UNIT FOUR 组织人事原理.ppt

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Management Course for MS Graduate Students UNIT FOUR 组织人事原理 王云峰：组织人事理论 组织人事原理 工作设计：将任务与职责相结合 人力配备：雇佣员工与创建团队 文化建设：决定工作态度和方法 王云峰：组织人事理论 Basic Organization Designs 组织设计的基本元素 组织设计的决策变量 组织形式、组织结构、组织文化 王云峰：组织人事理论 The Elements of Structure 构建组织的基本要素：分工、控制、层级、权责、部门 组织技能：完成什么任务（工作与流程设计），由谁完成（岗位设计），任务类别（部门设计），领导权责（制度设计） 沟通机制，决策机制，控制机制 王云峰：组织人事理论 Work Specialization 工作分工 Impact from Economies of Specialization Impact from Human Diseconomies Work Specialization High Low Low High Productivity 专业化的经济性 是有限的 王云峰：组织人事理论 The Span of Control 控制幅度（指挥有效性） Contingency Variables 具有权变性 Level in the Organization 与管理层级相关 王云峰：组织人事理论 The Chain of Command 管理层级（指挥统一性） District A District B District C District D District E District F District G Region 1 Region 2 Region 3 Region 4 Region 5 Vice President Vice President Vice President Vice President Vice President Chief Executive Officer Executive Vice President Executive Vice President President 王云峰：组织人事理论 Line Versus Staff Authority 直线职权与参谋职权 Executive Director Assistant to the Executive Director Unit 2 Manager Unit 1 Manager Other Human Resources Operations Purchasing Other Directors Director of Purchasing Director of Human Resources Director of Operations Other Operations Purchasing Human Resources Line Authority Staff Authority 王云峰：组织人事理论 The Concept of Authority 职权：职位赋予的权力 Marketing Human Resources Production Accounting Finance Chief Executive Officer Research and Development 王云峰：组织人事理论 Finance Accounting Marketing Human Resources Research and Development Production Power 因素 Function Authority Level 职位层级 Power Core 权力核心 王云峰：组织人事理论 Expert 专长 Legitimate 职位 Coercive 强制 Referent 感召 Reward 奖赏 Power 来源 王云峰：组织人事理论 The Degree of Centralization Higher Employee Empowerment Centralization 集权 Decentralization 分权 Higher Lower Top Management Control Lower 王云峰：组织人事理论 Five Ways to Departmentalize 组织部门化的形式 Functional Product Customer Geographic Process 王云峰：组织人事理论 Contingency Variables Affecting Structure 组织设计的决策变量 Complexity 复杂性 Formalization 正规化 Centralization 集权化 . 组织分化程度 对规则和程序的 依赖程度 决策权集中程度 王云峰：组织人事理论 Organic 有机式 Collaboration Adaptable Duties Few Rules Informal Communication Decentralized Decisions Flatter Structures Mechanistic 机械式 Rigid Hierarchy Fixed Duties Many Rules Formal Communication Centralized Decisions Taller Structures Organizational Forms 王云峰：组织人事理论 What Determines the Best Structure? 组织决策的关联因素 Strategy 战略 Size 规模 Technology 技术 Environment 环境 王云峰：组织人事理论 Centralized Authority 集权控制 Wide Spans of Control 跨度大 Few Departments 部门少 Little Formalization 不太正规 The Simple Structure 简单化组织 王云峰：组织人事理论 The Bureaucracy 正规化组织（机械式） Divisional Structure 分部式（自治） Functional Structure 职能式 王云峰：组织人事理论 The Matrix Structure 矩阵型组织：双向统一 Cross-Functional Coordination 跨职能 Clear Accountability 责任清晰 Allocation of Specialists 专家支配权 Dual Chain of Command 双向指挥 王云峰：组织人事理论 The Team-Based Structure 团队组织 Hold Teams Accountable Empower Workers 王云峰：组织人事理论 The Popularity of Teams 团队组织为何流行？ Performance 业绩好 Efficiency 效率高 Job Satisfaction 岗位满意 王云峰：组织人事理论 Stages of Team Development Prestage I Stage I Forming 形成 Stage II Storming 震荡 Stage III Norming 规范 Stage IV Performing 运作 Stage V Adjourning 解体 王云峰：组织人事理论 Share information 信息共享 Neutral (may be negative) 较差 Individual 自担 各异Random and varied Goal 目标 Synergy 协同性 Accountability 责任和义务 Skills Collective performance 合作 Positive 较强 Individual and mutual 共担 Complementary 互补 Work Groups Work Teams Comparing Work Groups and Work Teams 群体和团队的差异 王云峰：组织人事理论 Types of Work Teams Problem-solving 攻关型 Functional 职能型 Self-managed 自我管理型 Cross-functional 跨职能型 Virtual 虚拟型 王云峰：组织人事理论 Good Communication Unified Commitment Clear Goals Effective Teams 特征 Internal Support Relevant Skills Mutual Trust Negotiating Skills Effective Leadership External Support 王云峰：组织人事理论 Challenges of Creating Team Players Individual Preferences 个人偏好 Work Environments 工作环境 National Culture 文化差异 王云峰：组织人事理论 Key Roles on Teams Adviser 顾问 Promoter 推动者 Producer 生产者 Linker 联络者 Creator 创作者 Assessor 助手 组织者 Controller 管理者 Maintainer 维护者 王云峰：组织人事理论 Shaping Team Behavior 规范行为 Training 培训 Selecting 挑选成员 Rewarding 奖励优秀 王云峰：组织人事理论 Reinvigorating Mature Teams 团队振兴与发展 Preparation Refresher Training 恢复性培训 Advanced Training 提高性培训 Constant Learning 持续学习 王云峰：组织人事理论 Continuous Improvement 持续改进 Workforce Diversity 成员多样化 Contemporary Team Issues 王云峰：组织人事理论 推荐书目 组织发展与创新译丛 尼基. 海斯著 成功的团队管理 杨蓓译 清华大学出版社 汤姆森学习出版集团 2002 王云峰：组织人事理论 The Boundary less Organization 淡化边界 Empowered Employee Teams 团队式 Widened Spans of Control 幅度宽 Limited Chain of Command 层次少 王云峰：组织人事理论 Risk Tolerance Reward Criteria Conflict Tolerance Means-End Orientation Open-Systems Focus Member Identity Group Emphasis People Focus Unit Integration Control Assessing an Organization’s Culture 王云峰：组织人事理论 课题：组织设计研究 组织结构与战略；在组织发展的不同时期，对复杂性、正规化、集权化的选择不同 权责分离有损组织效率，根源在于责任与组织目标相关联而控制权以资源要素为对象之矛盾 控制方式多元化趋势，基于信息的自适应有机组织形式（文献研究作业） 王云峰：组织人事理论 Staffing and Human Resource Management 人才战略与人力配备 The quality of an organization is determined by the quality of people it employs 王云峰：组织人事理论 组织员工 一旦部门结构确定，便要为每位员工安排具体职务：将任务组合成职务；通过建立职务说明以规范工作程序 王云峰：组织人事理论 JOB Specification/Description JOB Specification：任职条件（职务规范－完成给定职务须具备的基本资格），特定职务要求的基本知识（学历）、经验和技能（资历） JOB Description：岗位职责（职务说明－职务内容及如何履行职务的说明）：职务范围、直接上级、操作责任 王云峰：组织人事理论 Human Resource Mgmt Process Human Resource Planning Recruitment or Downsizing 招聘或减员 Selection of Employees 甄选 Orientation 发展定向 Training and Development 培训和提升 Performance Appraisals 业绩考评 Safety and Health 安全与 保健 Compensation and Benefits 薪酬与福利 Competent High-Performing Workers 王云峰：组织人事理论 The Legal Environment of HRM 就业与社会保障 Affirmative Action Program 确保少数民族和妇女权利的行动计划 Employment 就业权利 Training 提升权利 Retention 留职权利 王云峰：组织人事理论 Human Resource Planning Making a Future Assessment 人才需求预测 Making a Current Assessment 现状和需求分析 （岗位描述和任职条件） Designing a Future Program 人力资源开发计划 王云峰：组织人事理论 Traditional Recruiting 招聘 Sources Internal Searches Employee Referrals Employee Leasing Temp Services Employment Agencies Advertisements School Placement 王云峰：组织人事理论 Firing 解雇 下岗 Layoffs and Attrition Transfers 转业 减时 Reduced Workweeks 岗位分享 Job Sharing 早退 Early Retirements Downsizing Options 减员 王云峰：组织人事理论 Reject Error Correct Decision Accept Error Correct Decision Selection Decision Accept Reject Successful Unsuccessful Later Job Performance Selection Decision Outcomes 甄选 王云峰：组织人事理论 Selection Devices Performance Simulations 模拟测试 Written Tests 笔试 王云峰：组织人事理论 The Effectiveness of Interviews Prior knowledge about an applicant 背景知识 Attitude of the interviewer 面试态度 The order of the interview 面试顺序 Negative information 负面信息 The first five minutes 前五分钟 The content of the interview 面试内容 The validity of the interview 面试的合法性 Structured versus unstructured interviews 王云峰：组织人事理论 Well-Matched Applicants Realistic Expectations Increased Commitment Realistic Job Previews 王云峰：组织人事理论 Employee Orientation 定向 Smooth Insider-Outsider Transition平滑过渡 Improve Work Performance 提高水平 Minimize Resignations减少辞职 王云峰：组织人事理论 Employee Training 培训 Determine strategic goals Identify essential tasks Determine critical behaviors Assess deficiencies in skills, knowledge, and abilities 王云峰：组织人事理论 Militiaperson Graphic Rating Scales Critical Incidents 领导鉴定 Written Essay 述职报告 BARS 岗位业绩考评方法 Performance Appraisal Methods 360-Degree Appraisal MBO 王云峰：组织人事理论 Employee Counseling 规劝补救 Discipline Problems 纪律惩戒 Performance Problems on the Job 岗位绩效问题处理 王云峰：组织人事理论 Compensation Administration 薪酬管理（相关因素） Knowledge, skills, abilities Authority and responsibility Nature of the business The environment Geographic location Performance levels Seniority Compensation philosophy 王云峰：组织人事理论 Determining Benefits 受益范围 Determining Pay Levels 薪酬体系 （层次结构） Administration of Employee Compensation 薪酬政策研究 （Business Policy） 王云峰：组织人事理论 Workforce Diversity 多元化 性别歧视 Sexual Harassment Current HRM Issues 王云峰：组织人事理论 Family-Friendly Benefits 大家庭 结社 Unions and Management Current HRM Issues 王云峰：组织人事理论 Workplace Violence 工场暴力 Survivors of Layoffs 下岗生存 Current HRM Issues 王云峰：组织人事理论 人事管理要点和基础 （岗位描述、任职条件、岗位职责、岗位考评） 科学设岗，合理分配权责配备人力，将合适的员工安置到正确的岗位，使其有效地履行岗位权责 （人才、人力资源、人力资本） 王云峰：组织人事理论 Managing Change and Innovation 组织变革与组织创新 变革力量与变革过程 变革压力与创新动力 王云峰：组织人事理论 What is Change? Change is an alteration of an organization's environment, structure, technology, or people 王云峰：组织人事理论 Categories of Change Structure 组织结构 People 组织成员 Technology 组织方法 王云峰：组织人事理论 External Forces of Change 外部驱动力 Competition Technology Economic Conditions Government Programs 王云峰：组织人事理论 Internal Forces of Change 内部驱动力 Impact of External Events Internal Operations 王云峰：组织人事理论 Agents of Change 变革推动者 Outside Consultants 外部顾问 Staff Specialists 内部专家 Managers 内部主管 王云峰：组织人事理论 The “Calm Waters” Metaphor 风平浪静－变革过程相对平稳 Unfreezing Changing Refreezing Lewin’s Three-Step Process 王云峰：组织人事理论 Lack of Stability Constant Change Virtual Chaos Lack of Predictability White-Water Rapids “急流险滩”－激烈变革 王云峰：组织人事理论 Resistance to Change 变革过程的阻力 Uncertainty and Ambiguity 犹豫不决 Fear of Personal Loss 害怕失去 Lack of Faith in Change 信心不足 王云峰：组织人事理论 Education and Communication 教育 Participation 参与 Negotiation 商议 Facilitation and Support 协助 Coercion 强迫 Manipulation and Cooptation 操纵 Techniques for Reducing Resistance 王云峰：组织人事理论 Techniques for Managing Change 变革管理方法 Authority Coordination Centralization Attitudes Expectations Behavior Processes Methods Equipment People 员工方面 Technology 技术方面 Structure 组织方面 王云峰：组织人事理论 Organizational Development Techniques 调整工作关系 Inter-group development 交流 Process consultation 咨询 Survey feedback 反应 Team building 建设 王云峰：组织人事理论 Importance 重要性提升 Uncertainty 不确定性增加 What Is Stress? 变革带来的压力 Demands 需求变化加速 Constraints 环境制约增加 变革管理新课题：文化变革、员工压力、创新、创优 王云峰：组织人事理论 Organizational Stress Factors 组织因素 Task Demands 任务 Role Demands 角色 Interpersonal Demands 人际关系 Structural Dimensions 组织结构 Leadership Techniques 领导方式 王云峰：组织人事理论 Personal Stress Factors 个人因素 Family 家庭 Economic 经济状况 Personality 个性 王云峰：组织人事理论 Physiological 生理上 Psychological 心理上 Behavioral 行为上 Stress 症状 Three General Symptoms 王云峰：组织人事理论 Stress Management 如何变压力为动力？ Selection and placement 选任力所能及 Job redesign 职务调整 Participation 增加参与 Wellness programs 增加保健 Employee assistance 援助 王云峰：组织人事理论 Combining new ideas in unique ways or associating ideas in unusual ways 独特方式综合各种思想和建立联系 Turning creative ideas into useful products, services, or methods of operation 将创造性思维转化成有用产品、服务或作业方法 What Is Creativity? 创造 What Is Innovation? 创新 王云峰：组织人事理论 The Creative Process Perception 感觉 Innovation 创新 Incubation 思考 Inspiration 灵感 王云峰：组织人事理论 Structural Variables 组织推动 Sources of Innovation Organizational Culture 氛围促动 Human Resources 同事带动 王云峰：组织人事理论 组织管理难点和关键技术 以绩效考评为工具、职业发展为杠杆，将变革压力转换为创新动力，通过创新激发组织活力，促进组织发展，增强组织对战略的适应性 王云峰：组织人事理论 推荐书目 组织发展与创新译丛 健康的组织 组织绩效管理 组织危机管理 组织创新与变革 清华大学出版社 汤姆森学习出版集团 2002 王云峰：组织人事理论 推荐书目 Richard L. Daft 组织理论与设计精要 李维安等译 机械工业出版社 1999 王云峰：组织人事理论 Formulated by management writers in the early years of this century. These principles still provide valuable insights into designing effective and efficient organizations. LEARNING OUTCOMES After reading this chapter, students should be able to: Identify and define the six elements of organization structure. Describe the advantages and disadvantages of work specialization. Contrast authority and power. Identify the five different ways by which management can departmentalize. Contrast mechanistic and organic organizations. Summarize the effect on organization structures of strategy, size, technology, and environment. Contrast the divisional and functional structures. Explain the strengths of the matrix structure. Describe the boundary less organization and what elements have contributed to its development. Describe what is meant by the term organization culture. INTRODUCTION Demonstrates the importance of having the right structure and work environment. Once decisions regarding corporate strategies are made, an effective structure must be implemented to facilitate the attainment of those goals. When managers develop or change the organization's structure, they are engaging in organization design. Organization design decisions are typically made by senior managers, applies to any type of organization. What Is Work Specialization? In the 1700s, Adam Smith advocated in Wealth of Nations that jobs be divided into parts. A job is broken down into a number of steps and each completed by a separate individual. Individuals specialize in a part of an activity. Work specialization makes efficient use of the diversity of skills that workers hold. Some tasks require highly developed skills; others lower skill levels. Division of labor, or work specialization, describes the degree to which organizational tasks are subdivided into separate jobs. An entire job is not done by one person. Instead, it is divided into discrete steps, each one completed by a different person. Early proponents believed that work specialization could lead to indefinitely increasing productivity. Since specialization was not widely practiced at the turn of the twentieth century, their belief was reasonable. By the late 1940s, work specialization enabled manufacturing firms to make the most effective use of their employees’ skills. So, managers believed that division of labor offered an unending source of increased productivity. By the 1960s, however, the human diseconomies resulting from work specialization began to offset the economic advantages. Managers today realize that while division of labor is appropriate for some jobs, productivity in other jobs can be increased through enlarging, not narrowing, job activities. What Is the Span of Control? How many employees can a manager efficiently and effectively direct? This question received a great deal of attention from early management writers. There was no consensus on a specific number but early writers favored small spans of less than six. Level in the organization is a contingency variable. Top managers need a smaller span than do middle managers, and middle managers require a smaller span than do supervisors. There is some change in thinking about effective spans of control. Many organizations are increasing their spans of control. The span for managers has expanded to twice the number of fifteen years ago. The span of control is increasingly being determined by contingency variables. The more training and experience employees have, the less direct supervision needed. Other contingency variables should also be considered: similarity of employee tasks, the task complexity, the physical proximity of employees, the degree of standardization, etc.   How many employees can a manager efficiently and effectively direct? Some advocate small spans of control because they help managers maintain close control; but, there are several drawbacks: they require more managers and are more costly, they retard vertical communication, and they foster tight controls and limited employee autonomy. In contrast, wide spans of control reduce costs, cut overhead, expedite decision making, increase flexibility, empower employees, and promote customer contact. All things being equal, the broader the span of control, the more efficient the organization. The following variables influence how a company will determine an appropriate span of control: similarity and complexity of employee tasks, the proximity of employees, the presence of standardized procedures, the capabilities of the information management system, the strength of the firm’s value system, and the preferred style of management. What Is the Chain of Command? The early management writers argued that an employee should have only one superior. If the chain of command had to be violated, early management writers always explicitly designated that there be a clear separation of activities and supervisory responsibilities. The chain of command concept was logical when organizations were comparatively simple. Authority refers to the rights inherent in a managerial position, such as giving orders and expecting that the orders will be obeyed. Authority, therefore, is related to one’s position within an organization and ignores the personal characteristics of the individual manager. When managers delegate authority, they must allocate commensurate responsibility to perform. Early management writers distinguished between two forms of authority: line and staff. Line authority entitles a manager to direct the work of an employee. It is the employer-employee relationship that extends from the top of the organization to the lowest echelon, according to the chain-of-command (see the chart above). As a link in the chain of command, a manager with line authority has the right to direct the work of employees and to make certain decisions without consulting anyone. Of course, in the chain of command, every manager is also subject to the direction of his or her superior. Are There Different Types of Authority Relationships? 1. The early management writers distinguished between two forms of authority. a) Line authority entitles a manager to direct the work of an employee. It is the employer-employee authority relationship that extends from top to bottom. Shown in Exhibit 5-2. A line manager directs the work of employees and makes certain decisions without consulting anyone. b) Sometimes the term line is used to differentiate line managers from staff managers. Line emphasizes managers whose organizational function contributes directly to the achievement of organizational objectives. Staff managers have staff authority. c) A manager's function is classified as line or staff based on the organization's objectives. 2. As organizations get larger and more complex, line managers find that they do not have the time, expertise, or resources to get their jobs done effectively. They create staff authority functions to support, assist, advise, and generally reduce some of the informational burdens they have. Exhibit 5-3 illustrates line and staff authority. If the term line is used to differentiate between levels of management, line managers contribute directly to the achievement of organizational objectives. Managers with staff authority support, assist, and advise those who hold line authority. The chart above illustrates line and staff authority. How does the contemporary view of authority and responsibility differ from the historical view? Early management scholars assumed that the authority and rights inherent in one’s formal position were the sole source of influence; so, managers were all powerful. But, organizations were simpler then, staff was less important, and management was only minimally dependent on technical specialists. Modern theorists now realize that no managers can have power and that power is not perfectly correlated with one’s job. What Are Authority and Responsibility? Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. Authority was a major tenet of the early management writers, the glue that held the organization together. It was to be delegated downward to lower-level managers. Each management position has specific inherent rights that incumbents acquire from the position's rank or title. Authority is related to one's position and ignores personal characteristics. When a position of authority is vacated, the authority remains with the position. When managers delegate authority, they must allocate commensurate responsibility. Allocating authority without responsibility creates opportunities for abuse. No one should be held responsible for something over which he or she has no authority. Authority is a right based on one’s position in an organization. It goes with the job. Power, on the other hand, refers to an individual’s capacity to influence decisions. Authority, therefore, is a part of the larger concept of power. Authority and power are compared in this slide and the one that follows. As the slide above illustrates, authority is a two-dimensional concept: that is, the higher one is in an organization, the more authority he or she has. How Do Authority and Power Differ? Authority and power are frequently confused. Authority is a right, the legitimacy of which is based on the authority figure's position in the organization. Authority goes with the job. Power refers to an individual's capacity to influence decisions. Authority is part of the larger concept of power. Exhibit 5-4 visually depicts the difference. Power is a three-dimensional concept. It includes not only the functional and hierarchical dimensions but also centrality. While authority is defined by one's vertical position in the hierarchy, power is made up of both one's vertical position and one's distance from the organization's power core, or center. Think of the cone in Exhibit 5-4. The closer you are to the power core, the more influence you have on decisions. The existence of a power core is the only difference between A and B in Exhibit 5-4. The cone analogy explicitly acknowledges two facts: The higher one moves in an organization (an increase in authority), the closer one moves to the power core. It is not necessary to have authority in order to wield power because one can move horizontally inward toward the power core without moving up. Example, administrative assistants, "powerful" as gatekeepers with little authority. Low-ranking employees with contacts in high places might be close to the power core. So, too, are employees with scarce and important skills. The lowly production engineer with twenty years of experience might be the only one in the firm who knows the inner workings of all the old production machinery. Power can come from different areas. John French and Bertram Raven have identified five sources, or bases, of power. Summarized them in Exhibit 5-5.   Unlike authority (two-dimensional), power is a three-dimensional concept: that is, it includes not only the functional and hierarchical dimensions, but also a third dimension called centrality or one’s distance from the center, the core of power. The cone analogy above acknowledges two facts: (1) the higher one moves in an organization, the closer he or she is to the power core; and (2) even those without authority can wield power because one can move horizontally inward toward the power core without moving up. This analogy asserts that power can be based on five sources: coercive, reward, legitimate, expert, and referent. These five sources are presented in the next slide. John French and Bertram Raven have identified five sources, or bases, of power: Coercive power is based on fear. Reward power is based on the ability to distribute something that others value. Legitimate power is based on one’s position in the formal hierarchy. Expert power is based on one’s expertise, special skill, or knowledge. Referent power is based on identification with a person who has desirable resources or personal traits. How Do Centralization and Decentralization Differ? Centralization is a function of how much decision-making authority is pushed down to lower levels in the organization. Centralization-decentralization is a degree phenomenon. By that we mean that no organization is completely centralized or completely decentralized. Early management writers felt that centralization in an organization depended on the situation. Their objective was the optimum and efficient use of employees. Traditional organizations were structured in a pyramid, with power and authority concentrated near the top of the organization. Given this structure, historically, centralized decisions were the most prominent. Organizations today are more complex and are responding to dynamic changes. Many managers believe that decisions need to be made by those closest to the problem. Today, managers often choose the amount of centralization or decentralization that will allow them to best implement their decisions and achieve organizational goals. One of the central themes of empowering employees was to delegate to them the "authority" to make decisions on those things that affect their work. That's decentralization at work! However, that doesn't imply that senior management no longer makes decisions! The term centralization refers to the degree to which decision making is concentrated at a single point in the organization. The term decentralization means that significant input is provided by lower-level personnel. Traditional organizations were structured in a pyramid, with power and authority centralized at the top. In order to respond to the dynamics of the contemporary marketplace, organizations today are more decentralized to solve problems more quickly and to obtain increased employee input and commitment to organizational goals. But, while many production decisions are pushed down to lower levels in the organization, or even outside to some suppliers, financial and product distribution decisions still remain in the hands of senior management. Can You Identify the Five Ways to Departmentalize? Early management writers argued that activities should be specialized and grouped. Work specialization creates specialists who need coordination. This is facilitated by putting specialists together in departments under the direction of a manager. Creation of these departments is typically based on a variety of factors. The early writers advocated no single method of departmentalization. How Are Activities Grouped? One of the most popular ways to group activities is by functional departmentalization. See Exhibit 5-6. Functional departmentalization can be used in all types of organizations. Exhibit 5-7 illustrates the product departmentalization method used at Bombardier Ltd. Each major product area in the corporation is placed under the authority of a senior manager who is a specialist in, and is responsible for, everything. Another company that uses product departmentalization is . Gear. Its structure is based on its varied product lines. Service-related organization's activities would be autonomously grouped. For instance, an accounting firm. The particular type of customer the organization seeks can also be used to group employees. See Exhibit 5-8. The assumption is that customers in each department have a common set of problems and needs that can best be met by having specialists for each. Another way to departmentalize is geographic departmentalization. See Exhibit 5-9. Valuable, if an organization's customers are scattered over a large geographic area. Process departmentalization group’s activities on the basis of work or customer flow. Exhibit 5-10 represents an example of process departmentalization. If you have ever been to a state motor vehicle office to get a driver's license, you experienced a process organization. How Does the Contemporary View of Departmentalization Differ from the Historical View? Most large organizations continue to use the departmental groups suggested by the early management writers. Recently however, rigid departmentalization is being complemented by the use of teams that cross over traditional departmental lines. Today's competitive environment has refocused attention on customers. To better monitor the needs of customers and to be able to respond to changes in those needs, many organizations have given greater emphasis to customer departmentalization. The Dana Corporation, for example. As tasks have become more complex and diverse skills are needed to accomplish those tasks, management has increasingly introduced the use of teams and task forces. Early writers believed the ideal structural design to be mechanistic or bureaucratic. Today, we recognize that there is no single "ideal" organization structure for all situations. A.    How Is a Mechanistic Organization Different from an Organic Organization? 1.      Exhibit 5-11 describes two organizational forms. 2.      The mechanistic organization (or bureaucracy) was the natural result of combining the six elements of structure. a)     The chain of command principle ensured the existence of a formal hierarchy of authority. b)     Keeping the span of control small created tall, impersonal structures. Top management increasingly imposed rules and regulations. c)     The high degree of division of labor created simple, routine, and standardized jobs. d)     Departmentalization increased impersonality and the need for multiple layers of management. 3.      The organic form is a highly adaptive form that is a direct contrast to the mechanistic one. a)     The advocacy’s loose structure allows it to change rapidly as needs require. Advocacies have professionals who are technically proficient and trained to handle diverse problems. They need very few formal rules and little direct supervision. b)     The organic organization is low in centralization; When each of these two models is appropriate depends on several contingency variables. Rigid and tightly controlled, the mechanistic organization is characterized by high specialization, extensive departmentalization, narrow spans of control, high formalization, downward communication, high centralization, and little participation by low-level members in decision making. Jobs are standardized, simple, and routine. There is also strict adherence to the chain of command. In its ideal form, the mechanistic organization is an “efficiency machine,” well lubricated by rules, regulations, and routines. The organic organization is a direct contrast to the mechanistic form. It is characterized by a flat structure, flexibility, use of cross-functional teams, adaptability, comprehensive information networking, and decentralization. Rather than having standardized jobs and regulations, the organic structure’s flexibility allows it to change rapidly as needs require. While there is a division of labor, jobs are not standardized, and employees are well-trained and empowered to make job-related decisions. The net effect is that workers need a minimal degree of formal rules and little direct supervision. With these two models in mind, we are now prepared to address the question: Why are some organizations structured along more mechanistic lines while others lean toward organic characteristics? The structure that an organization selects to achieve its objectives is based on strategy. After studying nearly 100 large companies, Alfred Chandler concluded that changes in corporate strategy foster changes in an organization’s structure. Specifically, he found that organizations usually begin with a single product or line. The simplicity of the strategy requires only a simple form of structure. As organizations grow, their strategies become more elaborate and ambitious. To exemplify this structure-strategy relationship, consider that organizations pursuing a differentiation strategy must innovate to survive; so, because it is flexible and adaptable, an organic structure complements this strategy. A cost-leadership strategy, on the other hand, seeks stability and efficiency. A mechanistic structure would be best for this type of strategy. While the size of an organization significantly influences its structure, the relationship is non-linear. Large organizations (2,000+ employees) have more specialization, departmentalization, vertical levels, rules, and regulations than do smaller organizations. However, size affects the organization at a decreasing rate and becomes less important as an organization expands. Organizations use technology to transform inputs into outputs. The British scholar, Joan Woodward, studied small manufacturing firms in England and categorized them based on the sizes of their production runs. She reached two conclusions: (1) distinct relationships exist between a firm’s technology classification and its structure; (2) organizational effectiveness is contingent upon “fit” between technology and structure. Her study, like many others, focused on the processes or methods that companies can use to transform inputs into outputs and how they differ according to degree of routine ness. Organic organizations are most effective in dynamic, uncertain environments. Mechanistic organizations are ill-equipped to function in such environments and are most effective in stable environments. To compete in the global village, many managers have redesigned their organizations to make them more organic. A.    How Does Strategy Affect Structure? 1.      An organization's structure is a means to help management achieve its objectives. Strategy and structure should be closely linked. 2.      Accordingly, organizational structure should follow strategy. If management makes a significant change in strategy, it needs to modify its structure as well. 3.      The first important research on the strategy-structure relationship was Alfred Chandler's study of close to 100 large . companies. 4.      After studying organizations over a period of fifty years and compiling extensive case histories, Chandler concluded that changes in corporate strategy precede and lead to changes in an organization's structure. Organizations usually begin with a single product or line. The simplicity of the strategy requires only a simple form of structure to execute it. Decisions can be centralized and complexity and formalization will be low. As organizations grow, their strategies become more ambitious and elaborate. 5.      Research has generally confirmed the strategy-structure relationship. Organizations pursuing a differentiation strategy must innovate to survive. An organic organization matches best with this strategy because it is flexible and maximizes adaptability. A cost-leadership strategy seeks stability and efficiency. Stability and efficiency help to produce low-cost goods and services, best achieved with a mechanistic organization. How Do Size, Technology and Environment Affect Structure? There is historical evidence that an organization's size significantly affects its structure. Large organizations--employing 2,000 or more employees--tend to have more division of labor, horizontal and vertical differentiation, and rules and regulations than do small organizations. The relationship is not linear; the impact of size becomes less important as an organization expands. Every organization uses some form of technology to convert its inputs into outputs. To attain its objectives, the organization uses equipment, materials, knowledge, and experienced individuals and puts them together into certain types and patterns of activities. Joan Woodward found that distinct relationships exist between size of production runs and the structure of the firm. The effectiveness of organizations was related to "fit" between technology and structure. Most studies focused on the processes or methods that transform inputs into outputs and how they differ by their degree of routine ness. The more routine the technology, the more standardized the structure can be. Technology that is more no routine requires an organic structure. Mechanistic organizations are most effective in stable environments. Organic organizations are best matched with dynamic and uncertain environments. The environment-structure relationship is why managers have restructured their organizations to be lean, fast, and flexible. Global competition, accelerated product innovation, and increased demands from customers are examples of dynamic environmental forces. Mechanistic organizations tend to be ill equipped to respond to rapid environmental change. A.    What Is a Simple Structure? 1.      Most organizations start as an entrepreneurial venture with a simple structure. 2.      This design reflects the owner as president, with all employees reporting directly to her. 3.      Work specialization is low, few rules govern the operations, and authority is centralized in a single person--the owner. 4.      The simple structure is a "flat" organization, with centralized decision making. 5.      The simple structure is most widely used in smaller businesses. 6.      The strengths of the simple structure, It is fast, flexible, and inexpensive to maintain, and accountability is clear. 7.      