Chapter 11

Change and Innovation

 Organizational Change

Theadoptionofanewideaorbehaviorbyan
organization

Changeisnoteasy,organizationsmusttakean
ambidextrousapproach

Managersencourageflexibilityandfreedomto
innovate

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 Changing Things: New Products
and Technologies

ProductChange achangeinthe
organizationsproductorserviceoutputs

TechnologyChange achangeinthe
organizationsproductionprocess

Threeinnovationstrategies:exploration,
cooperation,andentrepreneurship
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11.1 Three Innovation Strategies

4
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11.3 The Worlds Most Innovative
Companies

5
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 11.4 Coordination Model for
Innovation

6
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 Entrepreneurship

Managersshouldsupportentrepreneurship
activitiesandfosterideachampions
Energyandeffortisrequiredtopromoteanewidea
Sponsors approveandprotectideaswhencritics
challengetheconcept
Newventureteamsgivefreereintocreativity
Newventurefundsprovideresourcesfornewideas
Skunkworks areinformal,autonomous,secretive
groupsthatfocusonbreakthroughideas
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11.5 Four Roles in Organizational
Change

8
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 Changing People and Culture

Changesinhowemployeesthink
Changesinmindset

Peoplechange=TrainingandDevelopment
Culturechange=OrganizationalDevelopment

Largeculturechangeisnoteasy

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 Organizational Development

Planned,systematicprocessofchangeusing
behavioralscience
Addressesthreetypesofproblems:
n Mergersandacquisitions
Y Organizationaldeclineandrevitalization
Z Conflictmanagement

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 Implementing Change

OutlinetheNeedforChange
Showtheperformancegap
UnderstandtheResistancetoChange
SelfInterest
LackofUnderstandingandTrust
Uncertainty
DifferentAssessmentsandGoals

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 11.7 Force-Field Analysis

Drivingforces problemsoropportunitiesthat
providemotivationforchange
Restrainingforces barrierstochange

12
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11.8 Tactics for Overcoming
Resistance to Change

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 Chapter 12
Human Resource Management
 The Strategic Role of HRM

HRmustdriveorganizationalperformance;itsthe
competitiveedge
Matchingprocess
Integratestrategy
HRbuildsculture
Therightpeople:
9 Tobecomemorecompetitiveonaglobalbasis
9 Forimprovingquality,innovation,andcustomerservice
9 Toretainduringmergersandacquisitions
9 Toapplynewinformationtechnologyforebusiness
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12.1 Strategic Human Resource
Management

16
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Building Human Capital to Drive
Performance

Strategicdecisionsarerelatedtohuman
decisions
Morecompaniesrelyoninformation,
creativity,andknowledge

HumanCapitalistheeconomicvalueofthe
combinedknowledge,experience,skills,and
capabilitiesofemployees
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12.2 The Role and Value of Human
Capital Investments

18
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 Innovations in HRM

BecominganEmployerofChoice
Organizationsthatarehighlyattractiveto
potentialemployeesbecauseofHRpractices

UsingTemporaryandPartTimeEmployees
Contingentworkersarenotpermanent,
maintainflexibility,andkeepcostslow

PromotingWork/LifeBalance
Criticalretentionstrategies
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 Promoting Work-Life Balance

9 Helpingworkersleadabalancedlife
9 Parttimeworkandtelecommuting
9 Flexiblescheduling
9 GenY/Millennialsdemandmoreworklife
balance

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 Finding the Right People

Usingthematchingmodel,theorganizationand
theindividualattempttomatchtheneeds,
interests,andvaluesthattheyoffereachother

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 12.5 Attracting an Effective
Workforce

22
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Recruiting (talent acquisition)
AssessingOrganizationalNeeds:
JobAnalysis
JobDescription
JobSpecification
RealisticJobPreviews providepertinent
information;positiveandnegative
LegalConsiderations recruitingpracticesmust
belegal
InnovationsinRecruiting:
eRecruiting
Twitter,LinkedIn,andothersocialmedia
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12.8 Employment Applications and
Interviews: What Can You Ask?

