An Introduction To Management

An Introduction to Management
An Introduction to Management
Managing and the Managers Job
Traditional and Contemporary Issues and

Challenges

CEO
CEO
Philip Knight CEONike
Carly Fiorina CEOHP
Mikio Sasaki President Mitsubishi
Sir David Wilson Director British Museam
George W Bush President USA
John Pope II Pope Ruman Catholic Charch
Howard Schultz CEOStarbuck

Opening Incident
Opening Incident
Marriot International Hotel Chain
CEO: J.W.(Bill) Marriot
911
Half million rooms, under construction 60000 rooms,

franchiser
Suffered more than Hilton and Starwood (Sheraton,

Westin) because urban based
Flexibility in SOP, soothe worried franchisers,

reduce overhead by 20%, Car, Joint venture Bulgari
branded resorts.

Goals
Goals
Profit Starbucks Corp
Discovery of Knowledge University
National Defense Army
Coordination of local charities United way of America
Social Satisfaction Sorority

Organization
Organization
A group of people working together in a structured

and coordinated fashion to achieve a set of goals.
Efficient: Using resources wisely and cost-effective

way.
Effective: Making the right decision and successfully

implement it.
Manger: Someone whose primary responsibility is to

carry out the management process.

The Management Process
Kinds of Managers
Basic Managerial Roles and Skills
The Nature of Managerial work
The New Workplace

Planning and Decision making
Organizing
Leading
Controlling

Planning and Decision Making
Planning and Decision Making
Planning: Setting an organizations goal and

deciding how best to achieve them.
Decision making: Part of planning process

that involves selecting a course of action from
a set of alternatives.
Example: Carly Fiorina of HP in 1999,

McDonald,s effort of expansion.

Organizing
Organizing
Coordinating activities and Resources
Coordinating activities and Resources
Organizing: Determining how activities and

resources are to be grouped.
Example: Carly Fiorina of HP

Leading
Leading
Motivating and managing people
Motivating and managing people
Leading: The set of processes used to get

members of the organization to get together to
further the interests of the organization.
Example: Carly Fiorina of HP

Controlling
Controlling
Monitoring and evaluating activites
Monitoring and evaluating activites
Controlling: Monitoring organizational

progress toward goal attainment.
Example: Nasa with rocket, Fiorina in HP by

benchmarking for technology, accountable for
profitability and competitiveness

Kinds of Managers
Kinds of Managers
On Levels
Top managers
Middle managers
First-line mangers

Kinds of Managers
Kinds of Managers
On area
Marketing
Financial
Operation
HR
Administrative
Other: Public relation, R&D, Internal consultant,
international

Top managers
Top managers
Designation: president, Vice President, CEO
Function: Create the organizational goals, overall

strategy, and operating policies. Officially represent
the company to external environment by meeting
and so forth.
Time involvement: much in meeting and in

telephone.
Salary: Well paid
Example: Howard Schultz of Starbucks

Middle Managers
Middle Managers
Largest group
Common titles: Plant mangers, operation managers

and division head
Functions: Implementing policies and plans

developed by top mangers, supervise and coordinate
activities of lower level managers. Inventory control,
quality control, equipment failureand minor union
problems.
Recent development: Thin the rank of middle

managers to lower cost and eliminate excess
bureaucracy.

First line mangers
First line mangers
Responsibility: supervise and coordinate the

activities of operating employees
Common titles: Supervisor, coordinators and

office managers.
Time spending: on supervising.
Promotion from: Operating personnel.

Marketing Managers
Marketing Managers
Marketing function- Getting consumers and

clients to buy the organizations products or
services.
Area: New product development, promotion

and distribution.
Example: Carly Fiorina

Financial managers
Financial managers
Dealings: Deal with finacial resources.
Responsibity: Accounting, cash management

and onvestments
Large numbers in banking and insurance.
Stanley ONeil of Merril Lunch

Operation managers
Operation managers
Main task : Creating and managing the

system that create product and services.
Responsibilities: Production control, Inventory

control, quality control, plant layout and
location etc.

Other areas
Other areas
HR Mangers: Hiring and developing employees
Administrative managers: Generalists. Clinics and

hospital administrator.
Public relation manager: Philip Morris Company, The

Dow Chemical company
R&D managers: Monsanto, NASA< Merck and

company.
Internal consultants: Prudential Insurance
International Managers: Eli Lilly and Rockwell

Managrial Roles
Managrial Roles
Ten basic Roles : Henry Mintzberg
Ten basic Roles : Henry Mintzberg
Category
Interpersonal
Informational
Decisional
Role
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance handler
Resource allocator
Negotiator

Interpersonal
Interpersonal
Figurehead
Leader
Liaison
Attending ribon-cutting
ceremony of new plant
Encouraging employees
to improve productivity
Coordinating activities
of two project group.
Microsoft and HP

Informational
Informational
Monitor
Disseminator
Spokesperson
Scanning industry
report to say abreast of
development.
Sending memos
outlining new
organizational
initiatives.
Making a speech to
discuss growth plans

Decisional Role
Decisional Role
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
Developing new ideas for

innovation
Resolving conflicts between

two subordinates
Reviewing and revising

budget requests
Reaching agreement with

key supplier or labor union

Managerial Skill
Managerial Skill
Technical Skill: Horst Schulze, CEO of Ritz-Carlton
Interpersonal skill: A.G. Lafley of P&G
Conceptual skill: big picture
Diagnostic skill: Howard Schultz at starbucks
Communication skill:
Decision Making skill
Time management skill: Jeff Bezos, CEO,

amazon.com

The nature of Managerial Work
The nature of Managerial Work
Fought with uncertainty, change, interruption

and fragmented activities.
Mintzbergs study: 59% time on scheduled

meeting, 22% desk work, 10% Unscheduled
meeting, 6% telephone, 3% company
facilities.
Continue to change in complex and

unpredictable manner.

The Science and the Art of
The Science and the Art of
Management
Management
The Science of Management
The Art of Management
Example: Starbucks- drip coffee, expresso-

style
Blend of intuition and personal insight with

hard data and objective facts

Becoming a Manager
Becoming a Manager
The Role of Education: McDonald and Shell

Oil
The Role of Experience: training in P&G,

General Mills and Shell Oil
Effective : Combination of education and

learning

The Scope of Management
The Scope of Management
Managing in Profit-Seeking Organization
Managing in Not-for-Profit Organization

Managing in Profit-Seeking
Managing in Profit-Seeking
Organization
Organization
Large: BP, Toyata, Xerox, Unilever, Levi Struss,
Commercial bank: Citicorp, Fuji Bank, Wells fargo
Insurance: Predential, State Firm, Metropoliton Life
Retilers: Sears, Safeway, Target
Transportation: Delta air lines, Consolidated Frightways
Utilities: Pacific Gas and Electric, consolidated Edision of NY
Communication: CBS, The New York Times
Service : kelly Services, Kindercare Learning Center
Small firm
Small to big: Dell Computer Michael Dell in 84
International Management: Exxonmonil-75%, CocaCola-80%
Headquarters in other countries: Royal Dutch/Shell Group (The Netherland),
Fiat S.p.A.(Italy), Nestle S.A. (Swtzerland), Masssy Fergusion (Canada).
not-for profit: sports federation, branches, federal government< Roman
Catholic Chruch

Managing in Not-for-Profit
Managing in Not-for-Profit
Organization
Organization
Intangible goal: education, social service, public

protection, recreation
Example: United Way of America, The U.S. Postal

Service, Girl Scout of USA, International Olympic
Committee, Art Gallery, museams, Public
Broadcasting System
School and Universities
Health care facilities
Religious organization, terrorist, fraternities and

sororities, organized crime, street gang,
neighbourhood association and households

The New Workplace
The New Workplace
Accompanied by dramatic challenges and amazing opportunities.
Challenges
Diversity: McDonnalds, Apple
Women: Outside 33%in 1950 to 67%, occupations
Ethnic composition :Hispanics and African American, immigrants,
refugees
EEO: disables
Aside from Demographic composition: yuppies, Generation X-ers
Challege: first: attractive environment, second-motivate by incentives,
finally- flexbility
Organizational Change
Information Technology
Complex array of new ways of Organizing: Flat structure

Closing case
Closing case
Southwest airlines
200,000 for 6000 jobs
Retiring CEO- Herb Kellener in 2001
New CEO- Jim Parker, Collen Barrett- COO
Low cost, less expensive, Boeing 737
HR- unionized, no strike, extensive training, no lay-off, pay

hikes when other reducing
911- laid-off 100,000
Analysis reduce expense 29%
Compete with imitator, Customer service business

Traditional and Contemporary Issues
Traditional and Contemporary Issues
and Challenges
and Challenges
The Role of Theory and History in

Management
The Classical Management Perspective
The behavioral management Perspective
The Quantitative Management Perspective
Integrating Perspectives for Managers
Contemporary Management Issues and

challeges.

Management
Management
The Importance of Theory and History
Why Theory?
Why History?

Precursors to Management Theory
Precursors to Management Theory
Management in Antiquity
Early Management Pioneers: Robert Owen
Charles Babbage

The Classical Management
Perspective
Perspective
Scientific Management
Administrative Management

Frederick W. Taylor
Frank Gilbreth
Lillian Gilbreth
Henry Gantt
Harington Emerson

Henry Feyol French Industrialist
Lyndall Urwick British army officer, Mgt.

Consultant & Theorist
Max Weber: German Sociologist
Chester Barnard : President, New Jersey Bell

telephone company

Perspective Today
Perspective Today
Summary: Two primary trusts: Scientific

Management--- focused on employees within
the organization and ways to improve their
productivity.
Pioneers:
Administrative Management: on the total
organization and ways to make it more
efficient and effective.
Pioneers:

Perspective Today
Perspective Today
Contribution: laid the foundation for

development
Identified important management processes,

functions and skills
Management as a valid subject of scientific

inquiry.

The Classical Management Perspective Today
The Classical Management Perspective Today
Limitations
Limitations
More appropriate for stable and simple

organization.
Universal procedure not appropriate in all

settings.
Viewed employees as tools not resources

Behavioral Management Perspective
Behavioral Management Perspective
Emphasizes individual attitudes and behavior and group

processes.
Pioneers: Industrial psychology movement by father of

Industrial psychology, Hugo Munsterberg, noted German
Psychologist.
Establish Psychological laboratory at Harvard in 1892. Book:
Psychology and Industrial Efficiency.
Suggestion: psychologists could make valuable contribution in
employee selection and motivation
Mary Parker Follett : appreciated the need to understand the
role of behavior in organization.

The Hawthrone Studies
The Hawthrone Studies
Done by: Elton Mayo, a Harvard consultant and his

associates.
Place: Hawthrone plant of Western Electric near

Chicago.
Focus: a series of experiments on behavior in

workplace.
Experiments: In one experiment, researchers

monitored how productivity changed as a result of
change in working condition.
Conclusion: Human element is very important in the

workplace.

The Human Relation Movement
The Human Relation Movement
Workers respond primarily to the social context of

the workplace, including group norms, group
dynamics and interpersonal relationships.
Assumption: Managers concern for workers would

lead to increased satisfaction which result in
increased performance.
Contributors: Abraham Maslow and Douglas

McGregor.

Theory X and Theory Y
Theory X and Theory Y
Developed by : Douglas McGregor
Theme : Theory X a pessimistic and negative

view of workers and best represent the view
of Scientific Management
and theory Y- positive view of workers and

represent The Human relation Approach.
Theory Y is the best philosophy for all
managers.

Theory X
Theory X
People do not like work and try to avoid it.
People do not like work, so managers have to

control, direct, coerce, and threaten
employees to get them work toward
organizational goal.
People prefer to be directed. To avoid

responsibility, and to want security. They have
little ambition.

Theory Y
Theory Y
1. People do not naturally dislike; work is a natural

part of their lives.
2. People are internally motivate to reach objectives

to which they are committed.
People are committed to goals to the degree that

they receive personal rewards when they reach their
objectives.
People will both seek and accept responsibility under

favorable conditions.
People have the capacity to be innovative in solving

organizational problems.

The emergence of Organizational
The emergence of Organizational
Behavior
Behavior
Current behavioral perspective of

Management

The Quantitative Management
The Quantitative Management
Perspective
Perspective
Applies quantitative techniques to

management.
Two broad branches: Management Science

and Operations Management.
Management Science : Focuses specifically

on the development of mathematical models.
Operations Management: Form of applied

Management science.

The system perspective of
The system perspective of
Organization
Organization
By viewing organization as a system,

managers can better understand the
importance of their environment and the levels
of interdependence among subsystems within
the organization. Managers must also
understand how their decisions affect and are
affected by other subsystems within the
organization

The contingency Approach
The contingency Approach
Assumption: Proper management techniques in a

given situation depends upon the nature and
conditions of the situation.
Conclusion: The correct managerial behavior

depends on many variables and managers through
study and practice should develop wide range of
alternative management behavioral patterns and
should learn how and when to apply each one. There
is no one universal solution technique because every
problem is an unique one.

