EMAN FINALS REVIEWER PDF

IE 001 Engineering Management Introduction to Management & Organization INTRO TO MANAGEMENT & ORG’S. INTENDED LEARNING OUTCOMES: 1. Who Are Managers? - Explain how managers differ from non- managerial employees - Discuss how to classify managers in organizations. 2. What Is Management?...

IE 001 Engineering Management Introduction to Management & Organization INTRO TO MANAGEMENT & ORG’S. INTENDED LEARNING OUTCOMES: 1. Who Are Managers? - Explain how managers differ from non- managerial employees - Discuss how to classify managers in organizations. 2. What Is Management? - Define management - Explain why efficiency and effectiveness are important to management 3. What Do Managers Do? - Describe the four functions of management. - Explain Mintzberg’s managerial roles. - Describe Katz’s 3 essential managerial skills INTRO TO MANAGEMENT & ORG’S. the importance of these skills changes depending on managerial level. 4. What Is an Organization? - Describe the characteristics of an organization. - Explain how the concept of an org. is changing. 5. What Are the Challenges to Managing? - Describe the current trends & issues facing mgrs. - Explain why customer service and innovation are important to the manager’s job. 6. Why Study Management? - Explain the universality of management concept. INTRO TO MANAGEMENT & ORG’S. Who is a Manager? - Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. INTRO TO MANAGEMENT & ORG’S. Exhibit 1.1 Respected Corporations in Canada INTRO TO MANAGEMENT & ORG’S. - Exhibit 1.1 shows the results of a recent KPMG/Ipsos-Reid study of Canadian companies found that those that made the Top 10 List “for great human resource practices” also scored high on financial performance and investment value. - As we see from the exhibit, six of the “Most Respected Corporations for Human Resource Management” placed in the top 10 on both financial measures, and nine scored in the top 10 of at least one of the financial measures. - KPMG is a Canadian leader in delivering Audit, Tax, and Advisory services, Ipsos- Reid is a global independent market INTRO TO MANAGEMENT & ORG’S. Types of Managers: 1. First-line Managers – are at the lowest level of management and manage the work of non-managerial employees. 2. Middle Managers – manage the work of first-line managers. 3. Top Managers – are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization INTRO TO MANAGEMENT & ORG’S. Exhibit 1.2 Managerial Levels INTRO TO MANAGEMENT & ORG’S. What is Management? - refers to the process of coordinating and integrating work activities so that they’re completed efficiently and effectively with and through other people. - the primary activity engaged in by managers - coordinating others’ work activities is what distinguishes a manager’s job from a non- managerial one. INTRO TO MANAGEMENT & ORG’S. INTRO TO MANAGEMENT & ORG’S. Exhibit 1.3 Efficiency & Effectiveness in Management INTRO TO MANAGEMENT & ORG’S. What Do Managers DO? A) Functional Approach 🡪 Planning - defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities 🡪 Organizing - arranging work to accomplish organizational goals 🡪 Leading - working with and through people to accomplish goals 🡪 Controlling - monitoring, comparing, and correcting the work INTRO TO MANAGEMENT & ORG’S. Exhibit 1.4 Management Functions vision - is the desired future state mission - the reason why you exist INTRO TO MANAGEMENT & ORG’S. What Do Managers DO? (cont’d) INTRO TO MANAGEMENT & ORG’S. What Do Managers DO? (cont’d) C) Skills Approach 🡪 Technical skills - Knowledge & proficiency in a specific field 🡪 Human skills - The ability to work well with other people 🡪 Conceptual skills - The ability to think and conceptualize about abstract and complex situations concerning the organization INTRO TO MANAGEMENT & ORG’S. What is an Organization? 🡪 An Organization is a deliberate arrangement of people to accomplish some specific purpose. 🡪 Common Characteristics of Organizations * Have a distinct purpose (goal) * Are composed of people * Have a deliberate structure INTRO TO MANAGEMENT & ORG’S. Exhibit 1.8 The Changing Organization INTRO TO MANAGEMENT & ORG’S. Sizes & Types of Organizations: 🡪 Managers and employees work in a variety of sizes of organizations 🡪 Large organizations represent only 3% of the organizations in Canada 🡪 Managers and employees work in a variety of organizations, and the type of organization has an impact on what managers can do - Publicly held organizations - Privately held organizations - Public sector organizations - Crown Corporations - Subsidiaries of foreign organizations INTRO TO MANAGEMENT & ORG’S. Exhibit 1.9 Challenges Impacting the Manager’s Job INTRO TO MANAGEMENT & ORG’S. Challenges to Managing: 1. Ethics 🡪 increased emphasis on ethics education in university and college curriculums 🡪 increased creation and use of codes of ethics by businesses 2. Workforce Diversity 🡪 increasing heterogeneity in the workforce 🡪 more gender, minority, ethnic, and other forms of diversity in employees INTRO TO MANAGEMENT & ORG’S. Challenges to Managing: (cont’d) 3. Globalization 🡪 management in international organizations 🡪 political and cultural challenges of operating in a global market 4. E-business (electronic business) 🡪 The work performed by an organization using electronic linkages to its key constituencies 🡪 E-commerce is the sales and marketing component of an e-business INTRO TO MANAGEMENT & ORG’S. 