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12.9 Interview Brain Teasers

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 Managing Talent

TrainingandDevelopment
OntheJobTraining
CorporateUniversities
PromotionfromWithin
MentoringandCoaching
Development involvesteaching
broaderskills
PerformanceAppraisal
Evaluatingperformance,recording
assessment,andprovidingfeedback
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12.10 Methods and Goals of
Training

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 Performance Appraisal

AssessingPerformanceAccurately system
shouldevaluaterelevantperformance
Performancereviewrankingsystemspitemployees
againsteachother

360degreeFeedback usesmultipleraters,
includingselfratingtoappraiseemployeesand
development

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 Performance Evaluation Errors

Stereotyping placinganemployeeintoa
classorcategorybasedonafew
characteristics

BehaviorallyAnchoredRatingScales(BARS)
ratingtechniquethatrelatesanemployees
performancetospecificjobrelatedincidents

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 29
12.11 Example of a Behaviorally
Anchored Rating Scale

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 Compensation

Compensation allmonetarypaymentsandall
goodsorcommoditiesusedtorewardemployees
WageandSalarySystems
Jobbasedpay
Skillbasedpay
Competencybasedpay
CompensationEquity fairnessandequity
PayforPerformance raiseproductivityandcut
laborcostsincompetitiveenvironment
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 Benefits

Socialsecurity,unemploymentcompensation,
andworkers compensationarerequiredbylaw

Cafeteriaplanbenefitspackagesallow
employeestoselectbenefitsforthemselves

Benefitshavebeencutduetotherecession

Companiesaredroppingemployersponsored
coverageduetothenewhealthcarelaw

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 Rightsizing the Organization

Reducingthecompanysworkforcetotheright
size;alsocalleddownsizing

Makecompanystrongerandmorecompetitive

HRmusteffectivelyandhumanelymanagethe
process

Manyorganizationsusecommunicationand
provideassistancetoaddressemotionalneeds

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Chapter 15
Leadership
 The Nature of Leadership

Manystylesofleadershipcanbeeffective
People,influence,andgoals
Reciprocal,occurringamongpeople
Apeople activity,differentthan
administrationandproblemsolving
Leadershipistheabilitytoinfluencepeople
towardtheattainmentofgoals

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 Contemporary Leadership

Leadershipevolvesastheneedsoftheorganization
change
Leadershiphasevolvedwithtechnology,economic,
labor,social,andculturalchanges
Respondingtotheturbulenceanduncertaintyofthe
environment
Fourapproachesfortodaysturbulenttimes:
Level5Leadership
ServantLeadership
AuthenticLeadership
InteractiveLeadership(genderdifferences)
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 Level-Five Leadership

Levelfiveleadershipreferstothehighestlevel
inahierarchyofmanagercapabilities
Lackofego(humility)
Shyandselfeffacing
Fierceresolvetodowhatisbestfor
organization
Creditotherpeople

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15.1 Level-Five Hierarchy

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 38
 Servant Leadership

Workexistsforthedevelopment
oftheworker

Servantleaderstranscendself
interesttoserveothers

Servantleadersgiveawaypower,
ideas,information,recognition,
credit,andmoney

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 39
 Authentic Leadership

9 Leaderswhoknowandunderstandthemselves
9 Inspiretrustandcommitment
9 Stayingtruetoonesvaluesandbeliefs
9 Respectdiverseviewpoints
9 Espouseandactwithhigherorderethicalvalues
9 Encouragecollaboration
9 Helpotherslearn,grow,anddevelopasleaders
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15.2 Components of Authentic
Leadership

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 Interactive Leadership

9Derivedfromstudiesoffemaleleaders
(genderdifferences)
9ConsistentwithLevel5leadership
9Consensualandcollaborative
9Influencederivedfromrelationships

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 15.3 Gender Differences in
Leadership Behaviors