The Environmental Context of
The Environmental Context of
Management
Management
The Environment and culture of Organization
The Ethical and Social Environment
The Global Environment
The Multicultural Environment

The Environment and Culture of
The Environment and Culture of
Organization
Organization
The External Environment
The Internal Environment
The Organizations Culture
Organization-Environment Relationship
The Environment and Organizational

Effectiveness

Opening Incident
Opening Incident
Starbucks New store and Locals fear, Protest
Surprising- sales increases
Starbucks advantage- pricing, new product development and

other area, Size
Measures to reduce head-to-head competition- rental

barriers buyout-peek inside petition to ban
Starbuck-1997 -10003000, 7000-10000, sales double-15%
Competition-improvement, focus on local activities,

preference
Rivalry, industry dynamics

The General Environment: The set of broad

dimensions and forces in an organizations
surroundings that create its overall context.
The Task Environment: Specific organizations

or groups that influence an organization

The General Environment
The General Environment
Economic Dimension
Technological Dimension
Socio-cultural Dimension
Political-legal Dimension
International Dimension

Economic Dimension
Economic Dimension
Weak economic growth
Low unemployment
Low inflation

Improved information technology
More efficient operating systems

Demographic shifts in number of single adults

and dual income families
Growing concern about health and nutrition

Government food standards
Local Zoning climate
General posture toward business regulation

Restaurants in 115 countries
About two-third sales from outside USA

Task Environment
Task Environment
Competitors
Customers
Suppliers
Strategic Partners
Regulators

McDonalds Task Environment
Competitors
Burger King
Wendys
Subways
Dairy Queen

Customers
Individual Customers
Institutional Customers
Suppliers
Coca-Cola
Wholesale Food Processors
Packaging Manufacturers

Strategic Partners
Wal-Mart
Disney
Foreign partners
Regulator
Food and Drug Administration
Securities and Exchange Commission
Environmental protection Agency

Owners
Board of Directors
Employees
Physical work environment

The importance of Organizational Culture
Determinants of Organizational Culture
Managing Organizational Culture

The set of values, beliefs, behaviors, customs,

and attitudes that help the member of the
organization understand what it stands for,
how it does things, and what it considers
important.

The importance of Organizational
The importance of Organizational
Culture
Culture
Determine the feel of the organization.

Microsoft, Bank of America, Texas instrument,
southwest Airlines.
Powerful force that can shape the firms

overall effectiveness and long term success.
HP, P&G, Kmart

Determinants of Organizational
Determinants of Organizational
Culture
Culture
Founder: James Cash Penny --- associates,

customer satisfaction, Sam Walton, Ross
Perot and Walt Disney.
Symbols, stories, heros, slogans and

ceremonies. HP, What would Walt have
done?
Corporate success and shared experience:

Hall-mark and kmart.

By understanding Organizational culture, managers can take appropriate action.
Maintained or changed. The HP ways
Maintained by rewarding and promoting people whose behavior are consistent
Articulating through slogans, ceremonies and so forth.
Maintain effective and change dysfunctional. Shell Oil-story of firms past. GM
strong in product development & internal competition, not enough marketing
and competition.
Problems from merger and Growth of rival factions. Wells Fargo with First
Interstate.
To Change the culture managers must have a clear idea of what they want to do.
Continental Airlines
Bringing outsiders to management positions
Adopting new slogans, telling new stories, staging new ceremonies and breaking
with tradition.

Organization-Environment
Organization-Environment
Relationships
Relationships
How environments affect Organization
How Organization adapt to their Environment

Environmental Change and Complexity
Uncertainty
Competitive forces: Five Competitive forces
1. The threat of New Entrant
2. Competitive rivalry,
3. The Threat of substitute product
4. The power of buyer
5. The power of supplier

How Organization adapt to their
How Organization adapt to their
Environment
Environment
Strategic Response
Merger, Acquisition and Alliances
Information Management
Organization Design and Flexibility
Direct Influence

Effectiveness:
Effectiveness:
Effectiveness involves doing the right things.
Effectiveness involves doing the right things.
Given the interaction between Organization and
Given the interaction between Organization and
environment, Effectiveness is related to how well
environment, Effectiveness is related to how well
an organization understand, reacts to and influence
an organization understand, reacts to and influence
its environment.
its environment.
Models Organizational Effectiveness
Examples of Organizational Effectiveness

Examples of Organizational
Examples of Organizational
Effectiveness
Effectiveness
Fortunes Most Admired

Companies (2007)
Dell
General Electric
Starbucks
Wall-Mart Stores
Southwest Airlines
Business Weeks best

performing Companies
(200 )

Individual Ethics in Organization
Emerging Ethical Issues in Organization
Social Responsibility and Organization
The Government and Social Responsibility
Managing Social Responsibility

Managerial Ethics
Ethics in an Organizational Context
Managing Ethical Behavior

Ethics: An individuals personal belief about

whether a behavior, action or decision is right
or wrong.
Ethical Behavior: Behavior that conform to

generally accepted social norms
Unethical Behavior: Behavior that does not

conform to generally accepted social norms.

Managerial Ethics
Managerial Ethics
Managerial Ethics: Standards of behavior that

guide individual managers in their work.

Each managers individual ethics
Message sent by organizational practices

Leadership
Culture
Training
Codes
Guidelines

Ethical Leadership: Roles in shaping Ethical norms

and culture
Ethical Issues in Corporate Governance: Focuses on

the need for BOD to maintain appropriate oversight
of senior management
Ethical issues in Informational Technology: Relates

to individual privacy, and potential abuse of
organizations information technology by individuals

Social Responsibility and
Social Responsibility and
Organization:
Organization: Social responsibility is the set of obligations an Social responsibility is the set of obligations an
organization has to protect and enhance the society in which it functions organization has to protect and enhance the society in which it functions
Social Responsibility:
Areas of social responsibility: Organizational

Stakeholders
The Natural Environment
General Social Welfare
Arguments for and against social

responsibility

responsibility
responsibility
For:
1. Business create problems and should

therefore help to solve them.
2. Corporations are citizens in our society.
3. Business often has the resources

necessary to solve problems.
4. Business is the partner in our society along

with Government and general population

responsibility
responsibility
Against
1. The purpose of business in USA society is

to generate profit for owner.
2. Involvement in social programs gives

business too much power.
3. There is potential for conflicts of interest.
4. Business lacks the expertise to manage

social problems

Organizational Approaches to Social
Organizational Approaches to Social
Responsibility
Responsibility
Obstructive Stance
Defensive Stance
Accommodative Stance
Proactive Stance

Government influence the organization
Government influence the organization
1. Direct Regulation
2. Indirect Regulation

Organization Influence Government
Organization Influence Government
Personal contacts and network
Lobbying
Political action Committee
Favor and other influence tactics

Managing Social responsibility
Managing Social responsibility
Formally
1. legal compliances
2. Ethical compliances
3. Philanthropic giving
Informally
1. Organization leadership and culture
2. Whistle blowing

The nature of International Business
The Structure of Global Economy
Environmental Challenges of
International Business
Competing in a Global Economy

The nature of International
The nature of International
Business
Business
Meaning
Trends
Managing the process of Globalization
Competing in a global Market

Meaning of International
Meaning of International
Business
Business
Domestic business
International Business
Multinational Business
Global Business

Trends of International business
Trends of International business

Exporting and Importing
Licensing
Strategic Alliance
Joint Venture
Direct Investment

Advantages & disadvantages of
Advantages & disadvantages of
Importing & Exporting
Importing & Exporting
Advantages
Small Cash Outlay
Little Risk
No adaptation
necessary
Disadvantages
Tariffs and taxes
High transportation
costs
Government restriction

Licensing
Licensing
Advantages
Increased profitability
Extended Profitability
Disadvantages
Inflexibility
Competition

Strategic Alliances/ Joint venture
Strategic Alliances/ Joint venture
Advantages
Quick Market Entry
Access to materials and

technology
Disadvantages
Shared Ownership

Direct Investment
Direct Investment
Advantages
Enhanced Control
Existing infrastructure
Disadvantages
Complexity
Greater Economic and

Political Risk
Greater Uncertainty

Mature market economy and system
High potential/ High Growth Economies
Other Economies
The role of GATT and WTO

Environmental Challenges of International Management Environmental Challenges of International Management
The Economic Environment
1. Economic System
2. Natural Resources
3. Infrastucture
Political/ legal environment
1. Stability of Govt.
2. Incentives
3. Control
4. Economic Communities
Cultural environment
1. Values, symbols, belief and language
2. Individual behavior across culture

Competing in Global Economy
Competing in Global Economy
Globalization and Organization size
Managing Challenge in Global Economy

Multinational Corporation
Medium size Organization
Small organization

Managing Challenge in Global
Managing Challenge in Global
Economy
Economy
Planning and decision making
Organizing
Leading
Controlling

The Nature of Diversity and Multiculturalism
Diversity and Multiculturalism in Organization

Trends in Diversity and Multiculturalism
Dimensions of Diversity and Multiculturalism
Effects of Diversity and Multiculturalism in Organization

Diversity, Multiculturalism and Competitive advantage
Diversity, Multiculturalism and Conflict
Managing Diversity and Multiculturalism in Organizations

Individual Strategies
Organizational Approaches
Toward the Multicultural Organization

The nature of multiculturalism and
The nature of multiculturalism and
Diversity
Diversity
When the people comprising an organization

represent different cultures, their differences
in values, beliefs, behaviors, customs, and
attitudes reflect multiculturalism.
Diversity exists in a community of people

when its members differ from one another
along one or more important dimensions.

Trends in Diversity and
Trends in Diversity and
Multiculturalism
Multiculturalism
All organizations are becoming more diverse

and multiculturalism.
Reasons:
Changing demographics in labor force
Legislation and legal action
Increased awareness that diversity improves

the quality of workforce
The Globalization Movement

Dimensions of diversity
Dimensions of diversity
Age distribution
Gender
Ethnicity
Other

Effects of diversity and
Effects of diversity and
Multiculturalism in Organization
Multiculturalism in Organization
Source of Competitive Advantage
Source of Conflict

Cost Argument
Resource acquisition argument
Marketing argument
Creativity argument
Problem solving argument
System flexibility argument

Source of Conflict
Source of Conflict
Favor to diversity status
Misunderstood, misinterpreted, or
inappropriate interaction
Cultural difference
Fear, distrust and individual prejudice

Managing Diversity and
Managing Diversity and
Multiculturalism
Multiculturalism
Individual Strategy
Understanding
Empathy
Tolerance
Willingness to Communicate
Organizational Approaches
Organizational Policies
Organizational practices
Diversity and Multicultural Training
Organizational Culture

Pluralism
Full structural Integration
Full integration of Informal network
Absence of prejudice and discrimination
No gap in organizational identification based o

cultural identity group
Low level of intergroup conflict

Basic Elements of Planning and Decision

Making
Managing Strategy and strategic Planning
Managing decision Making and Planning

Solving
Managing new venture formation and

Entrepreneurship

Basic Elements of Planning and
Basic Elements of Planning and
Decision making
Decision making
Decision making and Planning Process
Organizational Goals
Organizational Planning
Tactical Planning
Operational Planning
Managing Goal-setting and Planning process

Opening incident
Opening incident
Fickle customer, rapid changes- apparel industry
Fashion designer- Ralph Lauren, Donna Karan< Prada, Gucci, Fendi.
Coach- different approach- customers choice-competitive advantage-sells
$865/sft-industry-$200-$300
Handbag-high quality-not stylish-Owner Sara Lee Corp.-Lack mgt. attention-
slowing sales
CEO Lew Frankfort-failing- elite and saver- balance
Planning and forecasting- tools- trends-effectiveness-risk-sales data each
store daily-season several times-spend $2 million
New product- 12 market test-another 12 market before six moths- monitored
and adjustment
Another designer- Krakoff- updates-monthly new products- outsourcing
Diversified- shoe, furniture, jewelry even Coach car
Increases

Decision making and Planning
Decision making and Planning
Process
Process
Fig 7-1

Purposes of Goals
Kinds of Goals
Responsibilities of setting goals
Managing multiple goals

Purposes of Goals
Purposes of Goals
To provide guidance and direction
To facilitate planning
To inspire motivation and commitment
To promote evaluation and control

Kinds of Goals
Kinds of Goals
On the basis of Level
Mission
Strategic
Tactical
Operational
Goals for different area:
Operation
Marketing
Finance
For different time frame
Long term
Intermediate term
Short term
Fig 7-2
Strategic Plan: general plan
outlining decisions of resource
allocation, priorities and action
steps necessary to reach
strategic goals.
Tactical plan: achieving tactical
goals and developed to
implement parts of a strategic
plan
Operational plan : to carry out
tactical plans to achieve
operational goals

Types of Planning
Types of Planning

Responsibilities for setting goals
Responsibilities for setting goals
Each manager generally has responsibilities

of setting goals that corresponds to his or her
level in the organization

Managing multiple goal
Managing multiple goal
Sometimes experience conflicts or

contradictions among goals.
To address such problems, managers must

understand the concept of optimization.
Optimizing is the balancing and reconciling

possible conflicts among goals.

Kinds of organizational Plans
Time frame for planning
Responsibility for planning
Contingency planning and crisis management

General:
Strategic
Tactical
Operational

Long range planning
Intermediate Plans
Short range Planning

Responsibilities for Planning
Responsibilities for Planning
Planning staff
Planning task force
Board of directors
Chief Executive Officer
Executive committee
Line Management

Contingency Plan and Crisis
Contingency Plan and Crisis
Management
Management
The determination of alternative courses of action to

be taken if an intended plan is unexpectedly
disrupted or rendered inappropriate.
Crisis management, a related concept, is the set of

procedures the organization uses in the event of a
disaster or other unexpected calamity
Example: Y2K bug in 1990s, 911

Tactical Planning
Tactical Planning
Developing tactical Plan
Executing tactical plan

Recognize and understand overarching

strategic plans and tactical goals.
Specify relevant resources and time issues
Recognize and identify human resource

commitments
Coca-Cola

Evaluate each courses of action in light of its goal
Obtain and distribute information and resources
Monitor horizontal and vertical communication and

integration of activities
Monitor ongoing activities for goal achievement.
Walt Disney Company

Single use plan: Developed to
carry out a course of action not
likely to be repeated in future.
Program: Single use plan for a
large set of activities
Policy: Single use plan of less
scope and complexity than a
program
Standing Plan: Developed for
activities that recur regularly over
a period of time.
Policy: specifying the
organizations general response to
a designated problem or situation
Standing Operating Procedure:
Outlining steps to be followed in
particular circumstances.
Rules and Regulation: Describing
exactly how specific activities are
carried out.