🡪 Categories of E-businesses * E-business–enhanced organization * E-business–enabled organization * Total e-business organization INTRO TO MANAGEMENT & ORG’S. Exhibit 1.10 Categories of E- Business Involvement INTRO TO MANAGEMENT & ORG’S. Challenges to Managing: (cont’d) 5. Customers 🡪 customers have more opportunities than ever before 🡪 delivering consistent high-quality service is essential for success and survival in today’s competitive business environment 🡪 managers need to create customer- responsive organizations (where employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the QUALITY DIMENSIONS OF SERVICE INTRO TO MANAGEMENT & ORG’S. Challenges to Managing: (cont’d) 6. Innovation - INVENTION 🡪 doing things differently, exploring new territory, and taking risks 🡪 managers need to encourage all employees to be innovative 🡪 innovation is often viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs 🡪 the process of translating an idea or invention into a good or service that creates value or for which customers will pay INTRO TO MANAGEMENT & ORG’S. Challenges to Managing: (cont’d) 6. Knowledge Management 🡪 the cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance 🡪 Learning Organization An organization that has developed the capacity to continuously learn, adapt, and change INTRO TO MANAGEMENT & ORG’S. Exhibit 1.11 Learning Vs. Traditional Organization INTRO TO MANAGEMENT & ORG’S. Why study Management? 1. The universality of management 🡪 good management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they’re located (see Exhibit 1.12) 2. The reality of work 🡪 employees either manage or are managed 3. Entrepreneurship 🡪 The organized effort to pursue opportunities to create value and grow through innovation and uniqueness INTRO TO MANAGEMENT & ORG’S. Entrepreneurship Defined: 🡪 the process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness Entrepreneurship Process: a. Pursuit of opportunities b. Innovation in products, services, or business methods c. Desire for continual growth of the organization INTRO TO MANAGEMENT & ORG’S. Exhibit 1.12 Universal Need for Management INTRO TO MANAGEMENT & ORG’S. Important Terms: 🡪 Engineering is the application of mathematics and sciences in the production of systems, processes, machines and structures for the benefit of society. 🡪 Management may be defined as the creative problem solving-process of planning, organizing, leading, and controlling an organization's resources to achieve its mission and vision. 🡪 Engineering Management refers to the activity combining technical knowledge with the ability to organize and  IE 001 Engineering Management  Social Responsibility SOCIAL RESPONSIBILITY INTENDED LEARNING OUTCOMES: 1. Discuss what it means to be socially responsible and what factors influence that decision. 2. Explain “green” management and how organizations can go green. 3. Discuss what ethics is and its views. 4. Discuss the factors that lead to ethical and unethical behaviors. 5. Describe management’s role in encouraging ethical behavior. 6. Discuss current social responsibility and ethical issues. SOCIAL RESPONSIBILITY What is Social Responsibility? - as a business’s obligation, beyond that required by law and economics, to pursue long-term goals that are good for society. SOCIAL RESPONSIBILITY What is Social Responsibility? A) Classical View - Management’s role is to maximize profits for the benefit of the stockholders - Doing “social good” unjustifiably increases costs B) Socioeconomic View - Management’s social responsibility goes beyond making profits but also protect and improve society’s welfare - Corporations are not only responsible to SOCIAL RESPONSIBILITY Approaches to Social Responsibility: SOCIAL RESPONSIBILITY Arguments FOR & AGAINTS Social Responsibility SOCIAL RESPONSIBILITY What is Green Management? - when managers consider the impact of their organization on the natural environment. How do Organizations Go “Green” ? - Some companies do no more than what is required by law – that is, they fulfill their social obligation. - Others have radically changed their products and even their production processes. SOCIAL RESPONSIBILITY “Green” Approaches – Shades of Green SOCIAL RESPONSIBILITY Evaluating Green Management Actions: 1. Global Reporting Initiative 2. ISO 14000 (Environmental Management) Standards 3. Global 100 Most Sustainable Corporations in the World MANAGERIAL ETHICS What is Values-based Management? - an approach to managing in which managers establish, promote, and practice an organization’s shared values. What are Shared Values? - explicit or implicit fundamental beliefs, concepts, and principles that underlie the culture of an organization, and which guide decisions and behavior of its employees, management, and members.1 Source: MANAGERIAL ETHICS Purposes of Shared Values: MANAGERIAL ETHICS Exhibit 1 – Stated Values of Organizations2 MANAGERIAL ETHICS Questions??? 