Major weaknesses It is effective only in small organizations. It becomes increasingly inadequate as an organization grows; its few policies or rules to guide operations and its high centralization result in information overload at the top. As size increases, decision-making becomes slower and can eventually stop. Everything depends on one person. Placing organizations into only two categories--mechanistic and organic--does not capture the nuances and realities of modern organizations. The following slides present a number of practical organization design options. We will start with the simple structure--the form that almost all new organizations begin with and that continues to be used by managers of small businesses. Popular in small businesses owned and managed by same person, the simple structure has several characteristics: a low degree of departmentalization, wide spans of control, centralized authority, little formalization, and a flat structure. This fast, flexible structure is inexpensive to maintain and promotes clear accountability. However, as the organization grows, low formalization and high centralization can cause information over-load at the top. And, this structure is risky because everything depends on one person. The paradigm of business structures 30 years ago, a bureaucracy has the following characteristics: highly specialized operating tasks, formalized rules and regulations, tasks grouped into functional departments, centralized authority, narrow spans of control, and chain-of-command decision making. This structure expedites the efficient performance of standardized activities. Furthermore, rules and regulations allow bureaucracies to substitute less-talented (less-costly) managers for creative, experienced decision makers. This structure does have several drawbacks. Specialization can create jurisdictional disputes or “turf-wars” as functional unit goals override the goals of the organization. Plus, bureaucrats resist change and avoid outcome accountability. Given environmental volatility, however, many bureaucracies have become less rigid and more entrepreneurial through decentralizing decision making, designing work around teams, and developing strategic alliances. The matrix structure assigns functional specialists to interdisciplinary teams that are supervised by project leaders. This structure combines product departmentalization and functional departmentalization. Because workers in the matrix have two bosses—their functional department managers and their product managers—the matrix breaks the unity-of-command concept. The matrix has strong points: it facilitates coordination between multiple projects that are complex and interdependent, and it efficiently allocates specialists. The matrix also has several weaknesses: it can create confusion, foster power struggles, and increase employee stress. So, the matrix has met with mixed success. I.      ORGANIZATION DESIGN APPLICATIONS A.    Can an Organization Design Capture the Advantages of Bureaucracies While Eliminating Their Disadvantages? 1.      The functional structure offers the advantages that accrue from specialization. 2.      The divisional structure has a greater focus on results but suffers from duplication of activities and resources. 3.      The matrix structure combines the advantages of functional specialization with the focus and accountability that product departmentalization provides. Exhibit 5-12 illustrates the matrix structure of an aerospace firm. 4.      The unique characteristic of the matrix is that employees in this structure have at least two bosses: their functional departmental manager and their product or project managers. Project managers have authority over the functional members who are part of his team. 5.      Authority is shared between the two managers. Typically, the project manager is given authority over project employees relative to the project's goals. Decisions such as promotions, salary recommendations, and annual reviews remain the functional manager's responsibility. 6.      To work effectively, project and functional managers must communicate and coordinate. 7.      The primary strength of the matrix is that it can facilitate coordination of a multiple set of complex and interdependent projects while still retaining the economies that result from keeping functional specialists grouped together. 8.      The major disadvantages of the matrix lie in the confusion it creates and its propensity to foster power struggles. A.    What Are Team-Based Structures? 1.      The entire organization consists of work groups or teams. 2.      Team members have the authority to make decisions that affect them, because there is no rigid chain of command. 3.      How team structures can benefit the organization is exemplified by the example of Thermos at the Schaumburg, Illinois plant. Thermos' bureaucracy was slowing up decision making and constraining innovation. Thermos' CEO, Monte Peterson, attacked the problem by flattening the organization with interdisciplinary team-based structures. The prime directive was "listen to customers, and develop products they want." 4.      Since the company moved to a team-based design, sales have increased dramatically, and its market share, in the barbecue grill market, has risen from 2 to 20 percent. Management can focus its coordination efforts by using a team structure. A team structure breaks down departmental barriers, flattens the organization, decentralizes decision making, empowers employees, promotes accountability, and requires employees to be generalists as well as specialists. In smaller companies, the team structure can define the entire organization. More often, especially in larger organizations, the team structure complements what is typically a bureaucracy. Such an arrangement allows the organization to achieve the efficiency of standardization while gaining flexibility. THE POPULARITY OF TEAMS More than two decades ago, when companies introduced teams, they made news. Today, it's the organization that doesn't use some form of team that is noteworthy. The current popularity of teams comes from the fact that teams typically outperform individuals when the tasks being done require multiple skills, judgment, and experience. As organizations restructure themselves to compete more effectively and efficiently, they are turning to teams as a way to better utilize employee talents. Teams can serve as a source of job satisfaction as they empower team members. Evidence suggests that teams out perform individuals on tasks that require multiple skills, judgment, and experience. Management has found that teams are more flexible and responsive to a changing environment because they can be quickly assembled, deployed, refocused, and disbanded. In addition, teams promote job satisfaction through enhancing employee involvement, increasing employee morale, and promoting work force diversity. Also, superior work teams are fundamental to TQM. Team development is a dynamic, ongoing process that can be broken into five stages: forming, storming, norming, performing, and adjourning. Forming is characterized by a great deal of uncertainty about the group's purpose, structure, and leadership. This stage is complete when members think of themselves as part of a team. The storming stage is one of intragroup conflict. There is resistance to the control that the group imposes on individuality. When complete, there will be relatively clear leadership within the team. Norming stage is one in which close relationships develop and members begin to demonstrate cohesiveness. There is now a stronger sense of team identity and camaraderie. It is complete when the team structure solidifies and members have assimilated a common set of expectations. The fourth stage is performing. The structure is fully functional and accepted by team members. For permanent teams, performing is the last stage of their development. For temporary teams, there is an adjourning stage and the team wraps-up activities and prepares to disband. Teams do not always proceed clearly from one stage to the next. Sometimes several stages are going on simultaneously. It is better to think of these stages as a general framework.   Aren't Work Groups and Work Teams the Same A group is two or more interdependent individuals who interact to achieve particular objectives. A work group interacts primarily to share information and make decisions that will help group members to perform their on-the-job responsibilities. A work team generates positive synergy through coordinated effort. The figure above highlights the differences between work groups and work teams. In an effort to obtain synergy that can boost performance, many organizations have recently restructured work processes around teams. The use of teams creates the potential for an organization to generate greater outputs with no increase in inputs. But there is nothing “magical” in the creation of teams that assures the achievement of positive synergy. And merely calling a group a team does not automatically increase its performance. Nothing inherently magical in the creation of work teams guarantees this positive synergy, and its accompanying productivity. Problem-Solving Teams meet periodically to share ideas and suggest improvements to work processes and methods. Quality circles are problem solving teams that consist of eight to ten employees and supervisors who assume responsibility for solving quality problems. They assume responsibility for solving quality problems, and they generate and evaluate their own feedback. These teams recommend their solutions to management for final approval. Functional teams are composed of a manager and the employees in his or her unit. Functional teams are often formed to improve work-related activities or to solve specific problems within a particular functional unit. Self-managed work teams consist of ten to fifteen people who assume the responsibilities of their former supervisors: such as, controlling the pace of work, organizing breaks, determining work assignments, choosing inspection procedures, and choosing and evaluating members. These teams implement their own suggestions and take responsibility for the outcomes. On cross-functional teams, equally ranked employees from different functional areas work together to accomplish a task. Cross-functional teams expedite the following: exchanging ideas from diverse areas within or between organizations, developing new ideas and solving problems, and coordinating complex projects. Virtual teams are an extension of electronic meetings. Team members use communication technology to meet or solve problems without concern for time or space and enable organizations to link workers together that in the past couldn't have been done.         CHARACTERISTICS OF HIGH-PERFORMANCE WORK TEAMS High-performance work teams clearly understand the goal to be achieved. And they believe that the goal is worthwhile or important enough to redirect energy away from personal concerns and toward team goals. These teams are made up of competent individuals who have relevant technical skills, can work well with others, and can readjust their skills—called job-morphing—to fit the needs of the team. Effective teams are also characterized by high mutual trust among members who have made a unified commitment to be intensely loyal and dedicated to the team. Good communication is essential for high-performance teams. Members use verbal and nonverbal techniques to convey messages clearly. High-performance teams tend to be flexible and continually make adjustments. Therefore, team members need effective negotiating skills to confront and reconcile differences. Because they can clarify goals and increase self-confidence in team members, effective leaders are essential to successful teams. The best leaders are not directive or controlling; rather, they are coaches or facilitators. Finally, effective teamwork is promoted by a supportive environment: for example, one that values openness, honesty, collaboration, and employee involvement and autonomy. The infrastructure should support members and reinforce behaviors that lead to high levels of performance. Not every worker is inherently a team player. In fact, some individuals prefer to be recognized for their individual achievements. Furthermore, work environments in some organizations are such that “only the strong survive.” Finally, countries differ in terms of how conducive they are to individualism and collectivism. Teams fit well with countries that score high on collectivism, such as Japan. However, it is challenging to introduce teams into a work population that is made up of employees born and raised in a highly individualistic society, such as the United States. I.      TURNING INDIVIDUALS INTO TEAM PLAYERS A.    Introduction 1.      Some individuals prefer to be recognized for their individual achievements. 2.      In some organizations, too, work environments are such that only the "strong" survive. 3.      Creating teams in such an environment may meet some resistance. 4.      Teams fit well with countries that score high on collectivism.   B.     What Are the Management Challenges of Creating Team Players? 1.      Employees' success, when they are part of teams, is a function of how well the team as a whole performed. 2.      To perform well as team members, individuals must be able to communicate openly and honestly with one another, to confront differences and resolve conflicts, and to place lower priority on personal goals for the good of the team. 3.      The challenge of creating team players will be greatest where the national culture is highly individualistic. the teams are being introduced into an established organization that has historically valued individual achievement. This describes, for instance, what faced managers at AT&T, Ford, Motorola, and other large . companies. 4.      In contrast, the challenge for management is less demanding when teams are introduced where employees have strong collectivism values--such as in Japan or Mexico. 5.      The challenge of forming teams will also be less in new organizations that use teams as their initial form of structuring work. Saturn Corporation, the ability to be a good team player was a hiring prerequisite.     C.    What Roles Do Team Members Play? 1.      High-performing work teams properly match people to various roles. 2.      There are nine potential roles that work team members often can "play." See Exhibit 9-5. 3.      Creator-innovators are imaginative and good at initiating ideas or concepts. They are typically very independent and prefer to work at their own pace in their own way--and very often on their own time. 4.      Explorer-promoters like to take new ideas and champion their cause. They are good at picking up ideas from the creator-innovator and finding the resources to promote those ideas. They often lack the patience and control skills to ensure that the ideas are implemented. 5.      Assessor-developers have strong analytical skills. They're at their best when given several different options to evaluate and analyze before a decision is made. 6.      Thruster-organizers like to set up operating procedures to get things done. They set goals, establish plans, organize people, and establish systems to ensure that deadlines are met. 7.      And, somewhat like thruster-organizers, concluder-producers are concerned with results. Their role focuses on insisting that deadlines are kept and commitments fulfilled。Concluder-producers take pride in producing a regular output to a standard. 8.      Controller-inspectors have a high concern for establishing and enforcing rules and policies. They are good at examining details and making sure that inaccuracies are avoided. They want to check all the facts and figures to make sure they're complete. Upholder-maintainers hold strong convictions about the way things should be done. They will defend the team and fight its battles strongly supporting fellow team members. These individuals provide team stability. 9.      Reporter-advisers are good listeners and don't tend to press their point of view on others. They tend to favor getting more information before making decisions. They perform an important role in encouraging the team to seek additional information and discouraging the team from making hasty decisions. 10.   The linkers overlaps the others. This role can be "played" by any of the previous eight roles. Linkers try to understand all views. They are coordinators and integrators. They dislike extremism and try to build cooperation among all team members. 11.   If forced to, most individuals can perform in any of these roles. Most have two or three they strongly prefer. 12.   Managers need to select team members on the basis of an appropriate mix of individual strengths, and allocate work assignments that fit with each member's preferred style.   A.    How Can a Manager Shape Team Behavior? 1.      The three most popular ways include proper selection, employee training, and rewarding the appropriate team behaviors. B.     What Role Does Selection Play? When hiring team members, the organization should ensure that applicants can fulfill their team roles. Some job applicants lack team skills. If team skills are woefully lacking, don't hire that candidate. A candidate who has some basic team skills but needs more refinement can be hired on a probationary basis and be required to undergo training. There are nine potential team roles. 1. An adviser encourages the search for more information. 2. A linker coordinates and integrates team functions. 3. A creator initiates creative ideas. 4. A promoter champions ideas after they are initiated. 5. An assessor offers insightful analysis of opinions. 6. An organizer provides structure. 7. A producer provides direction and follow-through. 8. A controller examines details and enforces rules. 9. A maintainer fights external battles. Successful work teams have people to fill all of these roles and have selected them based on their skills and preferences. On many teams, members will play multiple roles. By matching individual preferences with team role demands, managers can increase the likelihood that team members will work well together. While some workers will not be trainable, the most popular methods for turning individuals into team players are proper selection, employee training, and rewarding appropriate team behaviors. When hiring team members, managers should ensure that individuals can fulfill team roles as well as technical requirements. Even independent workers can be trained to become team players through workshops that cover team problem solving, communications, negotiations, conflict resolution, the five stages of team development, and coaching skills. The reward system must encourage cooperation rather than competition. For instance, promotions, pay raises, and other forms of recognition should be not only based on individual excellence but also on collaboration and team work. Also, teamwork can be its own reward because it is exciting and satisfying to be an integral part of a successful team. How Can a Manager Reinvigorate a Mature Team? Effective teams can become stagnant, initial enthusiasm can turn to apathy, and diverse perspectives can be replaced by cohesiveness or groupthink. Another problem area for a mature team could be that its early success was earned by solving easy problems. As the problems get more complex, mature teams may try to handle them with established processes and routines. This can cause conflicts that hinder communication and inhibit the performance of the team. Managers can use four techniques to invigorate a mature team. First, prepare the members of the team to deal with the problems that will surface as their team matures. Second, offer refresher training in communication, conflict resolution, or team processes. Third, offer advanced training in problem-solving, interpersonal, and technical skills. Fourth, encourage teams to treat their development as a constant learning experience. Just as organizations use continuous improvement program, teams should approach their own development as part of a search for continuous improvement. CONTEMPORARY TEAM ISSUES A.    