Managing Goal setting and Planning
Managing Goal setting and Planning
processes
processes
Barriers to goal setting and planning
Overcoming the barriers
Using goals to implement plans

Inappropriate goals
Improper reward system
Dynamics and Complex environment
Reluctance to establish goals
Resistance to change
Constraints

Understand the purpose of goals and planning
Communication and participation
Consistency, revision and Updating
Effective reward system

MBO
The nature and purpose of formal goal setting
The goal setting process
The effectiveness of formal goal setting

Managing Strategy and Strategic
Managing Strategy and Strategic
Planning
Planning
The Nature of Strategic Management
Using SWOT Analysis to formulate Strategy
Formulate Business Level Strategies
Implementing Business Level Strategies
Formulating Corporate Level Strategies
Implementing Corporate Level Strategies
International and Global Strategies

Opening Incident
Opening Incident
Nike 1964-1990s-biggest success
Innovator-waffle-sole shoe, air cushion-technical shoe design-

sportswear fashionable, casual street wear
Picked 1997-sales 50%-profits$795, 1999-$451 (p)
Phil Knight $9b company with$5b Mgt
Price $150-$300-above teenager- biggest
Saturated market athletic shoe
Hire top manager from outside the shoe industry-from running

and basketball to soccer and cycling and golf apparel
Two co presidents-Parker and Dension
Satisfy customers-sales rises-recover former glory
Clouds-1
st
-accusation of exploitation third world workwrs-
boycott-2
nd
- Footlocker-$100-sell through other outlet-share
price reduced

The Components of Strategy
Types of Strategic Alternatives
Strategy Formulation and Implementation

Strategy: A comprehensive plan for accomplishing

the organizational goals.
Strategic Management: A comprehensive and

ongoing process aimed at formulating and
implementing effective strategies.
Effective strategies address three organizational

issues: distinctive competence, scope and resource
development.
Distinctive competence: An organizational strength

possessed by only a small of competing firms

Business level strategies: The set of strategic

alternatives from which an organization chooses as it
conducts business in a particular industry or market.
Corporate level strategies: The set of strategic

alternatives from which an organization chooses as it
manages its operation simultaneously across several
industries and several markets.

Strategy Formulation and
Strategy Formulation and
Implementation
Implementation
Strategy Formulation is the set of processes involved

in creating and determining the strategies of the
organization
Strategy Implementation is the process of executing

strategies
Deliberate strategy: a plan of action that an

organization chooses and implements to support
specific goals
Emergent strategy: a pattern of action that develops

over time in an organization in the absence of
mission and goals or despite mission and goals

Using SWOT Analysis to formulate
Using SWOT Analysis to formulate
Strategy
Strategy
Evaluating an Organizations Strength
Evaluating an Organizations Weakness
Evaluating an Organizations Opportunities

and threats

SWOT analysis
SWOT analysis
SWOT analysis help the organization to

chooses strategies that support its mission
and (1) exploit its opportunities and strength
(2) Neutralize its threats and (3) avoid its
weakness.

Porters Generic Strategies
The Miles and Snow Typology
Strategies based on the product life cycle

SWOT analysis
SWOT analysis
Mission
An Organizations Fundamental Purpose
SWOT Analysis
To formulate startegies that support the Mission
Internal Analysis External Analysis
Strength Opportunities
Weaknesses Threats
Good startegies
Those that support the missiom and
Exploit opportunities and strength
neutralize threats
Avoid weakness

Porters generic Strategies
Porters generic Strategies
Michel porter has proposed three generic strategies. Each of these Michel porter has proposed three generic strategies. Each of these
strategies are presumed to be widely applicable to different strategies are presumed to be widely applicable to different
competitive situations. competitive situations.
Strategy Type Definition Example
Differentiation Distinguish product and services
Rolex
Mercedes- Benz
Nikon
Overall cost
Leadership
Reduce manufacturing
And other cost
Timex
Hyundai
Kodak
Focus
Concentrate on specific
regional market, product market
or group of buyer
Tag Heuer
Fiat, Alfa Romeo
Polaroid

Four strategic types of organization. Three of these- the prospector, Four strategic types of organization. Three of these- the prospector,
the defender, and the Analyzer- can be effective in certain the defender, and the Analyzer- can be effective in certain
circumstances. The fourth type the reactor- an ineffective approach to circumstances. The fourth type the reactor- an ineffective approach to
strategy strategy
Strategy Type Definition Example
Prospector
Innovative And growth oriented,
searches for new market and
new growth opportunities,
Encourages risk taking
Amazon.com
3M
Rubbermaid
Defender
Protects current market,
maintain stable growth, serves
Current customers
BIC
eBay
Mrs. Fields
Analyzer
Maintain current markets and
Current customer satisfaction
With moderate emphasize on
innovation
Dupont
IBM
Yahoo
Reactor
No clear strategy, reacts to
Changes in the environment,
Drifts with events
International Harvester
Kmarts
Montgomery Ward

Implementing Business Level
Implementing Business Level
Strategies
Strategies
Strategy implementation at the business level takes

place in the area of marketing, sales, accounting and
finance and manufacturing.
Culture also influence strategy implementation.
Implementation of Porters generic strategies require

different emphasize in each of these organizational
areas
Implementation of Miles and Snows strategies affect

organizational structure and practices.

Formulating Corporate level Strategies
Single-product strategy
Related Diversification
Unrelated Diversification

Bases of relatedness in implementing
Bases of relatedness in implementing
related diversification
related diversification
Basis of relatedness Examples
Similar technology Philips, Boeing, Compaq
Common distribution Nabisco, Philip Moris, P&G

And marketing skill
Common brand name Disney, Universal

and reputation
* Common Customer Merck, IBM

A corporate level strategy is the plan an organization uses to

mange its operations across several businesses.
A firm does not diversify its implementing a single-product

strategy.
An organization pursue a strategy of related diversification

when it operates a set of businesses that are somehow
linked.
Related diversification reduces the financial risk associated

with any particular product, reduces the overhead costs of
each business and enable the organization to create and
exploit synergy.
An organization pursue an unrelated diversification when it

operated a set of businesses that are not logically associated
with one another.

Implementing Corporate Level
Implementing Corporate Level
Strategies
Strategies
Becoming a diversified firm
Managing Diversification

Three ways:
1. Developing new product internally
2. Replacing suppliers (backward integration)

or customers (foreword integration)
3. Engaging in merger or acquisition.

Through the organization structure
Through Portfolio Management
BCG Matrix classifies as Dogs, Cash cows, Question

marks and Stars according to market share and
market growth rate.
The GE Business screen classifies as Winners,

Losers, Question marks, average business or profit
producers according to industry attractiveness and
competitive positions.

The BCG Matrix
The BCG Matrix
Question marks
Stars
Dogs
Cash Cows
High Low
Relative market share
Low
High
M
a
r
k
e
t

G
r
o
w
t
h

R
a
t
e

The GE Business Screen
Winner Winner Question Mark
Winner Average Business Loser
Profit Producer Loser Loser
Good Medium Poor

High

Medium
Low
I
n
d
u
s
t
r
y

a
t
t
r
a
c
t
i
v
e
n
e
s
s
Competitive position

Competitive position
1. Market share
2. Technological Know-
how
3. Product Quality
4. Service Network
5. price
Competitiveness
6. operating Costs
Industry Attractiveness
1. Market growth
2. Market size
3. Capital requirement
4. Competitive intensity

Developing international and Global strategies
Strategic alternatives for international

Business

Developing international and Global
Developing international and Global
strategies
strategies
Three additional sources of Competitive

advantage unavailable to domestic firms:
Global efficiencies, multi market flexibility and
worldwide learning.

Business
Business
1. Home replication strategy
2. The multi domestic strategy
3. The global strategies and
4. Transnational strategies
Have advantages and disadvantages in terms

of its ability to help firm be responsible to local
circumstances and to achieve the benefits of
global efficiencies

Managing Decision Making and
Managing Decision Making and
problem solving
problem solving
The Nature of decision making
Rational perspective on decision Making
Behavioral aspects of decision making
Group and Team decision making in an

Organization

Decision making Defined: Decisions are the integral
parts of all managerial activities, but they are perhaps
most central to the planning process. Decision making
is the act of choosing one alternative from among a set
of alternatives.
Types of Decisions: Programmed and Non
programmed.
Decision Making Conditions: Certainty, risk and
uncertainty.

Rational perspective on decision
Rational perspective on decision
Making
Making
The Classical Model of decision Making: Rational perspective

on decision making rest on the classical model. Assumptions:
managers have complete information and they will behave
rationally.
Steps in rational decision making: 1. recognizing and defining

the problem
2. Identifying alternatives
3. Evaluating alternatives
4. Selecting the best alternative
5. Implementing the chosen alternative
6. Following up and evaluating the effectiveness of the
alternative after it is implemented

The administrative model: Behavioral aspects rely on

the administrative model. Recognize- managers will
have incomplete information and they will not always
behave rationally, concept of bounded rationality and
satisfying.
Political forces in decision making
Intuition and Escalation of Commitment
Risk propensity and Decision Making
Ethics and decision making

The administrative model
The administrative model
Political forces in decision making: Political activities

by coalitions, managerial intuition, and the tendency
to become increasingly committed to a chosen
course of action are all important.
Risk Propensity: also an important behavioral

perspective on decision making.
Ethics: Also affect how managers make decisions

Group and Team decision making in an Organization
Group and Team decision making in an Organization
To help enhance decision making effectiveness
To help enhance decision making effectiveness
managers often use interacting, Delphi, or Nominal
managers often use interacting, Delphi, or Nominal
group or team
group or team
Forms of Group and Team Decision Making
Advantages of Group and Team Decision

Making
Disadvantages of Group and Team Decision

Making
Making Group and Team Decision Making

Process: Number of strategies

Managing New venture Formation and
Managing New venture Formation and
Entrepreneurship
Entrepreneurship
The nature of entrepreneurship
The role of entrepreneurship in society
Strategy for entrepreneurial Organization
Structure for entrepreneurial Organization
The performance of entrepreneurial

Organization

* Entrepreneurship is the process of planning,
organizing, operating and assuming the risk of a
business venture.
An entrepreneur is someone who engages in

entrepreneurship.
In general entrepreneurs start small business.
Small businesses are important source of innovation,

create numerous jobs and contribute to the
successes of large businesses

Strategy for entrepreneurial
Strategy for entrepreneurial
Organization
Organization
In choosing strategies entrepreneurs have to consider the

characteristics of the industry in which they are going to
conduct businesses.
A small business must also emphasize its distinctive

competencies. Small business generally have some
distinctive competencies that they should exploit in choosing
their strategies.
Small businesses are usually skilled in identifying niches in

established markets, identifying new markets
Acting quickly to obtain first mover advantages.
Small businesses are not usually skilled at exploiting

economies of scale.

Business Plan
Business Plan
Once an entrepreneur has chosen a strategy,

the strategy is normally written down in a
business plan.
Writing a business plan forces an

entrepreneur to plan thoroughly and to
anticipate problems that might occur.

Trends in small business start-ups
Trends in small business start-ups
Emergence of E-commerce
Crossover from big business
Opportunities for minorities and women
Better survival rates

Reasons for failure
Reasons for failure
Managerial incompetence or inexperience
Neglect
Weak control system
Insufficient capital

Structure for entrepreneurial
Structure for entrepreneurial
Organization
Organization
With a strategy and business plan in place,

entrepreneurs must choose a structure to
implement them.
All organizational structure may be used. In

addition, the entrepreneur has some unique
structural choice to make.

Reasons for success
Reasons for success
Hard work, drive and dedication
Careful analysis of market conditions
Managerial competence
Luck

4. The organizing Process
4. The organizing Process
11. Basic Elements of Organizing
12. Managing Organization Design
13. Managing organizational Change and

Innovation
14. Managing Human resources in the

organization

Organization
Organization
Organization: How best group organization

activities and resources.
Organizational Structure: The set of elements

that can be used to configure an organization

Designing Job
Grouping Jobs: Departmentalization
Establishing Reporting relationship
Distributing Authority
Coordinating Activities
Differentiating between Positions

Designing Job
Designing Job
The determination of an
The determination of an
individuals work-related responsibilities
individuals work-related responsibilities
1. Job Specialization: The degree to which the

overall task of the organization is broken down and
divided into smaller component parts.
Alternatives:
Job Rotation
Job Enlargement
Job enrichment
Job characteristics Approach
Work team

Job Specialization
Job Specialization
The degree to which the
The degree to which the
divided into smaller component parts
divided into smaller component parts
Benefits:
1. Small and simple task
2. Decreases transfer time
3. Easier to develop specialized equipment to

assist with the job
4. Training in relatively low cost.