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 43
 Leadership Traits

Earlyresearchonleadershipfocusedon
traits
GreatManApproachtoleadership

Traitsarereemergingasaleadership
interest
Combinetraitresearchwithother
leadershipideas
Effectiveleaderspossessvariedtraits
andcombinethesewiththeirstrengths
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15.5 Personal Characteristics
of Leaders

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 45
 Situational Theory of Leadership

Extensionofbehavioraltheories

Focusoncharacteristicsoffollowers
Seekappropriateleadershipbehavior

Leadershipisbasedonrelationshipwith
followersandreadinessleveloffollowers

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15.7 The Situational Model of
Leadership

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 47
 Charismatic and Visionary
Leadership

Charismaticleadersareskilledintheartof
visionaryleadership
Visionisanattractiveidealfuture
Inspireandmotivatepeopletodomore
Aloftyvision
Abilitytounderstandandempathize
Empoweringandtrustingsubordinates
Visionaryleadersspeaktotheheartsof
employeestobeapartofsomethingbig
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 Transformational versus
Transactional Leadership

Transactional Transformational
Clarifytasks Innovative
Initiatestructure Recognizefollower
Provideawards needs
Improveproductivity Inspirefollowers
Hardworking Createabetterfuture
Tolerant&fairminded Promotesignificant
Focusonmanagement change

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 Followership

Organizationdoesnotexistwithout
followers
Understandfollowers:criticalthinking
versusdependentuncriticalthinking
Alienatedfollower
Conformist
Pragmaticsurvivor
Passivefollower
Effectivefollower
Isthefolloweractiveorpassive?
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15.10 Styles of Followership

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 Power and Influence

PositionPower
LegitimatePower
RewardPower Bothleaders
CoercivePower andfollowers
PersonalPower usepowerto
ExpertPower getthings
ReferentPower done
OtherSourcesofPower
PersonalEffort
NetworkofRelationships
Information
Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 52
 15.11 Seven Interpersonal
Influence Tactics for Leaders

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 53
Chapter 16
Motivation
 The Concept of Motivation

Motivation thearousal,direction,and
persistenceofbehavior
Forceseitherintrinsicorextrinsic toaperson
thatarouseenthusiasmandpersistence
Employeemotivationaffectsproductivity
Amanagersjobistochannelmotivationtoward
theaccomplishmentofgoals

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16.1 A Simple Model of Motivation

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 Content Perspectives
on Motivation

Ifmanagersunderstandemployees needs,they
candesignappropriaterewardsystems
Needsmotivatepeople
Needstranslateintoaninternaldrivethatmotivates
behavior
Peoplehaveavarietyofneeds

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16.2 Maslows Hierarchy of Needs

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 ERG Theory

Existenceneeds theneedsforphysical
wellbeing
Relatednessneeds theneedsfor
satisfactoryrelationshipswithothers
Growthneeds theneedsthatfocusonthe
developmentofhumanpotentialandthe
desireforpersonalgrowth
frustrationregressionprinciple:failuretomeetahighorderneedmay
causearegressiontoanalreadysatisfiedlowerorderneed

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16.4 Herzbergs Two-Factor Theory

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 Acquired Needs

9 Needforachievement
9 Needforaffiliation
9 Needforpower

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 Process Perspectives
on Motivation

Howpeopleselectbehavioralactions
GoalSettingTheory
EquityTheory
ExpectancyTheory

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 Goal Setting Theory

Increasemotivationbysettinggoals
Keycomponentsofthetheory:
Goalspecificity
Goaldifficulty
Goalacceptance
Feedback

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 63
Equity Theory

Individualperceptionsoffairness
Perceivedinequitycanbereducedby:
Changingworkeffort
Changingoutcomes
Changingperception
Leavingthejob
Inequityoccurswhentheinputtooutcome
ratiosareoutofbalance
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Expectancy Theory

