Organizational Structure

Chain of Command
The vertical line of authority in an organization Clarifies who reports to whomUnity of command.

Delegation of Authority
The assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

How to be a More Effective Delegator

1. Trust your staff to be a good job
2. Avoid seeing perfection
3. Give effective job instructions
4. Know your true interests
5. Follow up on progress.
6. Praise the efforts of your staff.
7. Don’t wait to the last minute to delegate.
8. Ask questions, expect answers, assist employees.
9. Provide the resources you would provide if doing the assignment yourself.
10. Delegate to the lowest possible level.

Degree of Centralization

• Centralization of authority primary authority is held by upper management
• Decentralization significant authority is found in lower levels of the organization
• Standardization solving problems by applying rules, procedures, and processes.

Job Specialization

• A job that is a small part of a larger task or process
• Jobs are simple, easy to learn, and economical
• Can lead to low satisfaction, high absenteeism, & employee turnover

Job Rotation, Enlargement, and Enrichment
Job Rotation
periodically moving workers from one specialized job to another

Job Enlargement
increasing the number of tasks performed
by a worker

Job Enrichment
adding more tasks and authority to an employee’s job.

Job Characteristics Model
A job redesign approach that seeks to increase employee motivation.

Emphasizes internal motivation

• experience work as meaningful
• experience responsibility for work outcomes
• knowledge of results

Job Redesign Techniques

• Combining Tasks
• Forming Natural Work Units
• Establishing Client Relationships
• Vertically Loading the Job
• Opening Feedback Channels.

Reengineering

• The fundamental rethinking and radical redesign of business processes
• Intended to achieve dramatic improvements in performance
• Change the orientation from vertical to horizontal
• Changes task interdependence.

Do the Right Thing
Don’t Scavenge That Office If Somebody Is Still in It
It’s roadkill in the animal kingdom:

• coworkers scavenge for office leftovers…often before an employee leaves
• Do the right thing by maintaining the dignity of departing coworkers: wait until the office is empty.

Modular Organizations
Advantages:

• can cost less to run than traditional organizations
• lets organizations focus on core competencies

Disadvantages

• loss of control from outsourcing
• may reduce their competitive advantage.

Virtual Organizations
Advantages:
let companies share costs fast and flexible
being the “best” should
provide better products

Disadvantages:
difficult to control the quality of partners
requires tremendous management skills.

Ethical and Unethical Workplace Behavior

Ethics and the Nature of Management Jobs
Unethical Managerial Behavior

• Authority and Power
• Handling Information
• Influencing the Behavior of Others
• Setting Goals.

Managers can encourage ethical behaviors by…

• using resources for company business only
• handling information confidentially
• not influencing others to engage in
• unethical behavior
• not creating policies that reward employees
• for unethical behavior
• setting reasonable goals

Workplace Deviance
Unethical behavior that violates organizational norms about right and wrong

Two dimensions

1. Degree of deviance
2. Target of deviant behavior.

Production Deviance

• Leaving early
• Taking excessive breaks
• Intentionally working slow
• Wasting resources

Property Deviance

• Sabotaging equipment
• Accepting kickbacks
• Lying about hours worked
• Stealing from company

Political Deviance

• Showing favoritism
• Gossiping about coworkers
• Blaming coworkers
• Competing nonbeneficially

Personal Aggression

• Sexual harassment
• Verbal abuse
• Stealing from coworkers
• Endangering coworkers

Ethical Intensity Depends on…

1. Magnitude of consequences
2. Social consensus
3. Probability of effect
4. Proximity of effect
5. Concentration of effect

Principles of Ethical Decision Making

• Long-term self-interest
• Personal virtue
• Religious injunctions
• Government requirements
• Utilitarian benefits
• Individual rights
• Distributive justice.

Practical Steps to Ethical Decision Making

• Select and hire ethical employees
• Establish a Code of Ethics
• Train employees to make ethical decisions
• Create an ethical climate.

Doing the Right Thing
If You Cheat in College,
Will You Cheat in the Workplace?

• College students who cheat are likely to cheat again.
• 70 percent of students don’t see cheating as a problem.
• People who cheat and cheat again see their behavior as normal.
• 60 percent of people who cheat their employers don’t feel guilty for doing so.