Job Specialization
Job Specialization
Negative Consequences:
Boredom and monotony
Absenteeism, inferior quality of work
Anticipated benefits may not always occur

Job Rotation
Job Rotation
Involves systematically moving employees

from one job to another

Job enlargement
Job enlargement
Involves giving the employee more task to be

performed
Job enrichment: involves increasing both the

number of tasks the worker does and control
the worker has over the job

Job Characteristics approach
Job Characteristics approach
Suggests that jobs should br diagonsed and improved
along the five core dimensions taking into account
both the work system and employee performance
Fig 11.1
Five core dimensions are:
Skill variety
Task variety
Task significance
Autonomy
Feedback

Work team
Work team
Allows an entire group to design the work

system it will use to perform an interrelated
set of tasks

Departmentalization
Departmentalization
The process of grouping jobs according to

some logical arrangement.
Rationale: Size

Bases of Departmentalization
Bases of Departmentalization
Common Bases of departmentalization:
Function
Product
Customer
Location
Other: large organizations employ multiple bases
of departmentalization at different levels.Time

Computer Software
Finance Marketing
President
Manufactuing
Marketing
Finance Design
Dallas Phonix
Consumers Industrial
Northeast US
Central US
Southwest US Northwest US
St. Louis Chikago

Establishing Reporting
Establishing Reporting
Relationships
Relationships
Chain of Command
Narrow Versus Wide Span
Tall Versus Flat organization
Factors influencing Span of Management:
1. Competence of supervisors and subordinates
2. Physical dispersion
3. Extent of no supervisory work
4. Degree of required interaction
5. Extent of standardized procedures
6. Similarity of task being supervised
7. Frequency of new problems
8. Preference of supervisors and subordinated

Power that has
Power that has
been legitimized by the organization
been legitimized by the organization
The process of delegation
- the process by which the manager assign a portion of his total workload to others
Centralization and Decentralization
- The process of systematically delegating power and authority throughout the

organization to middle and lower level managers is decentralization
- Centralization involves keeping power and authority at the top of the organization
- several factors influence the appropriate degree of decentralization
-- Organizational environment
-- History of the organization
Nature of Organization
Ability of lower manager

Coordinating Activities-
Coordinating Activities-
The process
The process
of linking the activities of the various
of linking the activities of the various
departments of the organization
departments of the organization
Primary reasons for interdependence
Pooled ( little interaction), sequential ( output of one

unit become input of other) and reciprocal
interdependent ( flow both way) among departments.
Structural Coordination techniques:
1. A managerial hierarchy
2. Rules and Procedure-Liaison role, task forces and

integrating departments
3. Electronic Coordination

Differentiating between positions
Differentiating between positions
Differences between line and staff:
- Line positions is in direct chain of command that is

responsible for the achievement of the goals.
--- A staff position provides expertise, advice and

support for the line positions
Administrative intensity is the degree to which

managerial positions are concerned with staff
positions

Managing Organization Design
Managing Organization Design
Nature of Organizational design
Several perspective of Organizational design
Situational influence on organizational design
Strategy and Organizational Design
Basic Forms of Organizational Design
Emerging Issues in Organizational Design

The overall set of structural elements and the

relationship among the elements used to
managed the total organization

Several perspective of
Several perspective of
Organizational design
Organizational design
Bureaucratic Model: based on legitimate and formal

system of the authority
Behavioral Model: Consistent with the HR movement

and stressing attention to devreloping work group
and concern with interpersonal process
Likert: System 1 design- similar to bureaucratic and

system 4 design- similar to behavioral

Situational influence on
Situational influence on
organizational design
organizational design
Based on the assumption that optimal design for any

given organization depends on a set of relevant
situational factors
Four basic factors:
1. Core technology
2. Environment: Mechanistic & Organic Organization
3. Organizational Size
4. Organizational Life cycle: birth, youth, midlife ad

maturity

Strategy and Organizational
Strategy and Organizational
Design
Design
An organizations strategy also helps shape its

design
In various ways Corporate Level strategy and

Business level strategy both affect
organizational design.
Basic organizational functions like marketing

and finance also play a role in shaping design.

Basic Forms of Organizational design
Basic Forms of Organizational design
Functional (U-Form) Design : Fig 12.1
Conglomerate (H-form) Design: Fig 12.2
Divisional (M-form) Design: Fig 12.3
Matrix Design: Fig 12.4
Hybrid design

Emerging Issues in Organizational
Emerging Issues in Organizational
Design
Design
The team organization: relies almost exclusively on

project-type with no or little functional hierarchy
The virtual organization: Little or no formal structure
The learning organization: to facilitate the lifelong

learning and personal development of all of its
employees while continually transforming itself to
responding to the changing demands and needs.
International Business Organization: Fig 12.5

Managing Organizational change
Managing Organizational change
and innovation
and innovation
The nature of Organizational change
Managing Change in Organization
Areas of Organizational Change
Organizational Innovation

Organizational change is any substantive

modification to some parts of organization.
Change may be prompted by forces internal

or external to the organization
In general planned changes is preferable to

reactive changes

Lewin Model provides a general perspective

on the steps involved in change
A comprehensive model is usually more

effective.

Resistance to change and
Resistance to change and
Overcoming
Overcoming
People tends to resist change because of
Uncertainty
Threatened self- interest
Different perception
Feelings of loss
Overcoming the resistance:
1. Participation
2. Education
3. Communication
4. Facilitation
5. Force-field analysis

Major areas of Organizational Change
Major areas of Organizational Change
Organizational Structure and Design
Technology
People
Techniques of OD: OD is concerned with

changing attitude, perceptions, behavior,
expectations.
Its effective use relies on important set of

assumptions.

The innovation process has six steps:
Development
Application
Launch
Growth
Maturity
Decline

Basic Categories of Innovation
Basic Categories of Innovation
Radical
Incremental
Technical
Managerial
Product and
Process

Causes of Failure in innovation
Causes of Failure in innovation
Lack of creative individual
Commitments
Fail to recognize opportunities
Resist the change
Tools to overcome:
Reward system
Organizational culture
Intrapreneurship

Managing Human Resources in
Organizations
Organizations
The Environmental context of MANAGEMENT
Attracting HR
Developing HR
Maintaining HR
Managing labor relation
New challenges in changing workplace

Organizations
Organizations
HRM is concerned with attracting, developing

and maintaining the HR of an organization
The Environmental context of HRM consists of

its strategic importance and the legal and
social environments that affect the HRM

Attracting HR
Attracting HR
HR planning: job analysis, future need,

availability, planning program for proper
number and type of employee
Recruitment: Job applicants are attract
Selection : process includes tests, interviews

and assessment centers

Developing HR
Developing HR
Training and development to perform effectively and

to prepare for future.
Performance appraisals for validating selection

device, assessing the impact of training, deciding
pay raise and promotions and determining training
needs.
Both objective and judgemental methods of appraisal

can be applied.
A good system includes several methods

Maintaining HR
Maintaining HR
Fair Compensation
Properly designed incentive or merit pay

system
Career Planning

Right to be represented by union
Engage with CBA for contract
Settle disputes with management

New challenges in changing
New challenges in changing
workplace
workplace
Managing Knowledge Workers
Contingent and temporary workers

The Leading Process
The Leading Process
Basic Elements of individual behavior in

Organization
Managing Employee Motivation and

Performance
Managing Leadership and Influence Process
Managing Interpersonal Relationship and

Communication
Managing Workgroup and Team

Basic Elements of individual behavior
Basic Elements of individual behavior
in Organization
in Organization
Understanding individuals in Organization
Personality and Individual Behavior
Attitude and Individual Behavior
Perception and Individual Behavior
Stress and Individual Behavior
Creativity in Organization
Types of Workplace behavior

Understanding individuals in
Understanding individuals in
Organization
Organization
The Psychological Contract: A basic framework that
can be facilitate this understanding the nature of
individual-organization relationship- the set of
expectations held by people with respect to what they
will contribute to the organization and what they
expect to get in return.
The Person-Job fit: Organizations strive to achieve an
optimal person-job fit, but this process is complicated
by the existence of individual difference
The nature of Individual Difference

Personality and Individual Behavior:
Personality and Individual Behavior:
Personality is the relatively stable set of
Personality is the relatively stable set of
psychological and behavioral attitudes that
psychological and behavioral attitudes that
distinguish one person from another.
distinguish one person from another.
The Big Five Personality Traits, : 1. Agreeableness,

2. conscientiousness 3. negative emotionality, 4.
extraversion, 5. Openness.
The Myers-Briggs Framework: Also be a useful

mechanism for understanding personality.
Other Personality Traits at Work: 1. Locus of control,

2. self-efficacy, 3. authoritarianism, 4.
Machiavellianism, 5. Self-esteem, 6. Risk propensity.
Emotional Intelligence : A fairly new concept, may

provide additional insights into personality.

Attitude and Individual Behavior: Attitudes are based on Attitude and Individual Behavior: Attitudes are based on
emotion, knowledge, and intended behavior. Personality is emotion, knowledge, and intended behavior. Personality is
relatively stable, some attitudes can be formed and relatively stable, some attitudes can be formed and
changed easily. Others are more constant changed easily. Others are more constant
Work-related attitudes: Job satisfaction or

dissatisfaction and organizational
commitment.
Affect and Mood in organization

Perception is the set of processes by which an
Perception is the set of processes by which an
individual become aware of and interprets
individual become aware of and interprets
information about the environment.
information about the environment.
Basic Perceptional Process: Selective

perception and stereotyping
Perception and Attitudes: closely related

Stress and Individual Behavior Stress and Individual Behavior
Stress is an individuals response to a strong stimulus. Stress is an individuals response to a strong stimulus.
The General adaptation syndrome outlines the basic stress The General adaptation syndrome outlines the basic stress
process process
Causes and consequence of stress: Cause:

task, physical, role, and interpersonal
demands.
Consequences: Organizational and individual
outcomes as well as burnout
Managing Stress: several things

Creativity is the capacity to generate
Creativity is the capacity to generate
new ideas.
new ideas.
The creative individual: tend to have certain

profiles of background experiences, personal
traits and cognitive abilities
The Creative process: preparation-

incubation-insight- verification
Enhansing Creativity in Organizations

Types of Workplace Behavior
Types of Workplace Behavior
Performance Behavior: set of work-related behaviors

that the organization expect the individual to display
to fulfill the psychological contract
Withdrawal Behavior: absenteeism and turnover
Organizational Citizenship: positive overall

contribution to the organization
Dysfunctional Behaviors: harmful to organization.

Performance
Performance
The Nature of Motivation
Content Perspectives on Motivation
Process perspectives of Motivation
Reinforcement Perspective of Motivation
Popular Motivational Strategies
Using Reward Systems to Motivate

Performance

Motivation: The set of forces that cause people to behave in
certain ways.
The Importance of employees motivation in the workplace:
Motivation along with ability and organizational factors
determine individual performance.
Historical Perspective of Motivation: Evolve from traditional
view through the HR approach to the human resource view.

Content Perspectives on Motivation:
Content Perspectives on Motivation:
Concerned with what factor/factors cause motivation Concerned with what factor/factors cause motivation

The Need Hierarchy Approach
The Two-Factor Theory
Individual Human Needs
Implications of the content perspective

Maslows Need Hierarchy
CD 7-4
Figure 7-3
Physiological
Most basic
need.
Safety
Consists of
the need to be
safe.
Love
The desire to
love and be
loved.
Esteem
Need for
reputation,
prestige, and
recognition
from others.
Self-
Actualization
Desire for
self-
fulfillment.

Herzbergs Motivator-Hygiene
Model
Model
CD 7-5a
Figure 7-4a
Motivators
No Satisfaction Satisfaction
Jobs that do not Jobs offering
offer achievement achievement,
recognition, recognition,
stimulating work, stimulating work,
responsibility, responsibility,
and advancement. and advancement.

Model (continued)
Model (continued)
CD 7-5b
Figure 7-4b
Hygiene Factors
Dissatisfaction No Dissatisfaction
Jobs with poor Jobs with good
company policies, company policies,
and administration, and administration,
technical supervision technical supervision,
salary, interpersonal salary, interpersonal
relationships with relationships with
supervisors, and supervisors, and
working conditions. working conditions.

CD 7-4
Figure 7-3
Physiological
Most basic
need.
Safety
Consists of
the need to be
safe.
Love
The desire to
love and be
loved.
Esteem
Need for
reputation,
prestige, and
recognition
from others.
Self-
Actualization
Desire for
self-
fulfillment.

Model
Model
CD 7-5a
Figure 7-4a
Motivators

Model (continued)
Model (continued)
CD 7-5b
Figure 7-4b
Hygiene Factors

Process Perspectives on Motivation:
Process Perspectives on Motivation:
Deal with how motivation occurs
Deal with how motivation occurs
Expectancy Theory: Effort- High performance-

rewards. Positive outweigh negative: Fig 16.4
Equity Theory: To achieve and maintain social

equity.
Goal-Setting Theory: Fig 16.6
Attribution Theory is a new process theory
Implication of the Process Perspectives

Reinforcement Perspectives on
Reinforcement Perspectives on
Motivation:
Motivation:
Focuses on how motivation is
Focuses on how motivation is
maintained. Behavior-reward-repeated, behavior-
maintained. Behavior-reward-repeated, behavior-
punishment-less likely to be repeated : table 16.1
punishment-less likely to be repeated : table 16.1
Kind of reinforcement in Organization: positive

reinforcement, avoidance, punishment, and
extinction
Providing Reinforcement in Organizations:

fixed interval, variable interval, fixed ratio and
variable-ratio schedule.
Implications of the Reinforcement

Perspectives

Popular Motivational Strategies:
Popular Motivational Strategies:
derived from various theories of
derived from various theories of
motivation
motivation
Empowerment and participation: Empowerment: the process

of enabling workers to set their goals, make decisions, and
solve problems within heir sphere of responsibility and
authority.
Participation: The process of giving employee a voice in
making decision in their own work
Alternative form of work arrangement:

-variable work schedule
-Flexible work schedule
-Job sharing: Two part-time share one full time
- Telecommuting: Allow a part of work time in offsite

Using Reward System to Motivate
Using Reward System to Motivate
Performance
Performance
Merit Reward Systems: Based on relative value of

contribution
Incentive Reward System: Piece rate incentive plan
Team and Group Incentive Reward Systems:

gainsharing- share the cost saving
Scanlon Plan- Distribution of gain much more toward
employee
Executive Compensation: base salary, incentive pay,

stock option plan
New Approaches to performance based Rewards

Managing Leadership and Influence
Managing Leadership and Influence
Processes
Processes
The Nature of Leadership
Generic Approaches to Leadership
Situational Approaches to Leadership
Related Approaches to Leadership
Emerging Approaches to Leadership
Political behavior in Organization

The Meaning of Leadership
Leadership and Management
Leadership and Power

As a process, leadership is the use of no coercive influence to

shape the groups or organizations goals, motivate behavior
toward the achievement of those goals and help define group
or organization culture.
As a property, Leadership is the set of characteristics

attributed to those who are perceived to be leader.
Leadership and management are often related but are also

different. Table 17.1
Managers and leaders use legitimate, reward, coercive,

referent- personal power accrues based on identification,
imitation, loyalty or charisma and expert power.

Leadership Traits: The trait approach to leadership assumed

that some basic traits or set of traits differentiated leaders
from non leaders.
Leadership Behaviors Approach: assumed that the behavior

of effective leaders was somehow different from the behavior
of non leaders.
Research at the university of Michigan and Ohio state

University identified two basic forms of leadership behavior-
one concentrated on work and performance and the other
concentrated on employee welfare and support.
The managerial grid attempts to train managers to exhibit high

level of both forms of behavior.