Motivationdependsonindividuals
expectationsabouttheirabilitytoperform
tasksandreceivedesiredrewards
E P:puttingeffortintoagiventaskwilllead
tohighperformance
P O:successfulperformanceofataskwill
leadtothedesiredoutcome
Valence thevalueorattractionanindividual
hasforanoutcome
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 16.5 Major Elements of
Expectancy Theory

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 66
 Reinforcement Perspective
on Motivation

BehaviorModification Reinforcement
Reinforcementtheory Anactthatcausesa
techniquesusedto behaviortobe
modifybehavior repeatedorinhibited

Positive
LawofEffect
Reinforcement
Positivelyreinforced
Pleasantand
behaviortendstobe
rewarding
repeatedand
consequences
unreinforcedbehavior
followingadesired
inhibited
behavior
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 16.6 Changing Behavior
with Reinforcement

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 Social Learning Theory

Individualsmotivationcanresultfromthoughts,
beliefs,andobservations
Vicariouslearning observationallearningfrom
seeingothers behaviorsandrewards

Selfreinforcement motivatingyourselfbyreaching
goalsandprovidingpositivereinforcementforyourself

Selfefficacy beliefaboutyourownabilityto
accomplishtasks

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 Job Design for Motivation

9 JobSimplification
9 JobRotation
9 JobEnlargement
9 JobEnrichment

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16.7 The Job Characteristics Model

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 Core Job Dimensions

Dimensionsthatdeterminea
jobsmotivationalpotential:
Basedon:

n Skillvariety CriticalPsychological
States
Y Taskidentity PersonalandWork
Z Tasksignificance Outcomes
EmployeeGrowthNeed
[ Autonomy Strength
\ Feedback

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 Chapter 19
Quality and Performance
 Controlling

Managersuseavarietyofmeasurestomonitor
performance:
Controllingworkprocesses
Regulatingemployeebehavior
Systemsforfinancialresources
Evaluatingprofitability

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 The Meaning of Control

Organizationalcontrolisthesystematicprocess
throughwhichmanagersregulateorganizational
activitiestomakethemconsistentwith
expectationsestablishedinplans,targets,and
standardsofperformance

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 Choosing Standards and
Measures
Commonmeasuresandcontrols:
Sales
Revenue
Profit
Morefocusonmeasuringintangibles
Customerservice
Increasedrevenue

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 The Balanced Scorecard

9 Balancedperspectiveofcompanyperformance
9 Integratesvariousareasoftheorganization
9 Managersrecord,analyze,anddiscussthe
metrics
9 Servesascoremanagementcontrolsystem

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19.1 The Balanced Scorecard

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19.2 Feedback Control Model

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 Steps of Feedback Control

X EstablishStandardsofPerformance

Y MeasureActualPerformance

Z ComparePerformancetoStandards
[ TakeCorrectiveAction

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 Open-Book Management

9 Decentralizedphilosophy
9 Geteveryemployeethinkinglikeanowner
9 Informationsharingandteamwork
9 Allowsemployeestoseethefinancialcondition
ofcompany
9 Seehowhis/herjobfitsintoorganizational
success

Copyright2012bySouthWestern,adivisionofCengageLearning.Allrightsreserved. 81
 Total Quality Management (TQM)

Infusequalityintoeveryaspectofthebusiness,
alldaytodayactivities
BecamepopularintheU.S.inthe1980s
Focuseson:
Teamwork
Collaboration
Identifyingimprovements
ThegoalofTQMiszerodefects

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 TQM Techniques

9 QualityCircles

9 Benchmarking

9 SixSigma

9 ReducedCycleTime

9 ContinuousImprovement

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19.8 The Importance of Quality
Improvement Programs

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 19.9 Quality Program
Success Factors

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 International Quality Standards

ISO9000standards InternationalOrganization
forStandardization
Organizationcertification
157Countries
Organizationsdemonstrateacommitmentto
quality
EuropeleadsincertificationsbuttheUnited
Stateshashadlargeincreases

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