Ethics Question

• What are your personal ethics?
• What are your organization’s ethics?
• What are the ethics of your industry?
• What are society’s ethics?
• What are global ethics?

Practical Steps to Ethical Decision Making

• Communicate code of ethics to both insideand outside the company
• Develop ethical standards and procedure specific to business.

Ethics Training

• Develops employee awareness of ethics
• Achieves credibility with employees
• Teaches a practical model of ethical decision making.

A Basic Model of Ethical Decision Making
1. Identify the problem
2. Identify the constituents
3. Diagnose the situation
4. Analyze your options
5. Make your choice
6. Act.

Changing Environments

Characteristics of Changing External Environments

• Environmental Change
• Environmental Complexity
• Resource Scarcity
• Uncertainty

Environmental Change
Environmental Change is the rate at which a company’s environments change

• stable environments
• dynamic environments

Punctuated equilibrium theory
Companies cycle through long, stable periods and shorter, dynamic environments.

Environmental Complexity
Environmental Complexity: the number of external factors in the environment that affect organizations

Resource Scarcity
The degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources.

Components of the General Environment

• Economy
• Technological trends
• Sociocultural trends
• Political / Legal trends.

Economy

• Growing vs. shrinking economies
• Predicting future economic activity
• Business confidence indices.

Impact of Technology
Technology can be a great benefit or a daunting threat. MP3 players have created a tremendous new business opportunity for some, like Apple, Creative, and other manufacturers. But record labels have suffered from the rapid acceptance of digital music and persistent file swapping.

Sociocultural Component

• Demographic changes
• Changes in behavior, attitudes, and beliefs

Political / Legal Component

• Legislation
• Regulations
• Court decisions

Managers must be educated about the laws, regulations, and potential lawsuits that could affect business.

Specific Environment

• Customer
• Competitor
• Supplier
• Industry Regulation
• Advocacy Group.

Customer Component

• Reactive customer monitoring responding to problems, trends, and events.
• Proactive customer monitoring anticipating problems, trends, and events.

Monitoring customer wants and needs is critical for business success.

Competitor Component
Competitive Analysis

• Deciding who your competitors are
• Anticipating competitors’ moves
• Determining competitors’
• strengths and weaknesses

Industry Regulation Component
Consists of regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions.

Guidelines to Avoid Conflicts of Interest

• There’s no such thing as a free lunch
• Meals and entertaining are valid business
• No gifts worth more than $25 in value
• No cash or cash equivalents
• No discount on goods and services
• No stock in suppliers’ companies
• Don’t allow personal friendship to
• influence decisions.

Human Relations Management

Mary Parker Follett
Mary Parker Follett is known today as the “mother of scientific management." Her many contributions to modern management include the ideas of negotiation, conflict resolution, and power sharing.

Frederick W. Taylor
Frederick Taylor is known today as the "father of scientific management." One of his many contributions to modern management is the common practice of giving employees rest breaks throughout the day.

Taylor’s Four Management Principles

1. Develop a science for each element of a man’s work, which replaces the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the workman.
3. Cooperate with the men to insure all work is done in accordance with the principles of the science.
4. There is almost equal division of the work and the responsibility between management and workmen.

Frank & Lillian Gilbreth
Frank and Lillian Gilbreth were prolific researchers and often used their family as guinea pigs. Their work is the subject of Cheaper by the Dozen, written by their son and daughter.

Motion Studies: Frank & Lillian Gilbreth
Time Study
Timing how long it takes good workers to complete each part of their jobs.

Motion Study
Breaking each task into its separate
motions and then eliminating those that are unnecessary or repetitive.

General Administrative Theorists
Henri Fayol

• Believed that the practice of management was distinct from other organizational functions
• Developed fourteen principles of management that applied to all organizational situations.

Bureaucratic Management
Bureaucracy
The exercise of control on the basis of knowledge, expertise, or experience.

The Aim of Bureaucracy
1. Qualification-based hiring
2. Merit-based promotion
3. Chain of command
4. Division of labor
5. Impartial application of rules and procedures
6. Recorded in writing
7. Managers separate from owners.