Four Leadership Styles Derived
from the Ohio State Studies
CD17-2
Figure 17-2
High structure,
high consideration
The leader provides a lot of guidance
about how tasks can be completed
while being highly considerate of
employee needs and wants.
Low structure,
high consideration
Less emphasis is placed on
structuring employee tasks while the
leader concentrates on satisfying
High structure,
low consideration
Primary emphasis is placed on
structuring employee tasks while
the leader demonstrates little
consideration for employee needs
and wants.
Low structure,
low consideration
The leader fails to provide necessary
structure and demonstrates little
and wants.
Low High
Initiating Structure
Low
High
C
o
n
s
i
d
e
r
a
t
i
o
n
Irwin/McGraw-Hill Copyright The McGraw-Hill Companies, 2001 All Rights Reserved

The Leadership Grid
The Leadership Grid
CD17-3
Figure 17-3
Low 1 2 3 4 5 6 7 8 9 High
High
9
8
7
6
5
4
3
2
1
Low
C
o
n
c
e
r
n

f
o
r

P
e
o
p
l
e
1,1
Impoverished
management
1, 9
Country club
management
5,5
Middle-of-the
road management
9,9
Team
management
9,1
Authority-
compliance
Source: From Leadership Dilemmas - Grid Solutions, p 29 by Robert R Blake and Anne Adams McCanse.
Copyright 1991 by Robert R Blake and the estate of Jane S Mouton. Used with permission. All rights reserved.
Concern for Production

Situational Approaches to Leadership:
Situational Approaches to Leadership:
Recognize that appropriate forms of leadership behavior are not Recognize that appropriate forms of leadership behavior are not
universally applicable and attempt to specify situations in which universally applicable and attempt to specify situations in which
various behaviors are appropriate. various behaviors are appropriate.
LPC Theory: Suggests that a leaders behaviors should be

either task oriented or relationship oriented, depending on the
favorableness of the situation.
Path-Goal Theory: Suggests that directive, supportive,

participative, or achievement oriented leaders behavior may
be appropriate, depending on the personal characteristics of
subordinates and the environment.
Vrooms Decision Tree Approach: Maintains that leaders vary

the extent to which they allow subordinates to participate in
decision making as a function of problem attributes.
The Leader-Member Exchange Approach: Focuses on

individual relationship between leaders and followers and on
in-group versus out-group considerations.

CD17-4
Figure 17-4
Representation of Fiedlers
Contingency Model
Contingency Model
Situational
Control
High Control
Situations
Moderate
Control Situations
Low Control
Situations
Leader-member
relations
Task Structure
Position Power
Good Good Good
High High High
Strong Weak Strong
Good Poor Poor
Low High High
Weak Strong Strong
Poor Poor
Low Low
Strong Weak
Situation I II III IV V VI VII VIII
Optimal
Leadership
Style
Task Motivated
Leadership
Relationship
Motivated Leadership
Task Motivated
Leadership

Houses Path-Goal Theory
CD17-5
Figure 17-5
Employee Characteristics
- Locus of control
- Task ability
- Need for achievement
- Experience
- Need for clarity
Environmental Factors
- Employees task
- Authority system
- Work group
Leadership Styles
- Directive
- Supportive
- Participative
- Achievement oriented
Employee Attitudes
and Behavior
- Job satisfaction
- Acceptance of leader
- Motivation

Substitutes to Leadership: leaders behaviors are

neutralized or replaced by characteristics of
subordinates, the task, and the organization
Charismatic leadership: A form of interpersonal

attraction that inspire support and acceptance
Transformational leadership: Leadership that goes

beyond ordinary expectations by transmitting a
sense of mission, stimulating learning experiences
and inspiring new way of thinking.

Charismatic Model of Leadership
Organizational
culture
Leader
behavior
Effects on
followers and
work groups
Outcomes
CD17-7a
Figure 17-7a
Adaptive
Leader
establishes a
vision
Leader
establishes high
performance
expectations and
displays
confidence in
him/herself and
the collective
ability to
realize the vision
Increased
intrinsic
motivation,
achievement
orientation, and
goal pursuit
Increased
identification
with the leader
and the
collective
interests of
organizational
members
Personal
commitment
to leader
and vision
Self-
sacrificial
behavior
Organiza-
tional
commitment
Task
meaningful-
ness and
satisfaction

Strategic Leadership
Cross-Cultural Leadership
Ethical Leadership

Common Political Behavior: Influence process

frequently used in the organization.
Impression Management: is a direct and

intentional efforts of someone to enhance his
or her image in the eye of others.
Managing Political Behavior: steps to limit.

Managing Interpersonal Nature of
Managing Interpersonal Nature of
organization
organization
The Interpersonal Nature of Organization
Communication and the Managers Job
Forms of Communication in Organization
Informal Communication In Organization
Managing Organizational Communication

The Interpersonal Nature of
The Interpersonal Nature of
Organization
Organization
Communication is the process of transmitting

information from one person to another.
Effective communication is the process of

sending a message in such a way that the
message received is as close in meaning as
possible to the message intended.
Interpersonal Dynamics
Outcomes of Interpersonal Behavior

Communication and the Managers
Communication and the Managers
Job
Job
A definition of Communication
The Role of Communication in Management:

Pervasive and important part of managers world.
The Communication Process: Encoding-transmitting-

receiving-decoding
In two way communication this process continues

with the roles reversed.
Noise can disrupt any part of the overall process.

Forms of Communication in
Forms of Communication in
Organization
Organization
Interpersonal Communication: Focus on communication

among a small number of people. Two important forms- Oral,
written, both. Weigh the pros and coins of each when
choosing a medium,
Communication in Network and Work Teams: Communication

networks are recurring patterns of communication among
members of a group or work team.
Organizational Communication: *Vertical and *Horizontal

- Organization also use information system to manage
communication.
Electronic Communication: Profound effect on managerial and

organizational communication.

Informal Communication In
Informal Communication In
Organization
Organization
A great deal in organization
A great deal in organization
The Grapevine
Management by wandering Around
Nonverbal communication: facial expression,

body language, physical contact, gesture, and
inflection and tone

Managing Organizational
Managing Organizational
Communication
Communication
Barriers to communication: Individual and

organizational level
Improving Communication Effectiveness:

individual and organizational kills are needed

Barriers to communication
Barriers to communication
Individual barriers
Conflicting or inconsistent
signals
Credibility about the subject
Reluctance to communicate
Poor listening skill
Predispositions about the

subject
Organizational barriers
Semantics
Status or power differences
Different perceptions
Noise
Overload
Language differences

Improving Communication
Improving Communication
Effectiveness
Effectiveness
Individual skills
Develop good listening skills
Encourage two way

communication
Be aware of language and

meaning
Maintain credibility
Be sensitive to receivers
perspective
Be sensitive to senders
perspective
Organizational skill
Follow up
Regulate information flows
Understand the richness of

media

More or less effective listening
More or less effective listening
More effective listening
Stays active, focused
Pay attention
Ask questions
Keeps an open mind
Assimilates information
Less effective listening
Is passive, laid back
Is easily distracted
Ask no question
Has preconception
Disregard information

Managing work Group and Team
Managing work Group and Team
Groups and Teams in Organization
Characteristics of Groups and Teams
Interpersonal and intergroup Conflict
Managing Conflict in Organization

A group is two or more people who interact regularly to accomplish a A group is two or more people who interact regularly to accomplish a
common purpose or goal. common purpose or goal.
A team is a group of workers that function as a unit, often with little or A team is a group of workers that function as a unit, often with little or
no supervision, to carry out organizational functions no supervision, to carry out organizational functions
Types of Groups and Teams: Types of group:

1. Functional group
2. Task group and teams
3. Informal or interest group
Why people Join Groups and Teams: People join functional

group or team to pursue a career. Reasons for joining
informal or interest group: Interpersonal attraction, group
activities, group goals, need satisfaction, and potential
instrumental benefits
Stages of Group and Team Development: Forming-

Storming-Norming-Performing

Role Structure: define task and socioemotional

specialists and may be disrupted by role ambiguity,
role conflict and role overload.
Behavioral Norms: Standards of behavior for group

members.
Cohesiveness: Extent to which members are loyal

and committed to the team and to one another.
Formal and Informal leadership: Informal leaders are

those whom the group members themselves choose
to follow.

The Nature of Conflict:* Conflict is a disagreement

between two or more people, groups, or
organizations. * Too little or too much conflict may
hurt performance, but an optimal level can improve
performance
Causes of Conflict: Interpersonal and intergroup

conflict may be caused by personality differences or
by particular organizational strategies and practices.

Managing Conflict in Organization: Organizations
Managing Conflict in Organization: Organizations
can encounter conflict with one another and with
can encounter conflict with one another and with
various elements of the environment
various elements of the environment
Stimulating Conflict
Controlling Conflict
Resolving and Eliminating Conflict

6. The Controlling Process
6. The Controlling Process
21. Basic Elements of Control
22. Managing Operations, Quality and

Productivity
23.Managing Information and Information

Technology

The Nature of Control
Operations Control
Financial Control
Structural Control
Strategic Control
Managing Control in Organization

The purpose of Control
Types of Control
Steps in the Control Process

Adapting to environmental change
Limiting the accumulation of errors
Coping with organizational complexity
Minimizing costs

Types of Control
Types of Control
Areas of control
Levels of control
Responsibilities of control

Steps in control Process
Steps in control Process
Steps:
Step 2
Measuring
Performance
Step 1
Establishing
Standards
Step 4
Considering
Corrective
action
Step 3
Comparing
Performance
against standards.
Maintain the
Status quo
Correct the
deviation
Change
Standards

Operations Control:
Operations Control: transform resources into transform resources into
product product
Forms of Operational Control
Preliminary Control: inputs
Screening Control: transformational process
Post action Control: outputs
Most organization use multiple control

systems

Financial Control
Financial Control
Budgetary Control
Financial Statements
Ratio Analysis
Financial Audits

Budgetary Control
Budgetary Control
Types of Budget
Financial Budget
Cash-flow or cash budget
Capital expenditures budget
Balance Sheet Budget
Operating Budget
Sales or revenue budget
Expense Budget
Profit Budget
Nonmonetery Budget
Labor Budget
Space Budget
Production Budget
What Budget shows

Structural Control:
Structural Control: Addresses how well an Addresses how well an
organizations structural elements serve their intended structure organizations structural elements serve their intended structure
Organization select between the extreme of two forms. Organization select between the extreme of two forms.
Bureaucratic Control (formal or
mechanistic arrangement)
Employee compliance
Strict rules, formal controls, rigid
hierarchy
Directed toward minimum levels
of acceptable performance
Tall structure, top-down influence
Directed at individual
performance
United and formal
Decentralized Control (informal or
organic arrangement)
Employee commitment
Group norms, culture, self control
Directed toward enhanced
performance above and beyond
the minimum
Flat structure, shared influence
Directed at group performance
Extended and
formal01711429221

Strategic Control:
Strategic Control: Focuses on how effectively the Focuses on how effectively the
organizations strategies are succeeding in helping the organizations strategies are succeeding in helping the
organization meet its goals organization meet its goals

Integrating strategy and control: Generally

achieved through organization structure,
leadership, technology, HR, and information
and operational control systems
International strategic control: for

multinationals. Whether to practice centralized
or decentralized control.

Managing Control in the organization
Managing Control in the organization
Characteristics of effective control
Resistance to control
Overcoming resistance to control

Integrating with planning
Flexibility
Accuracy
Timeliness
Objectivity

Overcontrol
Inappropriate Focus
Rewards for inefficiency
A desire to avoid Accountability

Improving the effectiveness of control
Encouraging Employee participation
Develop Verification Procedures

Productivity
Productivity
The nature of operations management
Designing operation systems
Organizational Technologies
Implementing operational system through

supply chain Management
Managing Total Quality
Managing Productivity

The nature of operations management
The nature of operations management: :
Set of managerial activities that organizations use in creating their product Set of managerial activities that organizations use in creating their product
and services. and services.
The importance of operations management
Manufacturing and production operations
Service Operations
The roles of operations in organizational

strategy

Determining Product-Service Mix
Capacity Decisions
Facility Decisions
A. Location
B. Layout

Manufacturing technology
Automation
Computer-Assisted Manufacturing :CAD CAM
Robotics
Service Technology

Implementing operational system through supply chain
Implementing operational system through supply chain
Management: Supply chain Management is a
Management: Supply chain Management is a
comprehensive view of managing all of these activities
comprehensive view of managing all of these activities
in a more efficient manner
in a more efficient manner
Operation Management as Control
Purchasing Management
Inventory management

The meaning of quality: performance, Features, Reliability, Conformance,

Durability, Serviceability, Aesthetics, perceived quality.
The importance of quality: Malcolm Baldrige Award;
A. Competition
B. Productivity
C. Costs
Total quality management
TQM tools and techniques

Total quality management:
Total quality management: a comprehensive a comprehensive
effort to enhance an organizations product or service quality effort to enhance an organizations product or service quality
Employee
involvement
Materials Technology Methods
Strategic Commitment
Quality Improvement

Value added Analysis: to determine value added for customers.
Benchmarking: process of learning how other firms do things in
exceptionally high quality manner
Outsourcing
Reducing cycle time: Cycle-developing, making and distributing products
ISO 9000:2000: Set for quality standards
ISO 14000: set of standards for environmental performance
Statistical quality control: to monitor quality including acceptance sampling
and in-process sampling.
Six Sigma: tries to eliminate mistakes. Produce a mere 3.4 mistakes per
million. Developed in 1980 for Motorola.