Why Are Teams Central to Continuous Process Improvement Programs? 1.      The essence of continuous improvement is process improvement, and employee participation is the linchpin of process improvement. 2.      As one author put it, "None of the various processes and techniques will catch on and be applied except in work teams." 3.      All such techniques and processes require high levels of communication and contact, response, adaptation, and coordination and sequencing. 4.      Teams provide the natural vehicle for employees to share ideas and implement improvements. McDonnell-Douglas example. Examples from Ford Motor Company and Allegiance HealthCare Corporation. 5.      Ford began its continuous improvement efforts in the early 1980s, with teams as the primary organizing mechanism. The teams should be small enough to be efficient and effective. be properly trained in the skills their members will need. be allocated enough time to work on the problems they plan to address. be given the authority to resolve the problems and implement corrective action. have a designated "champion" who helps the team get around roadblocks that arise. 6.      At Allegiance HealthCare, teams of people from different levels within the company are used to develop goals and objectives that are linked to the organization's strategic initiatives, and deal with quality problems that cut across various functional areas.   B.     How Does Workforce Diversity Affect Teams? 1.      Managing diversity on teams is a balancing act. 2.      Diversity typically provides fresh perspectives on issues but it is difficult to manage. 3.      The strongest case for diversity is when teams are engaged in problem-solving and decision-making tasks. Heterogeneous teams bring multiple perspectives to the discussion, increasing the likelihood that the team will identify creative or unique solutions. The lack of a common perspective usually means diverse teams spend more time discussing issues, which decreases the chances that a weak alternative will be chosen. 4.      The positive contribution that diversity makes to decision-making teams undoubtedly declines over time. 5.      Expect the value-added component of diverse teams to increase as members become more familiar with each other and the team becomes more cohesive. 6.      Studies tell us that members of cohesive teams have greater satisfaction, lower absenteeism, and lower attrition from the group. Yet cohesiveness is likely to be lower on diverse teams. 7.      So here is a potential negative of diversity. It is detrimental to group cohesiveness. If the norms of the team are supportive of diversity, then a team can maximize the value of heterogeneity while, at the same time, achieving the benefits of high cohesiveness. One of the central characteristics of continuous process improvement is the use of teams. Ford Motor Company began its continuous improvement efforts in the early 1980s, and teams were the primary organizing mechanism. When designing the quality problem-solving teams, Ford’s management realized that the teams should be (1) small enough to be efficient and effective, (2) be properly trained in the skills their members will need, (3) be allocated enough time to work on the problems they plan to address, (4) be given the authority to resolve the problems and implement corrective action, and (5) have a designated “champion” whose job it is to help the team get around roadblocks. Managing diversity on teams is a balancing act. Diversity typically provides fresh perspectives on issues, but it makes it harder to unify the team and reach agreements. When solving problems or making decisions, heterogeneous teams bring multiple perspectives into play, thereby increasing the likelihood that the team will identify creative or unique solutions. In addition, the lack of a common perspective causes diverse teams to spend more time discussing issues, which minimizes the chances that a weak alternative will be chosen. A potential problem with diversity is that it may be detrimental to cohesiveness. However, the relationship between cohesiveness and productivity can be moderated by performance-related norms. If the norms of the team support diversity, the team can maximize the value of heterogeneity while achieving the benefits of high cohesiveness.   A.    Why Is There Movement toward a Boundary less Organization? 1.      A boundary less organization is not defined or limited by boundaries or categories imposed by traditional structures. 2.      It blurs the historical boundaries around an organization by increasing its interdependence with its environment. Sometimes called network organizations, learning organizations, barrier-free, modular, or virtual corporations. Boundary less structures cut across all aspects of the organization. 3.      Boundary less organizations are not merely flatter organizations. They attempt to eliminate vertical, horizontal, and inter-organizational barriers. To do this frequently requires an internal revolution. Horizontal organizations require multidisciplinary work teams who have the authority to make decisions, to do the work, and to be held accountable for measurable outcomes. 4.      What factors have contributed to the rise of boundary less organizational designs? Globalization of markets and competitors has played a major role. An organization's needed to respond and adapt to the complex and dynamic environment. Changes in technology have also contributed to this movement. 5.      A boundary less organization provides the flexibility and fluid structure that facilitates quick movements to capitalize on opportunities. The boundary less organization is made possible by networked computers that expedite communication across intra-organizational and inter-organizational boundaries. The elimination of boundaries in contemporary organizations is being driven by global markets and competitors, innovative technology, and volatile business environments. This method minimizes the chain of command, limits spans of control, and replaces departments with empowered teams. Cross-hierarchical teams, participative decision making, and 360 degree performance appraisals dismantle vertical boundaries. Cross-functional teams, project-driven activities, lateral transfers, and job rotation minimize horizontal boundaries. Globalization, strategic alliances, customer-organization linkages, and telecommuting overcome external boundaries. The term organization culture refers to a system of meaning that members share and that distinguishes the organization from others. This system strongly influences how employees will behave while they are at work. The culture of an organization can be analyzed based on how it rates on ten characteristics, which are relatively stable and predictable over time. Member identify is the degree to which employees identify with the organization as a whole rather than with their type of job or professional expertise. Group emphasis is the degree to which work activities are organized around groups rather than individuals. People focus is the degree to which the decisions of management take into consideration the effect of outcomes on people. Unit integration is the degree to which organizational units work in a cooperative or independent manner. Control is the degree to which regulations, rules, and direct supervision are used. Risk tolerance is the degree to which employees are encouraged to be aggressive and innovative. Reward criteria is the degree to which rewards are allocated on employee performance rather than seniority or favoritism. Conflict tolerance is the degree to which employees are encouraged to air conflicts and criticisms openly. Means-end orientation is the degree to which management focuses on results rather than the techniques used to achieve them. Open-systems focus is the degree to which the organization monitors and responds to changes in the external environment. I.      ORGANIZATION CULTURE A.    What Is an Organization Culture? 1.      A system of shared meaning. 2.      Organizations have cultures that govern how their members should behave. 3.      Systems or patterns of values, symbols, rituals, myths, and practices evolve over time. 4.      These shared values determine what employees see and how they respond to their world.   B.     How Can Cultures Be Assessed? 1.      Currently there is no definitive method for measuring an organization's culture, 2.      Cultures can be analyzed by assessing how an organization rates on ten characteristics. These characteristics are covered in Exhibit 5-13. These ten characteristics are relatively stable and permanent over time.   C.    Where Does an Organization's Culture Come from? 1.      An organization's culture usually reflects the vision or mission of the organization's founders. The founders also have biases on how to carry out the idea. They are unconstrained by previous customs or ideologies. The small size of most new organizations also helps the founders impose their vision. 2.      An organization's culture results from the interaction between The founders' biases and assumptions. What the first employees learn subsequently from their own experiences.   D.    How Does Culture Influence Structure? 1.      An organization's culture may have an effect on an organization's structure, depending on how strong, or weak, the culture is. 2.      Organizations that have a strong culture--accepting these dominant values creates behavioral consistency. The organization's culture actually can substitute for the rules and regulations. Strong cultures can create predictability, orderliness, and consistency without the need for written documentation. 3.      The stronger an organization's culture, the less need for concern with formal rules and regulations.   Learning Outcomes Describe the human resource management process, Learn how government regulations affect human resource decisions, Study job descriptions and job specifications, Contrast recruitment and downsizing options, Explain how validity and reliability impact selection Review various selection devices , Identify various training methods,Review performance evaluation techniques, Review compensation administration and factors that affect wage structures, Define sexual harassment, family-friendly benefits, labor-management cooperation, workplace violence, and layoff-survivor sickness Human resource management (HRM) is the management function that is concerned with getting, training, motivating, and keeping competent employees. While some large organizations have Human Resources Departments, not only small-business managers but also many managers who work for large companies must make human resource decisions: recruiting candidates, reviewing application forms, interviewing applicants, inducting new employees, appraising employee performance, and providing training. To hire competent, high-performing employees who can sustain their performance over the long-term, an organization should follow an eight-step human resource management process (see the above slide). The first three steps represent employment planning, adding staff through recruitment and reducing staff by downsizing, and selecting competent employees. These new employees must be adapted to the organization (orientation) and their job skills must be kept current (training and development). The last steps in the HRM process are performance appraisals, compensation and benefits, and safety and health. These elements are used to identify employment goals, correct performance problems, and promote sustained high-level performance. THE LEGAL ENVIRONMENT OF HRM? The Expanding Influence of the Federal Government 1. See Exhibit 6-2 for examples. 2. Today's employers must ensure that equal employment opportunities exist for job applicants and current employees. Exceptions can occur only when special circumstances exist. Example--a community fire department can deny employment to a firefighter applicant who is confined to a wheelchair. But if that same individual is applying for a desk job, such as fire department dispatcher, the disability cannot be used as a reason to deny employment. 3. Balancing the "should and should-nots" of complying with these laws often falls under the realm of affirmative action. The organization actively seeks to enhance the status of members from protected groups. Managers are not completely free to choose whom they hire, promote, or fire. Employment planning translates organizational mission and objectives into a personnel plan. Assessing future human resource needs. Developing a program to meet future human resource needs. How Does an Organization Conduct an Employee Assessment? Management begins by generating a human resource inventory to assess what talents and skills are currently available in the organization. . The input for this report is derived from forms completed by employees. This inventory enables management to assess what talents and skills are currently available in the organization. Another part of the current assessment is the job analysis. Job analysis is more fundamental than an inventory and is a lengthy process, one in which work flows are analyzed and behaviors that are necessary to perform jobs are identified. Ultimately, the purpose of job analysis is to determine the kinds of skills, knowledge, and attitudes needed to successfully perform each job. This information is then used to develop job descriptions and job specifications. A job description is a written statement of what a jobholder does, how it is done, and why. It typically portrays job content, environment, and conditions of employment. The job specification states the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully. It identifies the knowledge, skills, and attitudes needed to do the job effectively. Both are important documents for recruiting and selecting. The job description can be used to describe the job to potential candidates. The job specification keeps the manager's attention on qualifying candidates and the list of qualifications necessary for an incumbent to perform a job. How Are Future Employee Needs Determined? Future human resource needs are determined by the organization's strategic direction. Demand for human resources is a result of demand for the organization's products or services. The overall organizational goals and the resulting revenue forecast provide the major input determining the organization's human resource demand requirements. After assessing current capabilities and future needs, a program can then be developed that matches these estimates with forecasts of future labor supply. Recruitment is the process of locating, identifying, and attracting capable employees. Many companies are finding new employees on the World Wide Web. The source that is used should reflect the local labor market, the type or level of position, and the size of the organization. Are certain recruiting sources better than others? Employee referrals can produce the best applicants for two reasons. First, current employees screen applicants before referring them. Second, current employees believe that their reputations with the firm will be reflected in the candidates that they recommend; so, they reflect only those who they believe will not make them look bad. Employee referrals, however, may not generate the diversity of applicants required by EEOC laws. RECRUITMENT AND SELECTION Where Does a Manager Look to Recruit Candidates? Candidates can be found by using several sources--including the World Wide Web. See Exhibit 6-3. The source that is used should reflect the local labor market, the type or level of position, and the size of the organization. Are certain recruiting sources better than others? Certain recruiting sources produce superior candidates. The majority of studies have found that employee referrals produce the best candidates. Those employees prescreen applicants referred by current employees. Current employees often refer others only when they are reasonably confident that the referral won't make them look bad. Employee referrals may not increase the diversity. How does a manager handle layoffs? Downsizing has become a relevant means of meeting the demands of a dynamic environment. What are a manager's downsizing options? Exhibit 6-4 summarizes a manager's major downsizing options. Regardless of the method chosen, employees may suffer. In the past decade, most large . businesses, as well as many government agencies and small businesses, have been forced to shrink the size of their workforce or restructure their skill composition. Downsizing has become a relevant means of meeting the demands of a dynamic environment. The figure above presents the following major downsizing options: Firing is permanent involuntary termination. Layoffs are temporary involuntary termination. Attrition is not filling openings creating by voluntary resignations or retirement. Transfers involve moving employees either laterally or downward. Reduced workweeks require employees to work fewer hours per week, share jobs, or work part time. Early retirements provide incentives to more senior employees for retiring before their normal retirement date. Job sharing means that employees share one full-time position. Once the recruiting effort has developed a pool of candidates, the next step in the employment process is to identify who is “best” qualified for the job. Given performance criteria chosen by management, selection seeks to predict which applicants will be successful if hired. In essence, then, the selection process is a prediction exercise. Any selection decision can result in four possible outcomes: two correct decisions and two errors. Problems occur when managers either reject candidates who would have performed successfully on-the-job (reject errors) or accept those who perform poorly (accept errors). Therefore, effective selection activity reduces the probability of making accept or reject errors and increases the probability of making correct decisions. When a selection device measures the same thing consistently, it exhibits reliability. To be effective predictors, selection devices must possess and acceptable level of consistency. If a selection device contains a proven relationship between the selection device and some relevant criterion it demonstrates validity. The burden is on management to verify that any selection device it uses to differentiate applicants is related to job performance. Is There a Basic Premise to Selecting Job Candidates? The selection process is a prediction exercise, which applicants will be successful if hired. "Successful" in this case means performing well on the criteria the organization uses to evaluate its employees. Any selection decision can result in four possible outcomes. Shown in Exhibit 6-5. A decision is correct when. The applicant was predicted to be successful and later proved to be. The applicant was predicted to be unsuccessful, rejected, and, if hired, would not have been able to do the job. Problems occur, however, when we make reject errors or accept errors. Reject errors can open the organization to charges of employment discrimination. Accept errors cost the organization training costs, profits forgone because of the employee's incompetence, and the cost of severance, etc. What is reliability? Reliability addresses whether a selection device measures the same thing consistently. If a test is reliable, any single individual's score should remain fairly stable over time, assuming that the characteristics it is measuring are also stable. No selection device can be effective if it is low in reliability. To be effective, selection devices must possess an acceptable level of consistency. What is validity? A proven relationship between the selection device used and some relevant measure. The burden is on management to verify that any selection device it uses is valid.   