Administrative Management:
Henri Fayol
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps.

Operations Management Tools

1. Quality control
2. Forecasting techniques
3. Capacity planning
4. Productivity measurement and improvement
5. Linear programming
6. Scheduling systems
7. Inventory systems
8. Work measurement techniques
9. Project management
10. Cost-benefit analysis.

Information Management
Milestones in information management:
1400s Horses in Italy
1500-1700 Creation of paper and the printing press
1850 Manual typewriter
1860s Vertical file cabinets and the telegraph
1879 Cash registers
1880s Telephone
1890s Time clocks
1980s Personal computer
1990s Internet .

Systems management

• System is a set of interrelated elements or parts that function as a whole
• Closed systems can sustain themselves without interacting with their environments
• Open systems sustain themselves by interacting with their environments.

Contingency Management
Contingency Approach
Holds that the most effective management theory or idea depends on the kinds of
problems or situations that managers are facing at a particular time and place.

Contingency Management

• Management is harder than it looks
• Managers need to look for key contingencies that differentiate today’s situation from yesterday’s situation
• Managers need to spend more time analyzing problems before taking action
• Pay attention to qualifying phrases, such as “usually”.

Current Trends and Issues

• Globalization
• Ethics
• Workforce Diversity
• Entrepreneurship
• E-business
• Knowledge Management
• Learning Organizations
• Quality Management.

Operations Management

Operations Management
Managing the daily production of goods and services.

Why Productivity Matters

• Increased wages and new jobs
• More donations to charities
• More affordable and better product.

Serviceability
Reva uses computer diagnostic system that can sync to the owner’s cell phone, indicating the type of service the vehicle needs.

Total Quality Management

• Customer focus and satisfaction
• Continuous improvement
• Teamwork.

Service Recovery and Empowerment
Service recovery is restoring customer satisfaction to strongly dissatisfied customers

• Fixing the mistakes that were made
• Performing “heroic” service that delights customers.

Empowering workers can help solve customer
dissatisfaction

• The goal is zero customer defections.

Doing the Right ThingProtect Your Front-Line Staff:
The Customer Isn’t Always Right:

• Fire customers who use foul language, make threats against employees or other customers, lie, demand unethical or illegal service, bully, or are belligerent
• Otherwise, you are saying you care more about money than the safety of people in the business.

Costs of Empowering Service Employees
1. Finding service workers capable of solving problems
2. Training service workers
3. Higher wages
4. Less emphasis on service reliability
5. Eagerness to provide “giveaways”
6. Unintentional unfair customer treatment.

Benefits of Empowering Service Employees
1. Quicker response to customer complaints
2. Employees feel better
3. Enthusiastic employee interaction with customers
4. Employees offer ideas for improvement and prevention
5. Great word-of-mouth advertising and customer retention
6. Satisfied employees more likely to stay with company.

Amount of Processing inManufacturing Operations
Make-to-order operations

• manufacturing doesn’t begin until an order is placed

Assemble-to-order operations

• used to create semi-customized products

Make-to-stock operations

• manufacture standardized products.

Planning

Planning
Choosing a goal and developing a method of strategy to achieve that goal.

Why Do Managers Plan?

• Provides direction
• Reduces uncertainty
• Minimizes waste and redundancy
• Sets the standards for controlling.

How to Make a Plan That Works

1. Set Goals
2. Develop Commitment
3. Develop Effective Action Plans
4. Track Progress Toward Goal Achievement
5. Maintain Flexibility.

Setting Goals

1. Specific
2. Measurable
3. Attainable
4. Realistic
5. Timely.

Developing Commitment to Goals
The determination to achieve a goal is increased by:

• Setting goals participatory
• Making goals reasonable
• Making goals public
• Obtaining top management support.

Limits to Rational Decision Making
Bounded Rationality
A decision-making process restricted in the real world by:

• limited resources
• incomplete and imperfect information
• managers’ limited decision-making capabilities

Group Decision Making
Advantages

1. View problems from multiple perspectives
2. Find and access more information
3. Generate more alternative solutions
4. More committed to making chosen solutions work.