Managing productivity
Managing productivity
The meaning of productivity
Levels of productivity
Forms of productivity
The importance of productivity
Productivity trends
Improving productivity
Increasing employee involvement

22. Managing information and
22. Managing information and
information Technology
information Technology
Information and the managers
Types of information system
Managing information system
The impact of information system in

organization

The Role of information in managers job
Characteristics of useful information
a. Accurate, b. Timely, c. Complete, d. Relevant
Information Management as Control
Building blocks of information technology

User groups and system requirement
Managers at different levels:

Functional area
Business processes
Major systems by levels
The Internet

Transaction processing systems
Systems by knowledge workers and office

applications
Systems by operations and data workers
Knowledge levels and office systems
Management Information Systems
Decision Support systems
Executive Support Systems
Artificial Intelligence and Expert systems

The Internet
The Internet
The World Wide Wave
Servers and Browsers
Directories and Search Engines
Intranets
Extranets

Managing Information Systems
Managing Information Systems
Creating Information Systems
Integrating Information Systems
Using Information Systems
Managing information Security
Understanding Information System Limitations

Impact of Information system on
Impact of Information system on
Organization
Organization
Leaner organization
More flexible operations
Increased Collaboration
More flexible work sites
Improved management process
Changed employee behavior

Types of Planning
Types of Planning

Making Decisions
Making Decisions
Types of Decisions
Programmed decisions: repetitive and routine

decisions.
Decisions rule identifies the situation and specifies how

the decision will be made.
Nonprogrammed decisions
Decisions made in complex and nonroutine situations.

Problem hasnt arisen before.
It is difficult to define problems nature and structure.
Problem is important and requires a unique solution.

Strategic Results: The 4-P Cycle of
Strategic Results: The 4-P Cycle of
Continuous Improvement
Continuous Improvement
CD1-2
Figure 1-1
People
(Skilled, motivated
people who can handle
change. Less stress.)
Products
(Satisfied customers
because of better
quality goods/services.)
Processes
(Faster, more flexible,
leaner, and ethical organizational
processes. Organizational learning.)
Productivity
(Less wasteful, more
efficient use of all
resources.)

Learning About OB Through
Learning About OB Through
A Combination of Theory,
A Combination of Theory,
Research, and Practice
Research, and Practice
CD1-6
Figure 1-2
Research
Practice
Theory
Most complete
information for
better
understanding
and managing
organizational
behavior

A Topical Model for What Lies Ahead
A Topical Model for What Lies Ahead
CD1-7
Figure 1-3
External Environment (Cultural Context)
Organization (Structure, Culture, Change)
Understanding
and managing
organizational
processes and
problems
Understanding
and managing
individual
behavior
Understanding
and managing
group and
social
processes
Managers responsible
for achieving
organizational
results with and
through others
Organizational
effectiveness
through
continuous
improvement

The Four Layers of Diversity
The Four Layers of Diversity
CD 2-2
Figure 2-1
Source: L Gardenswartz and A Rowe, Diverse Teams
at Work: Capitalizing on the Power of Diversity (New
York: McGraw-Hill, 1994), p. 33
Personality
Functional Level/
Classification
Geographic Location
Age
Work
Location
Seniority
Division/
Dept./
Unit/
Group
Work
Content/
Field
Union
Affiliation
Mgmt.
Status
Marital
Status
Parental
Status
Appearance
Educational
Background
Work
Experience
Race
Income
Personal
Habits
Religion
Recreational
Habits
Ethnicity
Physical
Ability
Sexual
Orientation

Comparison of Affirmative Action,
Comparison of Affirmative Action,
Valuing Diversity, and Managing Diversity
Valuing Diversity, and Managing Diversity
CD 2-3
Table 2-1
Who Conceptual
Focus Driver Benefits Foundation
Affirmative Achieving Laws Targeted Assimilation
Action Equality Groups Model
Valuing Appreciation Ethics All Diversity
Diversity of differences employees Model
Managing Building skillsCorporateThe Synergy
Diversity and changingStrategy Organization Model
policies and all
employees

Workforce Demographics
Workforce Demographics
Percent Entrants
1996-2006
Percent Leavers
1996-2006
Total
Men
Women
100
50.4
49.6
100
55.9
44.1
White
Non-Hispanic 61.0 68.5
African-American 15.6 20.2
Hispanic 14.9 5.2
Asian and Other
Races 8.4 6.1
CD 2-4
Table 2-2

A Typology of Organizational
Values
Values
CD 3-2a
Figure 3-1a
Equitable
O
r
g
a
n
i
z
a
t
i
o
n
a
l

R
e
w
a
r
d

N
o
r
m
s
Unequal or
Centralized Power
Equal or
Decentralized Power
Organization Power Structure
Elite
Endorsed Discouraged
Values Values
Authority Teamwork
Performance Participation
rewards Commitment
Affiliation
Meritocractic
Values Values
Performance Authority
rewards
Teamwork
Participation
Commitment
Affiliation

Values (continued)
Values (continued)
CD 3-2b
Figure 3-1b
Egalitarian
O
r
g
a
n
i
z
a
t
i
o
n
a
l

R
e
w
a
r
d

N
o
r
m
s
Unequal or
Centralized Power
Equal or
Decentralized Power
Organization Power Structure
Leadership
Values Values
Authority Participation
Performance
rewards
Teamwork
Commitment
Affiliation
Collegial
Values Values
Teamwork Authority
Participation Performance
Commitment rewards
Affiliation

A Model for Observing and Interpreting
A Model for Observing and Interpreting
General Manifestations of Organizational Culture
General Manifestations of Organizational Culture
Source: Implications of Corporate Culture: A Managers Guide to Action, by Vijay Sathe.
CD 3-3
Figure 3-2
Emotion
Shared feelings
Behavior
Shared doings
Talk
Shared sayings
Objects
Shared things
Culture
Important
shared
understandings
Interpret
Infer meanings
Generate
Receive
Ask
Observe
Read
Feel

Four Functions of Organizational Culture
Four Functions of Organizational Culture
CD 3-4
Figure 3-3
Organizational
culture
Sense-making
device
Organizational
identity
Social system
stability
Collective
commitment

Developing an Adaptive Culture
Developing an Adaptive Culture
Early business leaders create an implement a business vision
and strategy that fits the business environment well.
Business leaders emphasize the importance of
constituencies and leadership in creating the success.
Firm succeeds.
A strong culture emerges with a core that emphasizes service to customers,
stockholders, and employees, as well as the importance of leadership.
Subsequent top managers work to preserve the
adaptive core of the culture.
They demonstrate greater commitment to its
basic principles than any specific business
strategy or practice.
CD 3-5
Figure 3-4

Cultural Influences on
Cultural Influences on
Organizational Behavior
Organizational Behavior
CD4-2
Figure 4-1
Organizational
Behavior
Organizational
Culture
Personal
values/ethics
Attitudes
Assumptions
Expectations
Societal
culture
Customs
Language
Economic/
technological
setting
Political/
legal setting
Ethnic
background
Religion
Source: Adapted in part from BJ Punnett and S Withane, Hofstedes Value Survey Module: To Embrace or Abandon?
in Advances in International Comparative Management, vol 5, ed SB Prasad (Greenwich, CT: JAI Press, 1990), pp 69-89.

A Contingency Model for Cross-Cultural Leadership
A Contingency Model for Cross-Cultural Leadership
CD4-5
Table 4-3
Australia
Brazil
Canada
France
Germany*
Country Directive Supportive Participative Achievement
Great Britain
Hong Kong*
Japan
Sweden
United States
Most Culturally Appropriate Leadership Behaviors
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
*Former West Germany **Reunited with China

Foreign Assignment Cycle
Foreign Assignment Cycle
CD4-7
Figure 4-4
1. Selection and
training
Unrealistic expectations
2. Arrival and
adjustment
Culture shock
3. Settling in and
acculturating
Lack of support
4. Returning
home and
adjusting
Reentry shock
Home Country Experiences Foreign Country Experiences
Reassignment

Personality
traits
A Conceptual Model for the Study of
A Conceptual Model for the Study of
Individual Differences in OB
Individual Differences in OB
CD5-2
Figure 5-1
Self Concept
Self-esteem
Self-efficacy
Self-monitoring
The Unique Individual Forms of Self-
Expression
Attitudes
Abilities
Emotions

Determinants and Consequences of
Determinants and Consequences of
Organization-Based Self-Esteem
Organization-Based Self-Esteem
CD5-3
Figure 5-2
Managerial respect
Organizational
structure
Job complexity
Global self-esteem
Job performance
Intrinsic motivation
General satisfaction
Citizenship behavior
Organizational
commitment and
satisfaction
OBSE
Determinants of
OBSE
Factors Influenced
by OBSE

Self-Efficacy
Self-Efficacy
A Model of Self-Efficacy
Sources of Self-Efficacy Beliefs:
- Prior experience
- Behavior models
- Persuasion from others
- Assessment of physical/emotional
state
Self-efficacy: A persons belief about his or her
chances of successfully accomplishing a specific
task.
CD5-4
Figure 5-3

A Model of Behavioral Intention
A Model of Behavioral Intention
CD5-5
Figure 5-4
The persons beliefs
that the behavior leads
to certain outcomes
and his evaluations
of these outcomes
The persons beliefs
that specific
individuals or groups
think he should or
should not perform the
behavior and his
motivation to comply
with the specific referents
Behavior Intention
Attitude toward
the behavior
Relative
importance of
attitudinal and
normative
consideration
Subjective
norm

Performance Depends on the Right
Performance Depends on the Right
Combination of Effort, Ability, and Skill
Combination of Effort, Ability, and Skill
CD5-6
Figure 5-5
Performance
Ability
Effort
Skill

A Model of Ethical Behavior in the
A Model of Ethical Behavior in the
Workplace
Workplace
CD 3-6
Figure 3-7
Cultural Influences
- Family
- Education
-Religion
- Media/entertainment
Organizational Influences
- Ethical codes
- Organizational culture
- Role models
- Perceived pressure for results
- Rewards/punishment system
Individual
- Personality
- Values
- Moral
principles
- History of
reinforcement
- Gender
Political/legal/
economic
influences
Ethical
behavior
R
o
l
e
E
x
p
e
c
t
a
t
i
o
n
s

Social Perception: A Social
Information Processing Model
Information Processing Model
CD 6-2a
Figure 6-1a
Competing
environmental
stimuli:
* People
* Events
* Objects
Interpretation
and
categorization
Stage 1
Selective Attention/
Comprehension
Stage 2
Encoding
and Simplification
A
C
F
A
B
C
D
E
F

Information Processing Model (continued)
Information Processing Model (continued)
CD 6-2b
Figure 6-1b
Stage 3
Storage and
Retention
Stage 4
Retrieval
and Response
Memory
Judgments and
decisions
C

Model of the Self-Fulfilling
Model of the Self-Fulfilling
Prophecy
Prophecy
CD 6-3
Figure 6-2
Supervisor
expectancy
6
3
Motivation
4
Performance
5 1
Leadership
Subordinate
self-
expectancy
2

Consensus
Consensus
CD 6-4a
Figure 6-3a
People
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
People
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
Low High
Source: KA Brown, Explaining Group Poor Performance: an Attributional Analysis, Academy of Management Review, January 1984,
p 56. Used with permission.

Distinctiveness
Distinctiveness
CD 6-4b
Figure 6-3b
Tasks
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
Tasks
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
A B C D E
Low High

Consistency
Consistency
CD 6-4c
Figure 6-3c
Time
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
Time
I
n
d
i
v
i
d
u
a
l

P
e
r
f
o
r
m
a
n
c
e
Low High

Weiners Attribution Model
Weiners Attribution Model
CD 6-5a
Figure 6-4a
Someone
performs
a task
Judgment
of
success
Internal
Factors
External
Factors
self esteem (+)
expectancy of
future
success (+)
pride (+)
shame (+)
depression (+)
Higher
Future
Performance
self esteem (+or+)
expectancy of
future
success (+or+)
pride (+or+)
shame (+or+)
depression (+or+)
Lower to
Higher
Future
Performance
Source: Based in part on B Weiner, An Attributional Theory of Achievement Motivation and Emotion, Psychological Review, October
1985, pp 548-573; and TS Bateman, GR Ferris, and S Strasser, The Why Behind Individual Work Performance, Management Review,
October 1984, p 71.

Weiners Attribution Model (cont.)
Weiners Attribution Model (cont.)
CD 6-5b
Figure 6-4b
Someone
performs
a task
Judgment
of
failure
Internal
Factors
External
Factors
self esteem (+)
expectancy of
future
success (+)
pride (+)
shame (+)
depression (+)
Higher
Future
Performance
self esteem (+or+)
expectancy of
future
success (+or+)
pride (+or+)
shame (+or+)
depression (+or+)
Lower to
Higher
Future
Performance
Source: Based in part on B Weiner, An Attributional Theory of Achievement Motivation and Emotion, Psychological Review, October
1985, pp 548-573; and TS Bateman, GR Ferris, and S Strasser, The Why Behind Individual Work Performance, Management Review,
October 1984, p 71.

A Job Performance Model of Motivation
A Job Performance Model of Motivation
CD 7-2a
Figure 7-1a
Ability, Job knowledge
Dispositions & Traits
Emotions, Moods, &Affect
Beliefs & Values
Individual Inputs
Physical Environment
Task Design
Rewards & Reinforcement
Supervisory Support &
Coaching
Social Norms
Organizational Culture
Job Context
Arousal Attention Intensity
& &
Direction Persistence
Motivational Processes
Motivated
Behaviors
Skills
Enable, Limit

A Job Performance Model of Motivation (cont.)
A Job Performance Model of Motivation (cont.)
CD 7-2a
Figure 7-1b
Individual
Inputs
Job
Context
Motivational
Processes
Focus: Direction, What we do
Intensity: Effort, how hard
we try
Quality: Task strategies, the
way we do it
Duration: Persistence, how
long we stick to it
Skills
Enable, Limit
Performance
Motivated Behaviors

Motivation Theories and
Workplace Outcomes
Workplace Outcomes
CD 7-3a
Figure 7-2a
Choice to pursue
a course of action
Need Reinforcement Equity
Outcome of
Interest
Effort
Performance
Satisfaction
Absenteeism
Turnover
X
X
X
X
X
X
X
X
X
X
X

Workplace Outcomes (continued)
Workplace Outcomes (continued)
CD 7-3b
Figure 7-2b
Choice to pursue
a course of action
Expectancy Goal Setting
Job
Characteristics
Outcome of
Interest
Effort
Performance
Satisfaction
Absenteeism
Turnover
X
X
X
X
X
X
X
X
X
X

CD 7-4
Figure 7-3
Physiological
Most basic
need.
Safety
Consists of
the need to be
safe.
Love
The desire to
love and be
loved.
Esteem
Need for
reputation,
prestige, and
recognition
from others.
Self-
Actualization
Desire for
self-
fulfillment.