1. Is it ethical for a sales representative to bribe a purchasing agent as an inducement to buy? 2. Would it make a difference if the bribe came out of the sales rep’s commission? 3. Is it ethical for someone to use a company car for private use? 4. How about using company e-mail for personal correspondence or using the company phone to make personal phone calls? 5. Is it ethical to accept gifts from your company’s suppliers during holidays like MANAGERIAL ETHICS What is Ethics? - refers to the rules, principles, values and beliefs that define right and wrong conduct and behavior. Four (4) Views of Ethics: 1. Utilitarian view 2. Rights view 3. Theory of justice view 4. Integrative social contracts theory MANAGERIAL ETHICS 🡪 Utilitarian View – Greatest good is provided for the greatest number – Encourages efficiency and productivity and is consistent with the goal of profit maximization 🡪 Rights View – Respecting and protecting individual liberties and privileges – Seeks to protect individual rights of conscience, free speech, life and safety, and due process MANAGERIAL ETHICS 🡪 The Theory of Justice – Organizational rules are enforced fairly and impartially and follow all legal rules and regulations – Protects the interests of underrepresented stakeholders and the rights of employees 🡪 Integrative Social Contracts Theory – Ethical decisions should be based on existing ethical norms in industries and communities – Based on integration of the general MANAGERIAL ETHICS 🡪 The Theory of Justice – Organizational rules are enforced fairly and impartially and follow all legal rules and regulations – Protects the interests of underrepresented stakeholders and the rights of employees 🡪 Integrative Social Contracts Theory – Ethical decisions should be based on existing ethical norms in industries and communities – Based on integration of the general MANAGERIAL ETHICS Factors That Determine Ethical & Unethical Behavior: MANAGERIAL ETHICS Factors that Affect Employee Ethics: 1. Stages of moral development 2. Individual characteristics 3. Structural variables 4. Organizational culture 5. Issue Intensity MANAGERIAL ETHICS I) Stages of moral development - Research divides moral development into 3 levels, each having 2 stages: a. preconventional level - a person’s choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors. b. conventional level - ethical decisions rely on maintaining expected standards and MANAGERIAL ETHICS c. principled level - individuals define moral values apart from the authority of the groups to which they belong or society in general. MANAGERIAL ETHICS Stages of Moral Development: Based on L. Kohlberg, “Moral Stages and Moralization: The Cognitive- Development Approach,” in T. Lickona (ed.), Moral Development and Behavior: Theory, Research, and Social Issues (New York: Holt, Rinehart & Winston, 1976), pp. 34–35. MANAGERIAL ETHICS II) Individual characteristics a. Values – are basic convictions about what is right or wrong on a broad range of issues. b. Personality – two personality variables have been found to influence an individual’s actions according to his/her beliefs about what is right or wrong. 🡪 Ego strength measures the strength of a MANAGERIAL ETHICS III) Structural variables - Organizational characteristics and mechanisms that guide and influence individual ethics: a) Performance appraisal systems b) Reward allocation systems c) Behaviors (ethical) of managers MANAGERIAL ETHICS IV) Organizational culture - Cultures high in risk tolerance, control, and conflict tolerance are most likely to encourage high ethical standards - Weak cultures have less ability to encourage high ethical standards V) Issue intensity - How important is the ethical issue to an individual MANAGERIAL ETHICS Issue Intensity MANAGERIAL ETHICS How Managers Can Improve Ethical Behavior in an Organization: 1. Hire individuals with high ethical standards. 2. Establish codes of ethics and decision rules. 3. Lead by example. 4. Delineate job goals and performance appraisal mechanisms. 5. Provide ethics training. 6. Conduct independent social audits. 