Disadvantages

1. Susceptible to groupthink and to considering a
2. limited number of solutions
3. Takes considerable time
4. One or two people can dominate group discussion
5. Members don’t feel personally accountable
6. for decisions and actions.

Groupthink
Groupthink is likely to occur when…

• The group is insulated from others with different
• perspectives
• The group leader expresses a strong preference
• for a particular decision
• There is no established procedure for defining
• problems and exploring alternatives
• Group members have similar backgrounds.

Perception and Communication Problems

Perception
The process by which individuals attend to, organize, interpret, and retain information from their environments.

Perception Filters
The personality-, psychology-, or experienced-based differences that influence people to ignore or pay attention to particular stimuli.

Perception Problems
Selective perception.
notice and accept stimuli which are consistent with our values and beliefs
ignore inconsistent stimuli.

Closure
tendency to fill in the gaps when information is missing.
we assume that what we don’t know is consistent with what we do know.

Self-Perception
Self-Serving Bias
The tendency to overestimate our value by attributing successes to ourselves (internal causes) and attributing failures to others or the environment (external causes).

The Communication Process
Noise occurs if:

1. The sender is unsure what message to communicate
2. The message is not clearly encoded
3. The wrong channel is chosen
4. The message is improperly decoded
5. The receiver lacks experience
6. or time.

Meanings of the Word Fine:

1. Penalty
2. Excellence
3. Tight
4. Small
5. Pure
6. Flimsy
7. Okay.

Formal Communication Channels

1. The system of official channels
2. Downward communication, top down
3. Upward communication, bottom up
4. Horizontal, within a level.

Improving Formal Communication

1. Decrease reliance on downward communication
2. Increase chances for upward communication
3. Encourage much greater use of horizontal communication
4. Be aware of communication problems.

Common Problems with Downward, Upward, and Horizontal Communication
Downward

• Sending too many messages
• Issuing contradictory messages
• Hurriedly communicating vague, unclear messages
• Issuing messages indicating management’s low regard for lower-level workers.

Upward

• Risk of telling upper management about problems
• Managers acting angrily and defensively to problems
• Few opportunities for workers to contact upper levels of management.

Horizontal

• Management discouraging or punishing horizontal communication
• Managers and workers not given time or opportunity for horizontal communication
• Not enough opportunities or channels for lower-level workers to engage in horizontal communication.

Informal Communication Channels

• Transmitting messages outside the formal communication channels
• The “Grapevine”
• Highly accurate; information is timely, senders seek feedback, accuracy can be verified.

Managing Organizational Grapevines

• Don’t withhold information from it
• Don’t punish those who use it
• Embrace the grapevine and keep employees informed
• Use it as a source of information.

Informal Communication Channels
Dealing with Internet Gripe Sites
1. Correct misinformation
2. Don’t take angry comments personally
3. Give your name and contact number
4. Hold a town meeting to discuss issues
5. Set up anonymous discussion forums.

Doing the Right Thing
Protect Personal, Confidential Information

• Managers are privy to personal and
• confidential information about employees
• There is a moral and legal obligation to
• protect employees’ privacy
• Information about discrimination, sexual harassment,
• potential workplace violence, or conflicts of interest
• may need to be shared.

Perception and Communication Problems

Perception

The process by which individuals attend to, organize, interpret, and retain information from their environments.

Effort and Performance

Doing the Right Thing
Faking It, Not Making It

• With technology, you may be tempted to
• look like you’re working hard when you aren’t
• But, you’re usually leaving “tracks” and
• “footprints” along the way
• Motivation is all about effort. Work hard for
• your company, your customers, and yourself.

Need Satisfaction
Needs

• physical or psychological requirements
• must be met to ensure survival and well being
• Unmet needs motivate people.

Extrinsic Rewards
motivate people to:

• Join the organization
• Regularly attend their jobs
• Perform their jobs well
• Stay with the organization.

Intrinsic Rewards

• Sense of accomplishment
• Feeling of responsibility
• Chance to learn something new
• The fun that comes from performing an interesting, challenging, and engaging task.

The Most Important Rewards
Extrinsic:

• Health insurance
• Job security
• Good benefits
• Vacation time

intrinsic:

• Interesting work
• Learning new skills
• Independent work situations.