Typical written tests include tests of intelligence, personality, aptitude, ability, interest, and integrity. Written tests were widely used for twenty years after WWII. Beginning in the late 1960s, however, they fell into disfavor. They were frequently characterized as being discriminatory. Furthermore, many organizations could not validate that their written tests were job related. Since the 1980s, written tests have made a comeback for two reasons: the belief that properly designed written tests could reduce the likelihood of making poor hiring decisions and the fact that the cost of developing and validating written tests had fallen. Tests of intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability are moderately valid predictors for semiskilled and unskilled operative jobs. Intelligence tests are reasonably good predictors for supervisory positions. Since it can be argued that intelligence and other tested characteristics can be somewhat removed from actual on-the-job performance, the use of performance simulations tests has increased. Based on job analysis data, performance-simulation tests meet the requirement of job relatedness better than do written tests. Work sampling and assessment centers are the two best known types. Because content is essentially identical to job content, performance simulation tests should minimize allegations of employment discrimination. Moreover, because of the nature of their content and the methods used to determine content, well-constructed performance-simulation tests are valid predictors. How Effective Are Tests and Interviews as Selection Devices? Managers can use a number of selection devices to reduce accept and reject errors. The best-known devices include written and performance-simulation tests, and interviews. How do written tests serve a useful purpose? a) Typical written tests include tests of intelligence, aptitude, ability, and interest. b) Written tests were widely used for twenty years after World War II. c) They fell into disfavor in the late 1960s, frequently characterized as discriminatory. d) But, since the late 1980s, written tests have made a comeback. Poor hiring decisions are costly, and properly designed tests reduce their likelihood. The cost of developing and validating written tests for a specific job has come down. e) Tests of intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability are moderately valid predictors for many semiskilled and unskilled jobs. f) Intelligence tests are reasonably good predictors for supervisory positions. A high score on an intelligence test is not necessarily an indicator of performance. What are performance-simulation tests? a) Determining if an applicant can do a job, then having him/her do it. b) They are based on job analysis data and therefore are more job-related than written tests. c) Performance-simulation tests are made up of actual job behaviors rather than substitutes. d) The best-known performance-simulation tests are: Work sampling--a miniature replica of the job. Suited to routine jobs. Assessment centers--simulating real problems one may face on the job. For selecting managerial personnel. e) The advantage, because content is essentially identical to job content, performance-simulation should be a better predictor of short-term job performance. f) Well-constructed performance-simulation tests are valid predictors. The interview can exert a disproportionate influence on the selection decision. Therefore, the person with the best interview skills often gets the job, even though he or she may not be the most qualified. But, interviews are valuable for assessing an applicant’s intelligence, level of motivation, and interpersonal skills. Unstructured interviews are conducive to interviewer biases: favoring applicants who share their values, giving undue weight to negative information, and allowing the order in which applicants are interviewed to influence evaluations. Structured interviews provide standardized sets of questions, uniform methods of recording information, and standardized ratings of the qualifications of applicants. If interviews are not well structured and standardized, they can be biased. The following sums up research findings on interviews: Prior knowledge about the applicant will bias the interviewer. Interviewers hold stereotypes about what represents “good” applicants. Interviewers favor applicants who share their own attitudes. The order in which applicants are interviewed affects evaluations. Negative information is given unduly high weight. Interviewers determine an applicant’s suitability in the first five minutes of the interview. Interviewers forget much of an interview’s content within minutes after it has been ended. Interviews are most valid in determining an applicant’s intelligence, motivation, and interpersonal skills. Structured, well organized interviews are more effective than those that are loosely organized. Is the Interview Effective? 1. The interview, along with the application form, is an almost universal selection device. 2. The value of the interview as a selection device has been the subject of considerable debate. 3. Interviews are reliable and valid selection tools when structured and well organized. 4. The typical interview often provides little in the way of valuable information. 5. All kinds of potential biases can creep into interviews. Prior knowledge about the applicant will bias the interviewer's evaluation. The interviewer tends to hold a stereotype of what represents a "good" applicant. The interviewer tends to favor applicants who share his/her own attitudes. The order in which applicants are interviewed will influence evaluations. The order in which information is elicited during the interview will influence evaluations. Negative information is given unduly high weight. Deciding on applicant's suitability within the first four or five minutes of the interview. Forgetting much of the interview's content within minutes after its conclusion. Most valid in determining an applicant's intelligence, level of motivation, and interpersonal skills. Structured and well-organized interviews are more reliable. 6. Managers can make interviews more valid and reliable. See Developing a Management Skill. 7. How can you close the deal? Selling applicants on the job and only exposing positive characteristics may lead to a workforce that is dissatisfied and prone to high mover. Every job applicant acquires a set of expectations about the company and the job. Excessively inflated information can have negative effects on the company. Mismatched applicants are less likely to withdraw from the search process. Inflated information builds unrealistic expectations, quicker dissatisfaction. New hires are prone to become disillusioned if they feel they were misled. 8. A RJP includes both positive and negative information about the job and the company. a) Applicants given a realistic job preview hold lower and more-realistic job expectations. b) The result is fewer unexpected resignations by new employees. c) For managers, realistic job previews offer a major insight into the HRM process.   Every job applicant acquires, during the hiring process, a set of expectations about the company and the job for which he or she is interviewing. When the information an applicant receives is excessively inflated, several negative consequences can occur. First, mismatched applicants are less likely to withdraw from the application process. Second, because inflated information builds unrealistic expectations, new employees are less likely to become quickly dissatisfied and prematurely resign. Third, new hires are prone to disillusionment and reduced commitment to the organization when they face the unexpected harsh realities of the job. A realistic job preview (RJP) can increase job satisfaction among employees and reduce turnover. The RJP should include both positive and negative information about the job and the company. Doing so can ensure that the applicants are well-matched to the jobs for which they are being considered and that their expectations about life on the job are realistic. As a result, those who are hired should be more committed to the organization and less likely to become problem employees. Besides having the requisite knowledge, skills, and abilities to perform on the job, new hires must be acclimated to the organization’s culture (orientation) and trained to do the job (training). The major objectives of employee orientation are to reduce the anxiety level that all new employees feel; to familiarize them with the job, the work unit, and the organization; and to facilitate the outsider-insider transition. Successful orientation maximizes new hire on-the-job success and minimizes turnover. A.    How Do We Introduce New Hires to the Organization? 1.      Once selected, the job candidate needs to be introduced to the job and organization. 2.      The major objectives of orientation: Reduce the initial anxiety. Familiarize new employees with the job, the work unit, and the organization. Facilitate the outsider-insider transition. 3.      Job orientation expands on the information the employee obtained during the recruitment. This is the time to rectify any unrealistic expectations new employees might hold. 4.      Work-unit orientation familiarizes the employee with: The goals of the work unit Clarifies what his/her job contributes to the unit's goals. Introduction to his/her coworkers. 5.      Organization orientation informs the new employee about the organization's objectives, history, philosophy, procedures, and rules. 6.      Management has an obligation to make the integration of the new employee into the organization as smooth and as free of anxiety as possible. Employee training is a learning experience that involves changing skills, knowledge, attitudes, or behavior. Managers can be alerted to training needs by numerous signals: for instance, productivity related signals like decreases in output and quality or increases in accidents; and, future elements like jobs that have been redesigned or technological breakthroughs. Most training takes place on the job. Such training is convenient and cost effective. But, on-the-job training can disrupt the workplace, and some skills are too complex to learn on the job. In such cases, training should take place outside of the work setting. A.    What Is Employee Training? 1.      Employee training is a learning experience in that it seeks a relatively permanent change in employees such that their ability to perform on the job improves. It involves changing skills, knowledge, attitudes, or behavior. 2.      Determining training needs typically involves generating answers to several questions. See Exhibit 6-6. 3.      Warning signals--decreases in production numbers, lower quality, more accidents, and higher scrap or rejection rates. 4.      How are employees trained? Most training takes place on the job. OJT can disrupt the workplace and result in an increase in errors while skill training is too complex to learn on the job. 5.      What are some of the typical methods used? Two ways of classifying training, on-the-job or off the job. More popular training methods in Exhibit 6-7. 6.      How can managers ensure that training is working? Measure results. It is difficult to generalize how training programs are typically evaluated. The reactions of participants or managers, while easy to acquire, are the least valid. Training must also be evaluated in terms of how much the participants learned, did their behavior change, and whether the training program achieved its desired results. PERFORMANCE MANAGEMENT A.    What Is a Performance Management System? 1.      A performance management system is a process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well as to provide documentation to support any personnel actions. 2.      Specific techniques--see Exhibit 6-8. 3.      The written essay requires no complex forms or extensive training to complete. A "good" or "bad" appraisal may be determined as much by the evaluator's writing skill as by the employee's actual level of performance. 4.      Critical incidents focuses the evaluator's attention on those critical or key behaviors that separate effective from ineffective job performance. 5.      Graphic rating scales are one of the oldest and most popular methods, This method lists a set of performance factors. The evaluator then goes down the list and rates each factor on an incremental scale. 6.      Behaviorally anchored rating scales (BARS). Combines the major elements from the critical incident and graphic rating scale. 7.      The 360-degree appraisal. Seeks performance feedback from oneself, bosses, peers, team members, customers, etc. Used in approximately 90 percent of the Fortune 1000 firms. 8.      Traditional performance evaluations systems may be archaic. Supervisors having greater work responsibility and more employees. The growth of project teams and employee involvement places the responsibility of evaluation where people are better able to make an accurate assessment. 9.      The 360-degree feedback process also has some positive benefits for development concerns. Many managers simply do not know how their employees truly view them and the work they have done. 10.   Research studies into the effectiveness of 360-degree performance appraisals report positive results. Written essays that describe an employee’s performance and suggestions for improvement require no complex forms or extensive training. But a good or bad appraisal may depend as much on the writing skill of a manager as on the actual performance of an employee. With the critical incidents method, the appraiser writes down what an employee did that was especially productive or counterproductive. The key is to cite specific behaviors. With graphic rating scales, performance factors are listed such as quantity and quality of work, depth of knowledge, or initiative. The appraiser then rates each factor on an incremental scale. This method can not provide the depth of information of essays or critical incidents, but it is less time consuming to develop and administer, and yields results that can be quantified. Behaviorally anchored rating scales BARS combine the critical incidents and graphics rating scale approaches. The appraiser rates employees on items along a continuum. The points along the scale are examples of actual on-the-job behavior rather than general descriptions or traits. Militiaperson comparisons are relative measuring devices. Group order ranking requires the rater to place employees into a particular classification, such as the top one-fifth. Individual ranking orders employees from best to worst. Paired comparisons rank each employee with all other employees and rates each as either the weaker or superior member of the pair. With MBO, employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their jobs. Because MBO emphasizes ends rather than means, this method allows managers the to choose the best path for achieving their goals. A 360-degree appraisal seeks feedback for the person being rated from a variety of sources: such as peers, supervisors, and customers. Research shows that 360-degree appraisals offer more accurate feedback, empower employees, reduce subjective factors in evaluation, and develop leadership in an organization. If an employee is mismatched for the job or does not have adequate training, the worker can either be moved to another job or trained to perform the current job. If the employee has a discipline problem, the manager can rely on employee counseling and disciplinary action. A process intended to help an employee overcome performance-related problems, employee counseling attempts to discover and remedy the reasons for his or her poor performance. Employee counseling can benefit both the company and the employee. But, if the worker either cannot or will not accept help, then management must use discipline to enforce the rules and regulations of the organization. A.    