Model
Model
CD 7-5a
Figure 7-4a
Motivators

Model (continued)
Model (continued)
CD 7-5b
Figure 7-4b
Hygiene Factors

The Job Characteristics Model
The Job Characteristics Model
CD 7-6
Outcomes
*High internal
work
motivation
*High growth
satisfaction
*High general
job satisfaction
*High work
effectiveness
Critical
psychological
states
*Experienced
meaningfulness of the
work
*Experienced
responsibility for
outcomes of the work
*Knowledge of the actual
results of the work
activities
Core job
characteristics
*Skill variety
*Task identity
*Task
significance
*Autonomy
*Feedback from
job
Moderators
1. Knowledge and skill
2. Growth need strength
3. Context satisfactions

Factors Considered When
Factors Considered When
Making Equity Comparisons
Making Equity Comparisons
CD 8-2
Table 8-1
Inputs Outcomes
Time
Education/training
Skills
Creativity
Seniority
Loyalty to organization
Age
Personality traits
Effort expended
Personal appearance
Pay/bonuses
Fringe benefits
Challenging assignments
Job security
Career advancement/promotions
Status symbols
Pleasant/safe working environment
Opportunity for personal growth/
development
Recognition
Participation in important decisions

A General Model of Vrooms
A General Model of Vrooms
Expectancy Theory
Expectancy Theory
CD 8-3
High Effort
Decision to
Exert Effort
Low Effort
Performance
Goal
Performance
Goal
Expectancy
What are my chances
of reaching my
performance goal
if I work hard?
Expectancy
What are my chances
of reaching my
performance goal
if I slack off?
Instrumentality
What are my chances
of getting various
outcomes if I achieve
my performance goal?
Valence
How much do I value
these outcomes?
Outcome 3
Outcome 2
Outcome 1
Outcome 3
Outcome 2
Outcome 1

Porter and Lawlers Expectancy
Porter and Lawlers Expectancy
Model
Model
CD 8-4
Figure 8-2
1
Value of
Reward
2
Perceived
effort - reward
probability
3
Effort
4
Abilities
and traits
5
Role
perceptions
6
Performance
(accomplishment)
8
Perceived
equitable
rewards
9
Satisfaction
7A
Intrinsic
rewards
7B
Extrinsic
rewards

Goals
Goals
CD 8-5
Figure 8-3
Goal: What an individual is trying to accomplish.
Encouraging the
development of goal-
attainment strategies
or action plans
Increasing
ones persistence
Regulating
ones effort
Directing
ones attention
Goals
motivate the
individual
by...
Task
performance

Guidelines for Writing SMART
Guidelines for Writing SMART
Goals
Goals
Specific
Measurable
Attainable
Results oriented
Time bound
CD 8-6

Feedback and Rewards Are Important
Feedback and Rewards Are Important
Links In the Job Performance Cycle
Links In the Job Performance Cycle
CD9-2
Figure 9-1
Results
Learning
Personal development
Stable, strong job performance
Properly
administered
rewards
Timely and
instructive
feedback
Effort Ability

A Cognitive-Processing Model of Feedback
A Cognitive-Processing Model of Feedback

CD9-3
Figure 9-2
Characteristics
Self-esteem
Self-efficacy
Needs and goals
Desire for performance
feedback
Perception
Sign and content of

feedback message
Cognitive Evaluations
Feedback accuracy
Source credibility
System fairness
Expectations
Behavioral standards
Recipient
Sources
Others
Task
Self
Behavioral
Outcomes
Direction
Effort
Persistence
Resistance

Six Common Trouble Signs
Six Common Trouble Signs
for Organizational Feedback
for Organizational Feedback
Systems
Systems
O
Feedback is used to punish, embarrass, or put down employees
O
Those receiving the feedback see it as irrelevant to their work
O
Feedback information is provided too late to do any good
O
People receiving feedback believe it relates to matters beyond
their control
O
Employees complain about wasting too much time collecting and
recording feedback data
O
Feedback recipients complain about feedback being too
complex or difficult to understand
CD9-4
Table 9-1

Sources and Types of Feedback in
Sources and Types of Feedback in
the 360-Degree Approach
the 360-Degree Approach
CD9-5
Figure 9-3
Direct
supervisor
Peers/team
members
Direct
subordinates
Relevant others such
as customers
and suppliers
Manager/Focus Person
Self-evaluation of:
Planning/administrative/
financial skills
Technical/business skills
Interpersonal skills
Problem-solving skills
Team-building skills
Other relevant skills

General Model of Organizational
General Model of Organizational
Reward Systems
Reward Systems
CD9-6
Figure 9-4
Organizations Reward
Norms
Profit maximization
Equity
Equality
Need
Distribution Criteria
Results
Behavior
Other factors
Types of Rewards
Financial/material
(extrinsic)
Social (extrinsic)
Psychic (intrinsic)
Desired Outcomes
Attract
Motivate
Develop
Satisfy
Retain

Step 2
Perform an
A B C
functional
analysis
Modifying On-the-Job Behavior
Modifying On-the-Job Behavior
CD10-5
Figure 10-3
Step 1
Identify
target
behavior
Step 4
Evaluate
results
Step 3
Arrange Provide
antecedents by supportive and
1. Removing appropriately
obstacles. scheduled
2. Providing consequences.
opportunities.

A Contingency Model for
Selecting a Solution
Selecting a Solution
CD11-2
Figure 11-2
Strategies to
select a solution
* Aided analytic
* Unaided-analytic
* Nonanalytic
Generating
alternatives
Characteristics of Decision Task:
The decision problem
* Unfamiliarity
* Ambiguity
* Complexity
*Instability
The decision environment
*Irreversibility
* Significance
*Accountability
* Time and/or money constraints
Characteristics of Decision Maker
* Knowledge
* Ability
* Motivation
* Decision Making Style

Decision Making Styles
Decision Making Styles
CD11-3
Figure 11-3
Analytical Conceptual
Directive Behavioral
Tasks and Technical
Concerns
People and Social
Concerns
Value Orientation
Low
High
T
o
l
e
r
a
n
c
e

f
o
r

A
m
b
i
g
u
i
t
y

Escalation of Commitment
Escalation of Commitment
CD11-4
Figure 11-4
Psychological and Social
Determinants
* Ego defense
* Individual motivators
* Peer pressure
* Saving face
Organizational Determinants
* Breakdown in communication
* Politics
* Organizational inertia
Project Characteristics
* A delayed return on the investment
* Setbacks attributed to temporary
causes
Contextual Determinants
* External political pressure
Escalation
of
commitment
Poor results
or
outcomes

A Model of Participative Management
A Model of Participative Management
CD11-6
Participation in
Goal Setting
Participation in
Decision Making
Participation in
Problem Solving
Participation in
Change
Contingency
Factors
* Design of work
* Trust
* Readiness to Participate
Autonomy
Increased
control over work
behavior
Completion of
Meaningful
Tasks
Acceptance
and Commitment
Security
Challenge
Satisfaction
Performance
and Innovation

Vroom and Jagos Decision-
Vroom and Jagos Decision-
Making Model
Making Model
CD11-7
Figure 11-4
QR
State the
Problem
CR
CP
Low Low
High
CR
LI
LI
No
Yes
ST
ST
CP
CP
CP
H
i
g
h
H
i
g
h
Y
e
s
No
No
Yes
No
GC
GC
GC
GC
Y
e
s
CO
Y
e
s
N
o
No
CO
Yes
SI
SI
AI
GII
CII
GII
CII
AII
CI
CII
AI
GII
Yes
No
Yes
N
o
N
o
Yes
Y
e
s
N
o
No
No
Yes
N
o
Yes
L
o
w
N
o
N
o
Yes
QR
CR
LI
ST
CP
GC
CO
SI
Quality Requirement
Commitment Requirement
Leaders Information
Problem Structure
Commitment Probability
Goal Congruence
Subordinate Conflict
Subordinate
Information

A Model of Organizational Creativity
A Model of Organizational Creativity
and Innovation
and Innovation
CD11-8
Figure 11-7
Individual Characteristics
Intellectual abilities
Tacit (implied) and explicit knowledge
Styles of thinking
Personality traits
Intrinsic task motivation
Group Characteristics
- Norms - Diversity
- Cohesiveness - Roles
- Size - Problem-solving approaches
Organizational Characteristics
- Culture - Strategy
- Resources - Structure
- Rewards - Technology
Individual creative
behavior/performance
Group creative
behavior/performance
Organizational
creativity and
innovation

Groups
Groups
CD12-2
Figure 12-1
1
Two or more
freely
interfacing
individuals
Common
identity
4
3
Collective
goals
Collective
norms
2

Functions of Formal Groups
Functions of Formal Groups
CD12-3
Table 12-1
Organizational Functions Individual Functions
1. Accomplish complex, interdependent
tasks that are beyond the capabilities
of individuals.
2. Generate new or creative ideas and
solutions.
3. Coordinate interdepartmental efforts.
4. Provide a problem-solving mechanism
for complex problems requiring
varied information and assessments.
5. Implement complex decisions.
6. Socialize and train newcomers.
1. Satisfy the individuals need for
affiliation.
2. Develop, enhance, and confirm the
individuals self-esteem and sense of
identity.
3. Give individuals an opportunity to
test and share their perceptions of
social reality.
4. Reduce the individuals anxieties and
feelings of insecurity and powerless-
ness.
5. Provide a problem-solving mechanism
for personal and interpersonal problems.

Tuckmans Five-Stage Theory
of Group Development
of Group Development
CD12-4a
Figure 12-2a
Performing
Adjourning
Norming
Storming
Forming
Return to
Independence
Dependence/
Interdependence
Independence

of Group Development (continued)
of Group Development (continued)
CD12-4b
Figure 12-2b
Individual
Issues
Forming Storming Norming Performing
How do I fit
in?
Whats my
role here?
What do the
others expect
me to do?
How can I best
perform my
role?
Group
Issues
Why are we
here?
Why are we
fighting over
whos in
charge and who
does what?
Can we agree
on roles and
work as a
team?
Can we do the
job properly?

A Role Episode
A Role Episode
Role Sender
Perceived organizational/
group requirements
Comparative evaluation of
- Role expectations for
focal person
- Focal persons behavior
Focal Person
Perceived role expectations
Experienced role overload,

role conflict, role ambiguity
Constructive/destructive
responses
Role
Modeling
Communication
of approval
or need for
change
Feedback
CD12-5
Figure 12-3

Ability of Israeli Tank-Crew Members and
Ability of Israeli Tank-Crew Members and
Improvements in Effectiveness
Improvements in Effectiveness
CD12-6
Figure 12-4
High-high-high
ability tank crews
Higher than expected
effectiveness
High-high-low or
high-low-low ability
tank crews
Low-low-low
ability tank crews
Lower than expected
effectiveness
Large increase in
effectiveness
Small increase in
effectiveness

Staffing Work Groups
Staffing Work Groups
CD12-7
Figure 12-5
Improve performance
of all work groups
Train and develop

new talent
Maximize performance
of best group(s)
Staffing
decision
Concentrate
talent
Spread talent
around
Objective(s)

Interpersonal Trust Involves a
Interpersonal Trust Involves a
Cognitive Leap
Cognitive Leap
CD13-4
Figure 13-3
Firsthand knowledge
of other persons
reliability and
integrity
Distrust Trust
Cognitive leap
Faith in the other persons
good intentions
Assumption that other person
will behave as desired

Basic Distinctions Among
Quality Circles, Virtual Teams and
Self-Managed Teams
Self-Managed Teams
CD13-5a
Table 13-5a
Quality Circles Virtual Teams
Self-Managed
Teams
Type of team
(see Table 13-2)
Type of
empowerment
(see Table 16-2)
Members
Advice
Advice or project
(usually project)
Production,
project, or action
Consultation
Consultation,
participation,
or delegation
Delegation
Production/service
personnel
Managers are
technical
specialists
Production/service,
technical
specialists

Self-Managed Teams (continued)
Self-Managed Teams (continued)
CD13-5b
Table 13-5b
Quality Circles Virtual Teams
Self-Managed
Teams
Basis of
membership
Relationship to
organization
Amount of face-
to-face
communication
Voluntary
Assigned
(some voluntary)
Assigned
Parallel
Parallel or
integrated
Integrated
Strictly face-
to-face
Periodic to
none
Varies, depending
on use of
information
technology

Survey Evidence: What Self-
Survey Evidence: What Self-
Managing Teams Manage
Managing Teams Manage
CD13-6
Table 13-6
Percentage of Companies Saying Their Self-Managing Teams
Perform These Traditional Management Functions by Themselves.
Schedule work assignments 67%
Work with outside customers 67
Conduct training 59
Set production goals/quotas 56
Work with suppliers/vendors 44
Purchase equipment/services 43
Develop budgets 39
Do performance appraisals 36
Hire co-workers 33
Fire co-workers 14

The Evolution of Self-Managed
The Evolution of Self-Managed
Work Teams
Work Teams
CD13-7
Figure 13-4
Managerial control of groups
structure, staffing, and task
procedures
Group control of its own
structure, staffing, and
task procedures
Traditional
Work Groups
Semiautonomous
Work Groups
Self-Managed
Teams

An Updated Contact Model for
An Updated Contact Model for
Minimizing Intergroup Conflict
Minimizing Intergroup Conflict
CD14-3
Figure 14-2
Conflict within the

group is high
There are negative

interactions between
groups (or between
members of those
groups)
Influential third-party
gossip about other group
is negative
Work to eliminate specific negative

interactions between groups (and
members).
Conduct team building to reduce

intragroup conflict and prepare
employees for cross-functional teamwork.
Encourage personal friendships and

good working relationships across
groups and departments.
Foster positive attitudes toward
members of other groups (empathy,
compassion, sympathy).
Avoid or neutralize negative gossip

across groups or departments.
Recommended actions:
Level of perceived
intergroup conflict tends
to increase when:

Stimulating Functional Conflict
Stimulating Functional Conflict
CD14-4a
Figure 14-3a
A Devils Advocate Decision Program The Dialectic Decision Method
1
A proposed course of action
is generated.
1
A proposed course of action
is generated.
2
A devils advocate (individual
of group) is assigned to
criticize the proposal.
2
Assumptions underlying the
proposal are identified.
3
The critique is presented
to key decision makers.
3
A conflicting counter-
proposal is generated based
on different assumptions.