Motivating with the Basics

• Ask people what their needs are
• Satisfy lower-order needs first
• Expect people’s needs to change
• Satisfy higher order needs by looking for ways to allow employees to experience intrinsic rewards.

How People React to Perceived Inequity

• Reduce inputs
• Increase outcomes
• Rationalize inputs or outcomes
• Change the referent
• Leave.

Motivating with Equity Theory

• Look for and correct major inequities
• Reduce employees’ inputs
• Make sure decision-making processes are fair
• distributive justice
• procedural justice.

Motivating with Expectancy Theory

• Systematically gather information to find out what employees want from their jobs
• Clearly link rewards to individual performance
• Empower employees to make decisions which enhance expectancy perceptions.

Reinforcement Theory

A theory that states that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.

Reinforcement Contingencies

• Positive reinforcement that means desirable consequence strengthens behavior
• Negative reinforcement that means withholding unpleasant consequence strengthens behavior
• Punishment that means unpleasant consequence weakens behavior
• Extinction that means no consequence weakens behavior.

Motivating with Reinforcement Theory

1. Identify, measure, analyze, intervene,
2. and evaluate
3. Don’t reinforce the wrong behavior
4. Correctly administer punishment at the appropriate time
5. Choose the simplest and most effective schedule of reinforcement.

Goal-Setting Theory

• Goal Specificity; the clarity of goals
• Goal Difficulty; how challenging goals are
• Goal Acceptance; how well goals are agreed to or understood
• Performance Feedback; information on goal progress.

Motivating with Goal-Setting Theory

• Assign specific, challenging goals
• Make sure workers truly accept organizational goals
• Provide frequent, specific
• performance-related feedback.

Characteristics of employee

Age

• Treating people differently because of their age
• Performance does not decline with age
• Older employees show better judgment, and are less likely to quit, show up late, or be absent
• Age discrimination is more pervasive than managers think.

Gender

• Treating people differently because of their gender
• Glass ceiling
• invisible barrier that keeps women and minorities from advancing to the top of the organization
• Can be diminished by: mentoring and stopping unintentional behavior

Race / Ethnicity

• Treating people differently because of their race or ethnicity
• Employment disparities do exist
• Legislation has lessened the problem
• Reduce by:eliminating unclear selection and promotion criteria and training managers who make hiring and promotion decisions.

Mental or Physical Disabilities

• Disability is a mental or physical impairment that substantially limits one or more major life activities
• Disability discrimination means treating people differently because of their disabilities
• Reduce by: educating to address incorrect stereotypes, committing to reasonable workplace accommodations, and recruiting qualified workers with disabilities.

Work-Related Personality Dimensions

• Authoritarianism that means the extent to which an individual believes there should be power and status differences
• Machiavellianism that means believe that virtually any type of behavior is acceptable if it leads to goal accomplishment.Type A/B personality dimension
  the extent to which people tend toward impatience, hurriedness, and hostility
  
  Type A personalities
  hard driving, competitive, perfectionist, angry, unable to relax
  Type B personalities
  Easygoing, patient, able to relax, engage in leisure activities
• Locus of control: the degree to which people believe that their actions influence what happens to them
• Internal locus of control (what happens to you is under your control) and External locus of control (what happens to you is beyond your control)
• Positive affectivity
• consistently focusing on the positive aspects
• Negative affectivity
• consistently focusing on the negative aspects
• Mood linkage
• a phenomenon where one worker’s negativity spreads to others.

Organizational Plurality
A work environment where:

• All members are empowered to contribute in a way that maximizes the benefits to the organization, customers, themselves
• The individuality of each member is respected by not segmenting or polarizing people based on their membership in a group.

Benefits of the Learning and
Effectiveness Diversity Paradigm

• Values common ground
• Makes a distinction between individual and
• group differences
• Less likely to encounter conflict, backlash,
• and divisiveness
• Focuses on bringing different talent and
• perspectives together.

Diversity Principles

1. Carefully and faithfully follow and enforce all equal employment opportunity laws
2. Treat group differences as important,
3. but not special
4. Tailor opportunities to individuals, not groups
5. Reexamine, but maintain, high standards
6. Solicit negative as well as positive feedback
7. Set high but realistic goals.