Should We Compare People with One Another or against Some Set Standards? 1.      Multi-person comparisons compare one person's performance with that of others. It is a relative, not an absolute, measuring device. 2.      The three most popular uses: group order ranking, individual ranking, and paired comparison. 3.      The group order ranking. The evaluator places employees into a particular classification such as "top one-fifth." The managers rank all their employees. 4.      The individual ranking approach The evaluator merely lists the employees in order from highest to lowest. Only one can be "best." 5.      In the paired comparison approach. Each employee is compared with every other employee in the comparison group and rated as either the superior or weaker member of the pair. Each employee is assigned a summary ranking based on the number of superior scores. This approach can become unwieldy with large numbers of employees. A.    Isn't MBO an Appraisal Approach, Too? 1.      Introduced in Chapter 3. 2.      MBO is also a mechanism for appraising performance. a)     The preferred method for assessing managers and professional employees. 3.      Employees are evaluated by how well they accomplish a specific set of objectives. 4.      MBO's popularity among managerial personnel is probably due to its focus on end goals. 5.      This emphasis aligns with MBO's concern with quantitative measures of performance.   B.     What Happens When Performance Falls Short? 1.      What if an employee is not performing in a satisfactory manner? 2.      A manager needs to find out why. a)     If it is because the employee is mismatched, something relatively simple can be done. b)     If the problem is associated with the desire to do the job, it becomes a discipline problem. (1)   A manager can rely on employee counseling and/or can take disciplinary action. 3.      Employee counseling is a process designed to help employees overcome performance-related problems. a)     It attempts to uncover why employees have lost their desire to work productively. b)     It is designed to find ways to "fix" the problem. c)     The premise--it is beneficial to both the organization and the employee. d)     If the employee can't or won't accept help, then disciplinary actions will be taken. How does management decide who will get paid $ an hour and who will receive $325,000 per year? The answer lies in compensation administration: the process of determining a cost-effective pay structure that attracts and retains competent employees, provides incentives for hard work, and ensures that pay levels will be perceived as fair. The primary determination of pay is the kind of job an employee performs: that is, the higher the skills, knowledge, and abilities—and the greater the authority and responsibility—the higher the pay. Other factors which influence employee compensation are the nature of the business, the environment surrounding the job, geographic location, and employee performance levels and seniority. Irrespective of the foregoing factors, there is one other most critical factor: management’s compensation philosophy. As no financial rewards intended to enrich employee’s lives, today’s employee benefits programs seek to provide something that each employee can value. The scope of these benefits varies from social security and worker’s compensation to paid vacation time, retirement plans, and life, health, or disability insurance. I.           COMPENSATION AND BENEFITS A.    How Are Pay Levels Determined? 1.      The goals of compensation administration are: To design a cost-effective pay structure that will attract and retain competent employees. To provide an incentive for these individuals to exert high energy levels at work. To ensure that pay will be perceived as fair by all employees. Fairness means that the established pay levels are adequate and consistent for the demands and requirements of the job. 2.      The primary determination of pay is the kind of job an employee performs. Different jobs require different kinds and levels of skills, knowledge, and abilities and different levels of responsibility and authority. 3.      Pay levels may be influenced by the kind of business, the environment surrounding the job, geographic location, and employee performance levels and seniority. 4.      The most important factor is management's compensation philosophy. Some organizations don't pay employees any more than they have to. Others commit to a compensation philosophy of paying at or above area wage levels.   B.     Why Do Organizations Offer Employee Benefits? 1.      When an organization designs its overall compensation package, it has to take into account another element, employee benefits. 2.      Employee benefits are no financial rewards that are designed to enrich employees' lives. Once viewed as "fringes," they have grown in importance and variety. 3.      The benefits offered by an organization will vary widely in scope. 4.      Most are required to provide Social Security and workers' and unemployment compensations. 5.      Organizations also provide an array of benefits, How does management decide who will get paid $ an hour and who will receive $325,000 per year? The answer lies in compensation administration: the process of determining a cost-effective pay structure that attracts and retains competent employees, provides incentives for hard work, and ensures that pay levels will be perceived as fair. The primary determination of pay is the kind of job an employee performs: that is, the higher the skills, knowledge, and abilities—and the greater the authority and responsibility—the higher the pay. Other factors which influence employee compensation are the nature of the business, the environment surrounding the job, geographic location, and employee performance levels and seniority. Irrespective of the foregoing factors, there is one other most critical factor: management’s compensation philosophy. As no financial rewards intended to enrich employee’s lives, today’s employee benefits programs seek to provide something that each employee can value. The scope of these benefits varies from social security and worker’s compensation to paid vacation time, retirement plans, and life, health, or disability insurance. Managers must use nontraditional recruiting sources to improve work force diversity—for instance, contacting women’s job networks, over-fifty clubs, urban job banks, disabled people’s training centers, ethnic newspapers, and gay-rights organizations. Then, management must make sure that the selection process does not discriminate. Once workers are hired, management must demonstrate that the organization is sensitive to their needs. Recognizing that orientation for women and minorities can be complex, many companies conduct consciousness-raising workshops and diversity programs for both current and new workers; add diversity goals to employee evaluations and promotions; and offer special mentoring programs for women and minorities. Almost all Fortune 500 companies in the United States have had sexual harassment complaints lodged against them by employees, and about one-third of them have been sued. According to estimates, sexual harassment costs the typical Fortune 500 company $ million a year in absenteeism, low productivity, and turnover. Sexual harassment can be defined as sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal or physical contact of a sexual nature. The courts have ruled that if a manager or agent for an organization commits sexual harassment, then the organization itself is liable. To avoid liability and do the right thing, managers must follow the organization’s established policy against sexual harassment. I.           CURRENT ISSUES IN HUMAN RESOURCES MANAGEMENT A.    How Can Workforce Diversity Be Managed? 1.      How does workforce diversity affect recruitment, selection, and orientation? 2.      Improving workforce diversity requires managers to widen their recruiting net. To increase diversity, managers must increasingly use non-traditional sources. 3.      Once a diverse set of applicants exists, efforts must be made to ensure that the selection process does not discriminate. Applicants need to be made comfortable with the organization's culture and be made aware of management' s desire to accommodate. 4.      Orientation is often difficult for women and minorities. Many organizations provide special workshops to raise diversity consciousness. The thrust of these efforts is to increase individual understanding of differences. A number of companies also have special mentoring programs for female and minority managers who have few role models.   B.     What Is Sexual Harassment? 1.      Sexual harassment is a serious issue in both public and private sector organizations. More than 16, 000 complaints are filed with the EEOC each year. It is estimated that it costs a "typical" Fortune 500 company $ million per year in absenteeism, low productivity, and turnover. Sexual harassment is a global issue. 2.      Sexual harassment is defined as any unwanted activity of a sexual nature that affects an individual's employment. It can occur between members of the opposite or of the same sex. Such an activity was generally protected under employment discrimination laws. In recent years, this problem has gained more recognition. 3.      Much of the problem is defining what constitutes this illegal behavior. 4.      The EEOC cites three situations in which sexual harassment can occur where verbal or physical conduct toward an individual: Creates an intimidating, offensive, or hostile environment. Unreasonably interferes with an individual's work. Adversely affects an employee's employment opportunities. 5.      For many organizations, it's the offensive or hostile environment issue that is problematic. 6.      The Supreme Court case of Meritor Savings Bank vs. Vinson supported the hostile environment concept; it also identified employer liability: An organization can be held liable for sexual harassment actions by its management team, employees, and even customers. 7.      What can a company do to protect itself? Educate all employees on sexual harassment matters and have mechanisms available to monitor employees. 8.      The courts want to know two things: Did the organization know about, or should it have known about, the alleged behavior? What did management do to stop it? 9.      In June 1998, the Supreme Court ruled that sexual harassment might have occurred even if the employee had not experienced any "negative" job repercussions. Case of Kimberly Ellerth, a marketing assistant at Burlington Industries. 10.   The case of Jerold Mackenzie vs. Miller Brewing. Mackenzie allegedly made inappropriate comments to a female employee based on something that was shown on the Seinfeld television show. In investigating the case, Miller officials determined that Mackenzie acted inappropriately. Acting in what they believed was good faith, Mackenzie was fired. Mackenzie challenged his firing, filing suit for wrongful termination, and he was awarded $18 million in punitive damages and $ million in compensatory damages. $ million of the total award was to be personally paid by the woman who filed the harassment complaint. 11.   What the Mackenzie case tells us is that the harasser has rights, too. No action should be taken against someone until a thorough investigation has been conducted. An independent and objective individual should review the results of the investigation before any action against the alleged harasser is taken. The harasser should be given an opportunity to respond to the allegation, and have a disciplinary hearing if desired.   C.    How Can Organizations Be Family-Friendly? 1.      Family-friendly benefits are so named because they are supportive of caring for one's family. These include such benefits as flextime, childcare, part-time employment, relocation programs, summer camp, parental leave, and adoption benefits. 2.      At the heart of such programs, however, are increasing child- and eldercare benefits. 3.      Family-friendly benefits are also addressing the issue of employees who have children and who can't (and won't) leave their family concerns behind when they go to work. 4.      Examples of Johnson & Johnson and Stratco. 5.      Another family concern: the large number of dual-career couples, 6.      An organization's human resource management policies need to reflect the special needs this situation creates for couples.   D.    Can Unions and Management Cooperate? 1.      Historically, the relationship between a labor union and management was built on conflict. 2.      But times have changed somewhat. Management has become increasingly aware that successful efforts to increase productivity, improve quality, and lower costs require employee involvement and commitment. Some labor unions have come to recognize that they can help their members more by cooperating with management rather than fighting them. 3.      Current . labor laws may have become a barrier to both parties' cooperative partners. As a case in point, the National Labor Relations Act was passed to encourage collective bargaining and to balance worker's power against that of management. It also sought to eliminate firms setting up company unions to undermine the efforts of outside unions organizing their employees. So the law prohibits employers from creating or supporting a "labor organization." Example--Electromation Inc. where the employer set up employee committees. Implication--companies must ensure that their quality circle programs, quality of work life, and other employee involvement programs are legal under federal labor laws. 4.      The current legal environment doesn't't prohibit employee-involvement programs in the United States. To comply with the law, employee-involvement programs must have independence. What kinds of actions would indicate that management does not dominate an employee-involvement program? Choosing program members through secret ballot program members wide latitude in deciding what issues to deal members to meet apart from that program members are not susceptible to dismissal by management.   E.     Can Mangers Prevent Workplace Violence? 1.      A much greater emphasis today is being placed on the increase of workplace violence. Twenty employees are murdered each week while at work. Homicide has become the number-two cause of work-related death in the United States. For women, it's the number-one cause of work-related death. More than one million employees are attacked each year, and more than 6 million threatened with bodily harm. 2.      This is not just a . phenomenon. 3.      Two factors have contributed greatly to this--domestic violence and disgruntled employees. 4.      How to prevent the violence from occurring on the job--and to reduce liability. First, the organization must develop a plan to deal with the issue. Organizations must also train their management personnel to identify troubled employees before the problem results in violence. Employee assistance programs (EAPs) can be designed specifically to help these individuals. Organizations should also implement stronger security mechanisms. 5.      Organization must be prepared to deal with the situation.   F.     How Do "Survivors" Respond to Layoffs? 1.      Many organizations have done a fairly good job of helping layoff victims. 2.      Although some affected individuals react very negatively to being laid off, the assistance offered reveals that the organization does care about its former employees. 3.      Unfortunately, very little has been done for those who have been left behind. 4.      Both victims and survivors experience feelings of frustration, anxiety, and loss. 5.      A new syndrome: layoff-survivor sickness. It is a set of attitudes, perceptions, and behaviors of employees who remain after involuntary employee reductions. Symptoms include job insecurity, perceptions of unfairness, guilt, depression, stress from increased workloads, fear of change, loss of loyalty and commitment, reduced effort, and an unwillingness to do anything beyond the required minimum. 6.      Managers may want to provide opportunities for employees to talk to counselors about their guilt, anger, and anxiety. Group discussions can also provide an opportunity for the "survivors" to vent their feelings. The following family-friendly benefits recognize that workers have responsibilities outside of the workplace: flextime or part-time work, parental leave, and adoption benefits. Working parents and those caring for elderly relatives need quality child care and elder care near their place of work. Management must also acknowledge the needs of dual-career couples. Historically, the relationship between a labor union and management was based on conflict. But times have changed somewhat. Management has realized that successful efforts to increase productivity, improve quality, and lower costs require employee involvement and commitment. Similarly, some labor unions have recognized that they can help their members more by cooperating with management rather than fighting it. Unfortunately, current . labor laws, passed during an era of mistrust and antagonism between labor and management, may be a barrier to both parties becoming cooperative partners. There is a growing concern for safety on the job because no organization is immune from workplace violence. Consider the following statistics. Twenty employees are murdered each week at work. Homicide is the number-two cause of work-related death in the United States. For women, it’s the number-one cause of work-related death. In the United States, more than one million employees are attacked each year, and more that six million are threatened with bodily harm. Because the circumstances of each incident are different, a specific plan of action for companies is difficult to detail. However, several suggestions can be made. First, the organization must develop a plan to deal with the issue. Furthermore, organizations must train managers to identify troubled employees before the problem results in violence. Organizations should also implement stronger security measures. Downsizing is a critical human resource management issue. Many organizations have helped lay-off victims through job-help services, psychological counseling, support groups, severance pay, extended health insurance benefits, and detailed communication. However, little has been done to help those who are left behind. While lay-off victims get to start over with a clean slate, survivors do not. As a result, layoff-survivor sickness has become a workplace problem. The symptoms include insecurity, guilt, depression, stress, fear, loss of loyalty, and reduced effort. To maintain morale and productivity, management must assure individuals who are still on-the-job that they are valuable to the organization. Learning Outcomes Contrast the “calm waters” and “white water rapids” metaphors for change Explain why people resist change Learn how to reduce resistance to change Define organization development and learn four OD techniques Review the causes and symptoms of stress Compare creativity and innovation Learn how organizations can stimulate innovation If it weren't for change, the manager's job would be relatively easy. Planning would be without problems. The issue of organization design would be solved. Decision-making would be dramatically simplified. Change is an organizational reality. Handling change is an integral part of every manager's job. A manager can change three things. Structure. Technology. People. See Exhibit 7-1.     