Stimulating Functional
Stimulating Functional
Conflict (continued)
Conflict (continued)
CD14-4b
Figure 14-3b
A Devils Advocate Decision Program The Dialectic Decision Method
6
The decision is monitored.
6
The decision is monitored.
4
Any additional information
relevant to the issues is
gathered.
4
Advocates of each position present
and debate the merits of their
proposals before key decision makers.
5
The decision to adopt, modify,
or discontinue the proposed
course of action is taken.
5
The decision to adopt either
position, or some other position,
e.g., a compromise, is taken.

Five Conflict-Handling Styles
Five Conflict-Handling Styles
CD14-5
Figure 14-4
Integrating Obliging
Dominating Avoiding
Compromising
High Low
High
Low
C
o
n
c
e
r
n

f
o
r

O
t
h
e
r
s
Concern for Self
Source: MA Rahim, A Strategy for Managing Conflict in Complex Organizations, Human Relations, January 1985, p 84. Used with
authors permission.

A Perceptual Model of Communication
A Perceptual Model of Communication
CD15-2
Figure 15-1
Noise
Sender
Receiver
decodes
Receiver
creates
meaning
Transmitted
on medium
Message Encoding
Encoding Message
Transmitted
on medium
Source
decodes

Messages Sent and Received by
Messages Sent and Received by
Communication Medium
Communication Medium
0
10
20
30
40
50
60
70
T
e
l
e
p
h
o
n
e
E
-
M
a
i
l
V
-
M
a
i
l
P
o
s
t
.

M
a
i
l
I
n
t
e
r
-
O
f
f
i
c
e

M
a
i
l
F
a
x
P
o
s
t
-
I
t
P
h
o
n
e

M
e
s
s
a
g
e
s
P
a
g
e
r
C
e
l
l

P
h
o
n
e
O
v
e
r
n
i
g
h
t
E
x
p
r
e
s
s

M
a
i
l
T
o
t
a
l
201
CD15-3
Figure 5-2

A Contingency Model for Selecting
A Contingency Model for Selecting
Communication Media
Communication Media
CD15-4
Figure 15-4
Low
Low
R
i
c
h
n
e
s
s

o
f

C
o
m
m
u
n
i
c
a
t
i
o
n

M
e
d
i
u
m
High
Complexity of Problem/Situation
High
Z
o
n
e

o
f

e
f
f
e
c
t
i
v
e

c
o
m
m
u
n
i
c
a
t
i
o
n
Overload zone
(medium provides
more information
than necessary)
Oversimplification zone
(medium does not
provide necessary
information)
Formal
numeric
Formal
written
Personal
written
Telephone
Face-to-face

Communication Competence Affects
Communication Competence Affects
Upward Mobility
Upward Mobility
CD15-5
Figure 15-5
Situational
Factors
Company
philosophy
on openness
Company policy
and procedures
Organizational
climate
Geographic
location of
organization
Communication
Abilities/Traits
Cross-cultural
awareness
Assertiveness
Aggressiveness
Defensiveness
Active listening
Individuals
Involved
A friend
Someone you do
not trust
A superior
A subordinate
Communication
competence
Upward
mobility

Communication Differences
between Women and Men
between Women and Men
CD15-6a
Table 15-3a
Linguistic
Characteristic
Men Women
Taking
Credit
Greater use of I statements
(e.g., I did this and I did
that); more likely to boast
about their achievements
Greater use of We
statements (e.g., We did
this and We did that);
less likely to boast about
their achievements
Displaying
Confidence
Less likely to indicate that
they are uncertain about an
issue
More likely to indicate a lack
of uncertainty about an
issue

between Women and Men (continued)
CD15-6b
Table 15-3b
Linguistic
Characteristic
Men Women
Asking
questions
Less likely to ask questions
(e.g., asking for directions)
More likely to ask questions
Conversation
Rituals
Avoid making apologies
because it puts them in a
one-down position
More frequently say Im
sorry

CD15-6c
Table 15-3c
Linguistic
Characteristic
Men Women
Giving
feedback
More direct and blunt
More tactful; tend to
temper criticism with praise
Giving
compliments
Stingy with praise
Pay more compliments
than men
Indirectness
Indirect when it comes to
admitting fault or when they
dont know something
Indirect when telling others
what to do

CD17-2
Figure 17-2
High structure,
high consideration
The leader provides a lot of guidance
about how tasks can be completed
while being highly considerate of
Low structure,
high consideration
Less emphasis is placed on
structuring employee tasks while the
leader concentrates on satisfying
High structure,
low consideration
Primary emphasis is placed on
structuring employee tasks while
the leader demonstrates little
and wants.
Low structure,
low consideration
The leader fails to provide necessary
structure and demonstrates little
and wants.
Low High
Initiating Structure
Low
High
C
o
n
s
i
d
e
r
a
t
i
o
n

The Leadership Grid
The Leadership Grid
CD17-3
Figure 17-3
Low 1 2 3 4 5 6 7 8 9 High
High
9
8
7
6
5
4
3
2
1
Low
C
o
n
c
e
r
n

f
o
r

P
e
o
p
l
e
1,1
Impoverished
management
1, 9
Country club
management
5,5
Middle-of-the
road management
9,9
Team
management
9,1
Authority-
compliance
Source: From Leadership Dilemmas - Grid Solutions, p 29 by Robert R Blake and Anne Adams McCanse.
Copyright 1991 by Robert R Blake and the estate of Jane S Mouton. Used with permission. All rights reserved.
Concern for Production

CD17-4
Figure 17-4
Contingency Model
Contingency Model
Situational
Control
High Control
Situations
Moderate
Control Situations
Low Control
Situations
Leader-member
relations
Task Structure
Position Power
Good Good Good
High High High
Strong Weak Strong
Good Poor Poor
Low High High
Weak Strong Strong
Poor Poor
Low Low
Strong Weak
Situation I II III IV V VI VII VIII
Optimal
Leadership
Style
Task Motivated
Leadership
Relationship
Motivated Leadership
Task Motivated
Leadership

CD17-5
Figure 17-5
Employee Characteristics
- Locus of control
- Task ability
- Need for achievement
- Experience
- Need for clarity
Environmental Factors
- Employees task
- Authority system
- Work group
Leadership Styles
- Directive
- Supportive
- Participative
- Achievement oriented
Employee Attitudes
and Behavior
- Job satisfaction
- Acceptance of leader
- Motivation

Selling
S2
Explain decisions and
provide opportunity for
clarification
Hersey and Blanchards
Hersey and Blanchards
Situational Leadership Theory
Situational Leadership Theory
Participating
S3
Share ideas and
facilitate in
decision making
CD17-6
Figure 17-6
Follower-Directed Leader-Directed
Low
Low
High
High
Leader Behavior
Task Behavior
Follower Readiness
High Moderate Low
R4 R3 R2 R1
R
e
l
a
t
i
o
n
s
h
i
p

B
e
h
a
v
i
o
r
(
s
u
p
p
o
r
t
i
v
e

b
e
h
a
v
i
o
r
)
Delegating
S4
Turn over
responsibility for
decisions and
implementation
Telling
S1
Provide specific
instructions and closely
supervise performance

Organizational
culture
Leader
behavior
Effects on
followers and
work groups
Outcomes
CD17-7a
Figure 17-7a
Adaptive
Leader
establishes a
vision
Leader
establishes high
performance
expectations and
displays
confidence in
him/herself and
the collective
ability to
realize the vision
Increased
intrinsic
motivation,
achievement
orientation, and
goal pursuit
Increased
identification
with the leader
and the
collective
interests of
organizational
members
Personal
commitment
to leader
and vision
Self-
sacrificial
behavior
Organiza-
tional
commitment
Task
meaningful-
ness and
satisfaction

A Model of Occupational Stress
A Model of Occupational Stress
CD18-2
Figure 18-1
Individual Level
Group Level
Organizational
Level
Extraorganizational
Behavioral
Cognitive
Physiological
Stressors Outcomes
Stress
Individual
Differences

Burnout
Burnout
CD18-3a
Figure 18-2
Burnout: a condition of emotional exhaustion and negative attitude.
Personal Stressors
Job and Organizational
Stressors
Emotional Exhaustion
Depersonalization
Feeling a Lack Of
Personal Accomplishment
Attitudinal and
Behavioral
Symptoms
A Model of Burnout

A Model of Social Support
A Model of Social Support
CD18-4
Figure 18-3
Social Support: the amount of helpfulness derived from social
relationships.
Potential stressful event
Perceived availability of
support resources
Purpose of support
Engage support
Effect of social support on
reducing stress and stress outcomes
Support
not perceived
Support
perceived
but not
used
and used

A Model of the Coping Process
A Model of the Coping Process
CD18-5
Figure 18-4
Coping: the process of managing stress.
Situational Situational
factors
Personal
factors
Cognitive
appraisal of
stressor
Harmful?
Threatening?
Challenging?
Coping
strategies
Control
Escape
Symptom
Management

Four Characteristics Common To All
Four Characteristics Common To All
Organizations
Organizations
CD19-2
Figure 19-1
The McGraw-Hill Companies, Inc.,
2000
Hierarchy of
authority
Coordination
of effort
Division
of labor
Common
goal

Sample Organization Chart
for a Hospital
for a Hospital
CD19-3a
Figure 19-2a
2000
Board of Directors
Chief Executive
Officer
Strategic
Planning
Advisor
Legal
Counsel
President
Cost-
Containment
Staff
Executive
Administrative
Staff
Executive
Medical
Director

for a Hospital (continued)
for a Hospital (continued)
CD19-3b
Figure 19-2b
2000
Executive
Administrative
Staff
Executive
Medical
Director
Dir.
Of
Human
Resources
Dir.
Of
Admissions
Dir.
Of
Accounting
Dir.
Of
Nutrition
& Food
Services
Dir.
Of
Patient
& Public
Relations
Dir.
X-Ray &
Lab
Services
Dir.
Of
Surgery
Dir.
Of
Pharmacy
Chief
Physician
Dir.
Of
Out-
Patient
Serices

The External and Internal Forces
The External and Internal Forces
for Change
for Change
CD20-2
Figure 20-1
Demographic Characteristics
*Age *Education
* Skill level *Gender
* Immigration
Technological Advancements
* Manufacturing automation
* Office automation
Market Changes
* Mergers and acquisitions
* Domestic and international competition
* Recession
Social and Political Pressures
*War *Values
* Leadership
External Forces
Human Resource Problems/Prospects
*Unmet needs *Job dissatisfaction
*Productivity *Participation/
*Absenteeism and suggestions
turnover
Managerial Behavior/Decisions
* Conflict * Leadership
* Reward systems * Structural
reorganization
Internal Forces
The need for change

A Generic Typology of
A Generic Typology of
CD20-3
Figure 20-2
Adaptive
change
Innovative
change
Radically
innovative
change
Reintroducing a
familiar practice
Introducing a
practice new to the
organization
Introducing a
practice new to
the industry
Low High
Degree of complexity, cost

and uncertainty
Potential for resistance to

change

A Systems Model of Change
A Systems Model of Change
CD20-4
Figure 20-3
Target Elements of Change
Organizing
Arrangements
Goals
Social
Factors
Methods
People
Internal
* Strengths
* Weaknesses
External
* Opportunities
* Threats
* Organizational
Level
* Department/
group level
* Individual
level
Inputs Outputs
S
t
r
a
t
e
g
y

An Introduction To Management

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An Introduction to Management

Managing and the Managers Job

Traditional and Contemporary Issues and

Philip Knight CEONike

Carly Fiorina CEOHP

Mikio Sasaki President Mitsubishi

Sir David Wilson Director British Museam

George W Bush President USA

John Pope II Pope Ruman Catholic Charch

Howard Schultz CEOStarbuck

Marriot International Hotel Chain

CEO: J.W.(Bill) Marriot

Half million rooms, under construction 60000 rooms,

Suffered more than Hilton and Starwood (Sheraton,

Flexibility in SOP, soothe worried franchisers,

Profit Starbucks Corp

Discovery of Knowledge University

National Defense Army

Coordination of local charities United way of America

Social Satisfaction Sorority

A group of people working together in a structured

Efficient: Using resources wisely and cost-effective

Effective: Making the right decision and successfully

Manger: Someone whose primary responsibility is to

The Management Process

Basic Managerial Roles and Skills

The Nature of Managerial work

The New Workplace

Planning and Decision making

Planning: Setting an organizations goal and

Decision making: Part of planning process

Example: Carly Fiorina of HP in 1999,

Organizing: Determining how activities and

Example: Carly Fiorina of HP

Leading: The set of processes used to get

Example: Carly Fiorina of HP

Controlling: Monitoring organizational

Example: Nasa with rocket, Fiorina in HP by

Designation: president, Vice President, CEO

Function: Create the organizational goals, overall

Time involvement: much in meeting and in

Salary: Well paid

Example: Howard Schultz of Starbucks

Common titles: Plant mangers, operation managers

Functions: Implementing policies and plans

Recent development: Thin the rank of middle

Responsibility: supervise and coordinate the

Common titles: Supervisor, coordinators and

Time spending: on supervising.

Promotion from: Operating personnel.

Marketing function- Getting consumers and

Area: New product development, promotion

Example: Carly Fiorina

Dealings: Deal with finacial resources.

Responsibity: Accounting, cash management

Large numbers in banking and insurance.

Stanley ONeil of Merril Lunch

Main task : Creating and managing the

Responsibilities: Production control, Inventory

HR Mangers: Hiring and developing employees

Administrative managers: Generalists. Clinics and

Public relation manager: Philip Morris Company, The