7. Provide support for individuals facing ethical dilemmas. MANAGERIAL ETHICS What is a Code of Ethics? - A formal statement of an organization’s primary values and the ethical rules it expects its employees to follow. ∙ Be a dependable organizational citizen ∙ Don’t do anything unlawful or improper that will harm the organization ∙ Be good to customers MANAGERIAL ETHICS Effective Use of Code of Ethics? ∙ Develop a code of ethics to guide decision making ∙ Communicate the code regularly ∙ Have all levels of management show commitment to the code ∙ Publicly reprimand and consistently discipline those who break the code MANAGERIAL ETHICS Ethical Leadership: 🡪 Managers must be good role models by: ∙ Being ethical and honest at all times ∙ Telling the truth ∙ Admitting failure and not trying to cover it up ∙ Communicating shared ethical values to employees through symbols, stories, and slogans ∙ Rewarding employees who behave ethically and punishing those who do not ∙ Protecting employees (whistleblowers) who bring to light unethical behaviors or raise ethical issues MANAGERIAL ETHICS The Value of Ethics Training: ∙ Training can make a difference in ethical behaviors ∙ Training increases employee awareness of ethical issues in business decisions ∙ Training clarifies and reinforces the standards of conduct ∙ Employees are more confident of support when taking unpopular but ethically correct stances  IE 001 Engineering Management Decision-Making DECISION-MAKING INTENDED LEARNING OUTCOMES: 1. Describe the eight steps in the decision- making process. 2. Explain the four ways managers make decisions. 3. Classify decisions and decision-making conditions. 4. Describe different decision-making styles and discuss how biases affect decision- making. 5. Identify effective decision-making techniques. DECISION-MAKING Decision: - A choice among two (2) or more alternatives. Problem: - An obstacle that makes it difficult to achieve a desired goal or purpose. Decision-making: - simply described as choosing among alternatives. DECISION-MAKING Decision: - A choice among two (2) or more alternatives. Problem: - An obstacle that makes it difficult to achieve a desired goal or purpose. Decision-making: - is typically described as choosing among alternatives, the thought process of selecting a logical choice from the available options after considering the pros and cons DECISION-MAKING DECISION-MAKING Steps in the Decision-Making Process: 1. Identifying a problem - every decision starts with a problem (the discrepancy between an existing condition and a desired condition. Problems make it difficult to achieve a desired goal or objective. 2. Identifying decision criteria - are the standards or factors that define what’s important or relevant to resolving a problem, such as cost, delivery, quality, etc. DECISION-MAKING 3. Allocating weights to the criteria - criteria are not equally important, so, assigning weights to each criteria will define their priority or importance in the decision- making process. 4. Developing alternatives - developing a list of viable alternatives that can resolve the problem. 5. Analyzing alternatives - involves evaluating the individual alternatives using the decision criteria and the weights assigned to each criteria, their DECISION-MAKING 6. Selecting an alternative - the alternative that gives the highest total is the best alternative. 7. Implementing the alternative - putting the decision into action, it is recommended to involve in the process the people who will play part in the implementation of the alternative. 8. Evaluating decision effectiveness - evaluation of the result or outcome of the decision to see whether the problem was resolved. DECISION-MAKING Decisions Managers May Make: 1. Planning What are the organization’s long-term objectives? What strategies will best achieve those objectives? What should the organization’s short-term objectives be? How difficult should individual goals be? 2. Organizing How many employees should I have report directly to me? How much centralization should there be in the organization? How should jobs be designed? DECISION-MAKING 3. Leading How do I handle employees who appear to be unmotivated? What is the most effective leadership style in a given situation? How will a specific change affect worker productivity? When is the right time to stimulate conflict? 4. Controlling What activities in the organization need to be controlled? How should those activities be controlled? When is a performance deviation significant? What type of management information system should the organization have? DECISION-MAKING Four (4) Ways Managers Make Decisions: 1. Rational decision-making - making logical and consistent choices to maximize value. - making decisions rationally would consistently lead to selecting the alternative that maximizes the likelihood of achieving the goal, decisions that are to the best interest of the organization. DECISION-MAKING 2. Decision-making: Bounded rationality - decision making that’s rational but under the concept of “bounded-rationality”, that is rational decision-making but limited (bounded) by a manager’s ability to process information. - due to the manager’s inability to process all information on all alternatives, managers “satisfice”, rather than maximize. - satisfice is accepting solutions that are “good enough”. DECISION-MAKING 3. Intuitive decision-making: - making decisions on the basis of experience, feelings and accumulated judgment. 