Change is an alteration of an organization’s environment, structure, technology, or people. Because change is an organizational reality, handling it is an integral part of every manager’s job. What can a manager change? There are three categories: structure, technology, and people. Changes in structure consist of altering relationships, redesigning jobs, coordinating mechanisms, and modifying spans of control. Changes in technology consist of revising work processes, revamping work methods, and acquiring new equipment. Changes in people consist of altering expectations, attitudes, perceptions, and behavior. The external forces of change come from various sources. In recent years, the marketplace has affected firms by introducing new competition. Bell Atlantic, for example, is experiencing competition from cable companies to provide local phone service. Government laws and regulations are also an impetus for change. In 1990 the passage of the Americans with Disabilities Act required businesses to widen doorways, reconfigure restrooms, add ramps, and take other actions to improve accessibility. Technology also causes change. In the new millennium, the e-commerce and the Internet have changed how we sell products and access information. Economic changes, of course, affect almost all organizations. Dramatic decreases in interest rates in the late 1990s fostered significant growth in the housing market. This meant more jobs, more people working, and more sales for other businesses that support the building industry. What Are the Internal Forces Creating a Need for Change? Internal forces tend to originate primarily from the internal operations of the organization or from the impact of external changes. When management redefines or modifies its strategy, it often introduces a host of changes. Employees may have their jobs redesigned, need to undergo training to operate the new equipment, or be required to establish new interaction patterns within their formal group. An organization's workforce is rarely static; its composition changes. The compensation and benefits systems might also need to be reworked to reflect the needs of a diverse work force and market forces. Internal forces originate from the operations of the organization or from the impact of external changes: such as management redefining its strategies, new equipment entering the workplace, and demographic changes in the organization’s workforce. These forces lead to changes in the policies and practices of management. People who are the catalysts for change and manage the change process are change agents. A manager may be a change agent. However, the change agent can be a nonmanager—for example, an internal staff specialist or outside consultant. Management often uses outside consultants because they can offer a fresh perspective which insiders lack. But, they may not understand the organization’s history, culture, operating procedures, and personnel. Furthermore, outside change agents often initiate more drastic changes because they do not have to live with the repercussions after the changes have been implemented. How Can a Manager Serve as a Change Agent? Changes within an organization need a catalyst. People who act as catalysts and assume the responsibility for managing the change process are called change agents. Any manager can be a change agent. A no manager can also be a change agent. For major systemwide changes, internal management will often hire outside consultants to provide advice and assistance. Outside consultants can offer an objective perspective. But they may have an inadequate understanding of the organization's history, culture, operating procedures, and personnel. They are also prone to initiate more drastic changes than insiders. Internal managers who act as change agents may be: more thoughtful. Possibly more cautious. Two Views on the Change Process The "calm waters" metaphor envisions the organization as a large ship crossing a calm sea. Change surfaces as the occasional storm, a brief distraction in an otherwise calm and predictable trip. The "white water rapids" metaphor, the organization is seen as a small raft navigating a raging river with uninterrupted white water rapids. Change is a natural state and managing change is a continual process.   What Is the "Calm Waters" Metaphor? The "calm waters" metaphor dominated the thinking of practicing managers and academics. The prevailing model for handling change in calm waters is Lewin's three-step model. See Exhibit 7-2. According to Lewin, successful change requires unfreezing the status quo, changing to a new state, and refreezing the new change to make it permanent. The status quo can be considered an equilibrium state. Unfreezing is necessary to move from this equilibrium. The driving forces can be increased. The restraining forces can be decreased. The two approaches can be combined. Once unfreezing has been accomplished, the change itself can be implemented. The new situation needs to be refrozen so that it can be sustained over time. Unless this is done, there is a strong chance that the change will be short-lived. The objective of refreezing is to stabilize the new situation by balancing the driving and restraining forces. Lewin's three-step process treats change as a break in the organization's equilibrium state. Two metaphors exemplify the process of change. The calm waters metaphor likens the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm. The white water rapids metaphor likens an organization to a group of strangers on a small raft navigating the uninterrupted white water rapids of an unfamiliar river to an unknown destination in the dark of night. Until recently, the calm waters metaphor dominated the thinking of practicing managers and academics. Kurt Lewin’s three-step description of the change process epitomizes this metaphor. According to Lewin, successful change requires unfreezing the status quo, changing to a new state, and refreezing the change to make it permanent. The status quo represents a state of equilibrium that must be thawed in one of three ways for change to occur: 1. The driving forces which direct behavior away from the status quo can be increased. 2. The restraining forces which hinder movement from equilibrium can be decreased. 3. The two approaches can be combined. In the relatively calm environment of the 1950s through the early 1970s, Lewin’s model may have been workable. Given chaotic change and the global village, however, this metaphor is moribund. What Is the "White Water Rapids" Metaphor? The "white water" metaphor takes into consideration that environments are both uncertain and dynamic. Variable college curriculum example. The stability and predictability of the calm waters do not exist. Many of today's managers face constant change, bordering on chaos. Is the white water rapids metaphor merely an overstatement? No! Example of Converse Inc., of North Reading, Massachusetts. The white water rapids metaphor reflects uncertain, dynamic environments. The concepts of stability and predictability are relics of days gone by. Disruptions in the status quo are no longer occasional and temporary, only to be followed by “smooth sailing” and halcyon days. Many managers today never get out of the rapids. They face constant, wrenching change that boarders on chaos. These managers are playing a game that they have never played before that is governed by rules which are created as the game progresses. Few organizations today can treat change as the occasional ripple in a still pool. Too much is changing too fast! Complacency is a “luxury” because most competitive advantages last less than eighteen months. According to Tom Peters, the old saying, “If it ain’t broke, don’t fix it” is no longer relevant. In its place, he suggests “If it ain’t broke, you just haven’t looked hard enough. Fix it anyway.” Peters’ observation is consistent with current reengineering trends. And, the quantum changes required to remain competitive in the global marketplace cannot be overstated. Managers make changes to increase the effectiveness of their organizations. Change, however, can be a threat to managers and nonmanagers alike. So, organizations resist change, even when it is beneficial. People resist change for three reasons. In the first place, change substitutes ambiguity and uncertainty for the known. Even if workers do not like the current system of management, at least they know the ropes. People also resist change because they fear losing something they already possess. The greater their investment in the status quo, the more they resist change because they fear losing their position, money, friendships, or personal conveniences. Finally, people will resist any changes they do not believe are in the organization’s best interests. Does Every Manager Face a World of Constant and Chaotic Change? Not every manager faces a world of constant and chaotic change. But the set of managers who don't is dwindling rapidly. Few organizations today can treat change as the occasional disturbance. Most competitive advantages last less than eighteen months. People’s Express was described as the model "new look" firm; it went bankrupt. Southwest Airlines, and USAirways Metrojet use this no-frill model and are successful. Tom Peters, "If it ain't broke, you just haven't looked hard enough. Fix it anyway." I.      ORGANIZATIONAL CHANGE AND MEMBER RESISTANCE A.    Introduction 1.      As change agents, managers initiate change because they are concerned with improving their organization's effectiveness. 2.      Change can be a threat to managers. 3.      It can be a threat to nonmanagerial personnel as well. Six tactics can be used by change agents to deal with resistance. 1. Education and communication can help employees to understand why change is necessary. 2. Participation encourages individuals to support the changes that they decided upon. 3. Facilitation and support can be used to reduce resistance. 4. Negotiation means exchanging something of value for lessening resistance. 5. Manipulation involves covert influence attempts; cooptation uses participation and manipulation. Coercion is the application of direct threats or force on the resisters.   A.    Why Do People Resist Change? 1.      An individual is likely to resist change for three reasons: uncertainty, concern over personal loss, and the belief that the change is not in the organization's best interest. See Exhibit 7-3. 2.      Changes substitute ambiguity and uncertainty for the known. Employees in organizations often hold a dislike for uncertainty. 3.      The second cause of resistance is the fear of losing something already possessed. Change threatens the investment one has already made in the status quo. The more people have invested in the current system, the more they resist change. They fear the loss of their position, money, authority, friendships, personal convenience, or other benefits that they value. 4.      A final cause of resistance is a person's belief that the change is incompatible with the goals and best interests of the organization. If expressed positively, this form of resistance can be beneficial to the organization. A.    What Are Some Techniques for Reducing Resistance to Organizational Change? 1.      Dysfunctional resistance to change can be addressed with several tactics. See Exhibit 7-4. 2.      Education and communication. Assumes that much of the resistance lies in misinformation or poor communication. 3.      Participation involving those individuals directly affected by the change in the decision-making. This allows expression of feelings, increases the quality of the process, and increases employee commitment to the final decision. 4.      Facilitation and support Helping employees deal with the fear and anxiety associated with the change effort. 5.      Negotiation Exchanging something of value for lessening the resistance to the change effort. This technique may be quite useful when the resistance comes from a powerful source. 6.      Manipulation and cooptation Covert attempts to influence others about the change. It may involve twisting or distorting facts. Coercion involves the use of direct threats or force against the resisters. Change is an alteration of an organization’s environment, structure, technology, or people. Because change is an organizational reality, handling it is an integral part of every manager’s job. Changing structure means altering authority relationships, coordination mechanisms, centralization of authority, job design, or similar structural variables. Changing technology means modifying methods and equipment used to complete work processes. Changing people involves adjusting employee attitudes, expectations, perceptions, or behaviors. The term organizational development refers to a collection of techniques for understanding, changing, and developing work force effectiveness: process consultation, survey feedback, team building, and intergroup development. Intergroup development can change attitudes, stereotypes, and perceptions that groups have of each other. One method emphasizes problem solving. Once problems have been identified, team members can move to the integration phase of working together to develop solutions to improve intergroup relations. In process consultation, outside consultants help managers to perceive, understand, and act upon events with which they must deal. Consultants are not there to solve problems. Rather, they act as coaches to help managers diagnose which internal processes need improvement. Management can use the survey feedback approach to assess the attitudes of organizational members in order to identify and address the discrepancies among their perceptions. The following team building activities promote trust and openness between team members: goal setting, interpersonal development, role analysis, and team process analysis. I.      MAKING CHANGES IN THE ORGANIZATION A.    What Can a Manager Change? 1.      Changing structure includes any alteration in any authority relationships, coordination mechanisms, degree of centralization, job design, or similar organization structure variables. These structural components give employees the authority and means to implement process improvements. 2.      Changing technology encompasses modification in the way work is processed or the methods and equipment used. The primary focus on technological change in continuous improvement initiatives is directed at developing flexible processes to support better quality operations. Employees are constantly looking for things to fix. Work processes must be adaptable to continual change and fine-tuning. This adaptability requires an extensive commitment to educating and training workers. 3.      Changes in people refer to changes in employee attitudes, expectations, perceptions, or behaviors. They require a workforce committed to the organization's objectives of quality and continuous improvement. Again, necessitating proper education and training. It also demands an evaluation and reward system that supports continuous improvements.   B.     How Do Organizations Implement "Planned" Changes? 1.      Most change in an organization does not happen by chance. 2.      The effort to assist organizational members with a planned change is referred to as organization development.   C.    What Is Organization Development? 1.      Organization development (OD) is an activity designed to facilitate long-term organization-wide changes. 2.      Its focus is to constructively change the attitudes and values of organizational members so that they can more readily adapt to, and be more effective in achieving, the new directions of the organization? 3.      Organization leaders are, in essence, attempting to change the organization's culture. 4.      Fundamental to organization development is its reliance on employee participation.   D.    Are There Typical OD Techniques? 1.      Any organizational activity that assists with implementing planned change can be viewed as an OD technique. See Ethical Dilemma in Management. 2.      The more popular OD efforts rely heavily on group interactions and cooperation. 3.      Survey feedback efforts are designed to assess employee attitudes about and perceptions of the change they are encountering. Employees are generally asked to respond to a set of specific questions regarding how they view such organizational activities. The data the change agent obtains are used to clarify problems. 4.      In process consultation, outside consultants help managers to "perceive, understand, and act upon process events" with which they must deal. These might include workflow, informal relationships among unit members, and formal communications channels. Consultants are not there to solve these problems. Rather, they act, as coaches to help managers diagnose which interpersonal processes need improvement. 