
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emotional intelligence competencies
Self-awareness is the ability to understand our own moods and emotions and to understand their impact on our work and on others. Social awareness is the ability to empathize, to understand the emotions of others, and to use this understanding to better deal with them. Self-management, or self-regulation, is the ability to think before acting and to be in control of otherwise disruptive impulses. Relationship management is the ability to establish rapport with others in ways that build good relationships and influence their emotions in positive ways.
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gender similarities hypothesis
gender similarities hypothesis that males and females are very similar to one another in terms of psychological properties.40 Second, research leaves no doubt that both women and men can be effective leaders.41 Third, research shows that men and women are sometimes perceived as using different leadership styles, perhaps arriving at success from different angles
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interactive leadership
The pattern of behaviors associated with female leaders has been called interactive leadership.46 Interactive leaders are democratic, participative, and inclusive, often approaching problems and decisions through teamwork.47 They focus on building consensus and good interpersonal relations through emotional intelligence, communication, and involvement. They tend to get things done with personal power, seeking influence over others through support and interpersonal relationships.
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moral leadership
As discussed many times in this book, society expects organizations to be run with moral leadership. This is leadership by ethical standards that clearly meet the test of being “good” and “correct.”52 We should expect anyone in a leadership position to practice high ethical standards of behavior and help others to also behave ethically in their work. But the facts don't always support this aspiration.
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integrity
ut how and where do we start when facing up to the challenge of building personal capacities for ethical leadership? A good answer is to focus on integrity.57 You must start with honest, credible, and consistent behavior that puts your values into action.
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moral overconfidence
“The world isn't neatly divided into good people and bad people.59 And, one of the risks we face in living up to the expectations of moral leadership is moral overconfidence. This occurs as an overly positive view of one's integrity and strength of character.60 It may cause a leader to act unethically without recognizing it or while justifying it by inappropriate rationalizations. “I'm a good person, so I can't be wrong on this,” a leader might say with moral overconfidence.
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servant leadership
A classic observation about great leaders is that they view leadership as a responsibility, not a rank.61 This is consistent with the notion of servant leadership. It means serving others and helping them use their talents to the fullest so that the organization benefits society.
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empowerment
and creates empowerment by giving people job freedom and opportunities to influence what happens in the organization