5.      Team building is generally an activity that helps work groups set goals, develop positive interpersonal relationships, and clarify the role and responsibilities of each team member. The primary focus is to increase each group's trust and openness toward one another. 6.      Intergroup development attempts to achieve the same results among different work groups.   Stress is a force or influence that a person feels when facing opportunities, constraints, or demands which are important yet uncertain. Stress can be positive in a situation that offers an opportunity for gain. But, stress is most often associated with constraints (barriers that keep someone from doing what he or she wants) and demands (things that take up someone’s time and require the person to shift priorities). Furthermore, when constraints or demands have an effect on an important event and the outcome is unknown, pressure is added—pressure resulting in stress. I.      STRESS: THE AFTERMATH OF ORGANIZATIONAL CHANGE A.    What Is Stress? 1.      Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires, and for which the outcome is perceived to be both uncertain and important. 2.      It is a complex issue. 3.      Stress can manifest itself in both a positive and a negative way. It is positive when the situation offers an opportunity for one to gain something. It is when constraints or demands are placed on us that stress can become negative. 4.      Constraints are barriers that keep us from doing what we desire. They inhibit you in ways that take control of a situation out of your hands. 5.      Demands may cause you to give up something you desire. Demands preoccupy your time and force you to shift priorities. 6.      When coupled with uncertainty about the outcome and importance of the outcome, constraints and demands can lead to potential stress. 7.      When constraints or demands have an effect on an important event and the outcome is unknown, pressure is added--pressure resulting in stress. 8.      It is important to recognize that both good and bad personal factors may cause stress. A Northwestern National Life Insurance study reported that more than 60 percent of workers surveyed experienced significant job stress resulting in more than $150 billion in lost time and productivity. 9.      And stress on the job knows no boundaries. In Japan, there is a concept called karoshi, which means death from overworking--employees who die after working more than 3000 hours the previous year. 10.   Employees in Germany and Britain, too, have suffered the ill effects of stress.   B.     Are There Common Causes of Stress? 1.      Factors that create stress can be grouped into two major categories-organizational and personal. See Exhibit 7-6. 2.      The discussion that follows organizes stress factors into five categories: task, role, and interpersonal demands; organization structure; and organizational leadership. 3.      Task demands are factors related to an employee's job. Design of the person's job, working conditions, and the physical work layout. Work quotas can put pressure on employees. The more interdependence between an employee's tasks and the tasks of others, the more potential stress there is. 4.      Role demands relate to pressures placed on an employee as a function of the particular role he or she plays in the organization. Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload is when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not clearly understood. 5.      Interpersonal demands are pressures created by other employees. 6.      Organization structure can increase stress. Excessive rules and an employee's lack of opportunity to participate in decisions. 7.      Organizational leadership represents the supervisory style of the organization's managers. 8.      Personal factors that can create stress include family issues, personal economic problems, and inherent personality characteristics. Some employees bring their personal problems to work with them. Employee personality can have an effect on how susceptible he/she is to stress. Type A behavior is characterized by feelings of a chronic sense of time urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure time. Only the hostility and anger associated with Type A behavior is actually associated with the negative effects of stress. Type B's never suffer from time urgency or impatience. And Type B's are just as susceptible to these same anxiety-producing elements.   C.    What Are the Symptoms of Stress? 1.      There are three general ways that stress reveals itself. 2.      Most of the early interest over stress focused heavily on physiological. High stress levels result in changes in metabolism, increased heart and breathing rates, increased blood pressure, headaches, and increased risk of heart attacks. Detecting these requires the skills of trained medical personnel; therefore, their relevance to HRM is negligible. 3.      Of greater importance to managers are psychological and behavioral symptoms of stress. 4.      The psychological symptoms can be seen as increased tension and anxiety, boredom, and procrastination--which can all lead to productivity decreases. 5.      So too, can the behaviorally related symptoms--changes in eating habits, increased smoking or substance consumption, rapid speech, or sleep disorders.   D.    How Can Stress Be Reduced? 1.      Some stress in organizations is absolutely necessary. Without it, there's no energy in people. 2.      Make sure that employees are properly matched to their jobs and that they understand the extent of their "authority." 3.      Letting employees know precisely what is expected of them, role conflict and ambiguity can be reduced. 4.      Redesigning jobs can also help ease work overload-related stressors. 5.      Regardless some employees will still be "stressed-out." To help deal with this issue; many companies have started employee assistance and wellness programs. 6.      Employee assistance programs (EAPs) as they exist today are extensions of programs that had their birth in . companies in the 1940s. It is estimated that . companies spend almost $1 billion each year on EAP programs and they save up to $ for every EAP dollar spent. 7.      Since their early focus on alcoholic employees, EAPs have ventured into new areas. One of the most notable is the use of EAPs to help control rising health insurance premiums, especially in the areas of mental health and substance abuse services. 8.      A wellness program is any type of program that is designed to keep employees healthy. These programs may include such things as smoking cessation, weight control, stress management, physical fitness, nutrition education, etc. Wellness programs are designed to help cut employer health costs, and to lower absenteeism and turnover by preventing health-related problems.   Factors that create stress can be grouped into two categories: organizational and personal. Organizational stress can be be classified in five ways. Task demands are related to an employee’s job: for example, the design of the job, working conditions, and physical work layout. Interdependence between an employee’s tasks and the tasks of others creates stress. Autonomy, on the other hand, tends to reduce stress. Role demands relate to pressure placed on an employee as a function his or her role in the organization. Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload occurs when an employee is expected to do more than time permits. Role ambiguity occurs when role expectations are not clearly understood, and the employee is not sure what he or she should do. Interpersonal demands are created by other employees. Lack of social support from colleagues and poor interpersonal relationships can be stressful. Organization structure can increase stress. A nonparticipative decision-making process or excessive rules can be potential sources of stress. Organizational leadership represents the supervisory style of management. Some managers establish unrealistic short-run performance pressures and excessively tight controls. When employees don’t measure up, they are fired. This leadership style flows down through the organization and affects all employees. Personal stress can be caused by illness, divorce, death in the family, and financial problems. Because employees bring their personal problems to work with them, a manager must take such personal factors into account when trying to manage workplace stress. In addition, some employees are more prone to stress. Consider the Type A-Type B dichotomy. Type A personalities are characterized by a chronic sense of urgency and an intense drive to compete. These ambitious, achievement oriented workers have difficulty accepting and enjoying leisure time. On the other hand, type B personalities are more relaxed and easy-going. Managers must recognize that Type A employees are more likely to show symptoms of stress, even if organizational and personal stress factors are low. Stress reveals itself in three general ways: physiological symptoms, such as heart attacks or ulcers; psychological symptoms, such as boredom, anxiety, and procrastination; and behavioral symptoms, such as substance abuse sleep disorders, or excessive absence. Most of the early interest in stress management focused heavily on health-related or physiological concerns: changes in metabolism, elevated blood pressure, and increased risk of heart attacks. Many of these physiological concerns require the skills of trained medical personnel, so their immediate and direct relevance to HRM is negligible. Of greater importance to managers are psychological and behavioral symptoms of stress that can be witnessed in the employee. Motorala 人事总监招聘面试场景（03、03、02对话节目） 提出“令人窘迫的问题”：假如若干年后不得不有人为你写悼词，你希望人们如何评价你？ 回答：我曾经给家人和朋友带来许多欢乐，同时曾生活在他们带给我的欢乐之中。 评价：看来你压力管理学得不错。 Without some stress, people would have no energy. Accordingly, stress reduction programs should target the dysfunctional aspects of stress. One way to reduce stress is to make sure that employees are properly matched to their jobs and that they know the extent of their “authority.” Furthermore, by letting employees know precisely what is expected, role conflict and ambiguity can be minimized. On-the-job stress can also be reduced by redesigning jobs and encouraging employee participation. Many companies have started employee assistance and wellness programs. An extension of substance abuse programs started in the 1940s, employee assistance programs (EAPs) have focused on new areas, such as health care. And studies suggest that organizations can save $5 for every EAP dollar spent. Designed to keep workers healthy, wellness programs focus on weight control, stress management, or physical fitness. Studies show that such programs control health care costs and reduce health related absenteeism. Given the dynamics of the global marketplace, organizations must create new products and adopt new technologies. So, they try to emulate innovative companies like du Pont, Sharp, Eastman Chemical, and 3M Company. Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas. Creative organizations develop novel approaches or unique solutions to challenges and opportunities. Innovation is the process of turning a creative idea into a marketable product, service, or operating method. Innovative organizations channel creativity into useful outcomes. I.      STIMULATING INNOVATION A.    "Innovate or die!" 1.      The rallying cry of today's managers. 2.      The standard of innovation to which many organizations strive is that achieved by such companies as du Pont, Sharp, Eastman Chemical, and the 3M Company. 3.      Management at 3M has developed a reputation for being able to stimulate innovation over a long period of time. 4.      What's the secret to 3M's success?   B.     How Are Creativity and Innovation Related? 1.      Creativity means the ability to combine ideas in a unique way or to make unusual associations between ideas. 2.      An organization that stimulates creativity is one that develops novel approaches to things or unique solutions to problems. 3.      Innovation is the process of taking a creative idea and turning it into a useful product, service, or method of operation. Custom Foot, a Connecticut-based shoe manufacturer, has combined mass production with customized customer desires. Another example Novo Nordisk, a biotechnology company in Denmark. 4.      The innovative organization is characterized by the ability to channel its creative juices into useful outcomes. 5.      The 3M Company is aptly described as innovative because it has taken novel ideas and turned them into profitable products. 6.      So, too, is the highly successful microchip manufacturer Intel.   C.    What Is Involved in Innovation? 1.      Some people believe that creativity is inborn; others believe that it can be developed with training. 2.      Creativity can be viewed as a fourfold process consisting of perception, incubation, inspiration, and innovation. 3.      Perception involves how you see things. Being creative means seeing things from a unique perspective. 4.      Ideas go though a process of incubation. During this incubation period, employees should collect massive data that are stored, retrieved, studied, reshaped, and finally molded into something new. During this period, it is common for years to pass. 5.      Inspiration in the creative process is the moment when all your prior efforts successfully come together. 6.      Creative work requires an innovative effort. Innovation involves taking that inspiration and turning it into a useful product, service, or way of doing things. Thomas Edison is often credited with saying that "Creativity is 1 percent inspiration and 99 percent perspiration." That 99 percent, or the innovation, involves testing, evaluating, and retesting what the inspiration found.   D.    How Can a Manager Foster Innovation? 1.      There are three sets of variables that have been found to stimulate innovation. They pertain to the organization's structure, culture, and human resource practices.   E.     How Do Structural Variables Affect Innovation? 1.      First, organic structures positively influence innovation. They are lower in work specialization, have fewer rules, and are more decentralized than mechanistic structures; they facilitate the flexibility, adaptation, and cross-fertilization that make the adoption of innovations easier. 2.      Second, easy availability of plentiful resources provides a key building block for innovation. An abundance of resources allows management to afford to purchase innovations, bear the cost of instituting innovations, and absorb failures. 3.      Frequent inter-unit communication helps to break down possible barriers to innovation by facilitating interaction across departmental lines. 3M, for instance, is highly decentralized and takes on many of the characteristics of small, organic organizations.   F.     How Does an Organization's Culture Affect Innovation? 1.      Innovative organizations tend to have similar cultures. 2.      They encourage experimentation. 3.      They reward both successes and failures. They celebrate mistakes. 4.      An innovative culture is likely to have the following seven characteristics: Acceptance of ambiguity. Tolerance of the impractical. Low external controls. Tolerance of risk. Mistakes are treated as learning opportunities. Tolerance of conflict. Focus on ends rather than on means. Open systems focus.   G.    What Human Resource Variables Affect Innovation? 1.      Innovative organizations actively promote the training and development of their members so that their knowledge remains current, offer their employees high job security to reduce the fear of getting fired for making mistakes, and encourage individuals to become champions of change. 2.      Once a new idea is developed, champions of change actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the innovation is implemented. 3.      Research finds that champions have common personality characteristics: extremely high self-confidence, persistence, energy, and a tendency to take risks. 4.      Champions also display characteristics associated with dynamic leadership. They inspire and energize others. They are also good at gaining the commitment of others to support their mission. Champions have jobs that provide considerable decision-making discretion.   While some believe that creativity is inborn, others believe that creativity can be stimulated by using a fourfold process: perception, incubation, inspiration, and innovation. Moving from creative perception to reality is not automatic. Instead, ideas go through an incubation process. During incubation, employees collect, store, retrieve, study, and reshape data until they create something new. This process can take years. Inspiration occurs when all of your prior efforts successfully come together. Innovation means turning inspiration into a useful product, service, or methodology. Three sets of organizational variables stimulate innovation: structure, culture, and human resource practices. Structural variables affect innovation in three ways: (1) organic structures promote innovation, (2) plentiful resources stimulate innovation, and (3) effective communication overcomes barriers to innovation. All three require the commitment of top management. Innovative organizations encourage experimentation and risk-taking behavior by rewarding both successes and failures. Such organizations are likely to have the following seven characteristics: 1. Acceptance of ambiguity 2. Tolerance of the impractical 3. Low external controls 4. Tolerance of risk 5. Tolerance of conflict 6. Focus on ends rather than on means 7. Open systems focus Innovative organizations train and develop their members to keep their knowledge, skills, and abilities current; offer job security rather than the fear of being fired to promote risk-taking; and encourage individuals to become champions of change. Once a new idea is developed, champions of change promote the idea and build support. Then, they overcome resistance to the idea and ensure that the innovation is completed. These persons are self confident, energetic, persistent, risk-takers. In addition, they have the decision-making discretion to induce and implement innovations.