4. Making decisions: The role of evidence- based management - decision making process that uses relevant and reliable evidence - evidence-based management (EBMgt) is the “systematic use of the best available evidence to improve management practice.” DECISION-MAKING What is Intuition? DECISION-MAKING Types of Decisions: 1. Structured problems and programmed decisions - Structured problems are straight-forward, familiar and information about them are easily defined and complete. Example: when a server accidentally spills a drink on a customer’s coat/dress - Programmed decisions are repetitive decisions that can be handled by routine approach. Example: the manager offers to have the coat/dress DECISION-MAKING Three types of programmed decisions are:  Procedure is a series of sequential steps a manager uses to respond to a structured problem.  Rule is an explicit statement that tells a manager what can or cannot be done, simple to follow and ensures consistency.  Policy is a guideline for making decisions that establishes general parameters for the decision- maker rather than specifically stating what should DECISION-MAKING 2. Unstructured problems and nonprogrammed decisions - Unstructured problems are new or unusual problems, and for which information is ambiguous or incomplete. Example: To build or not to build a manufacturing facility outside of the country - Nonprogrammed decisions are unique and non-recurring decisions for unstructured problems, which involved custom-made solutions. DECISION-MAKING Programmed vs. Nonprogrammed Decisions: DECISION-MAKING Decision-Making Conditions: 1. Certainty - is a situation where a manager can make accurate decisions because the outcome of every alternative is known. 2. Risk - conditions in which the decision- maker is able to estimate the likelihood of certain outcomes. Under risk, managers have historical data from past personal experiences or secondary information that lets them assign probabilities to different alternatives. DECISION-MAKING Example of decision-making under condition of risk: - A ski manager would like to expand by adding lifts. His decision will be influenced by past data on revenue which is dependent on snowfall. DECISION-MAKING 3. Uncertainty – conditions where outcomes are not certain and reasonable probability estimates could not be made. Under these conditions, the choice of alternative is influenced by the limited amount of available information and by the psychological orientation of the decision maker.  An optimistic manager will follow a maximax choice (maximizing the maximum possible payoff)  A pessimist will follow a maximin choice (maximizing the minimum possible payoff)  A manager who desires to minimize his DECISION-MAKING Example of decision-making under condition of uncertainty: - A marketing manager from VISA is planning to promote their product Westcoast region with payoff matrix below:  VISA has 4 possible strategies (S)  Mastercard (biggest competitor) is also doing same with 3 possible actions (C). DECISION-MAKING - For the manager who desires to minimize his maximum “regret” (the amount of money that could have been made had a different strategy been used), the “regret matrix” is shown below: 1. Get the highest pay-off for each Mastercard action (CA1 = 24, CA2 = 21, CA3 = 28) 2. To get regret, subtract payoff for each (S) from the highest CA payoff (S1CA1 regret = 24 – 13 = 11) DECISION-MAKING Decision-Making Styles: 1. Linear thinking - is characterized by a person’s preference for using external data and facts and processing this information through rational, logical thinking to guide decisions and actions. 2. Nonlinear thinking - is characterized by a preference for internal sources of information (feelings and intuition) and processing this information with internal insights, feelings, and hunches to guide decisions and actions. DECISION-MAKING Decision-Making Biases & Errors: DECISION-MAKING 1. Overconfidence bias - when decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance. 2. Immediate gratification bias - describes decision makers who tend to want immediate rewards and to avoid immediate costs. 3. Anchoring effect bias - describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information. 4. Selective perception bias - decision makers DECISION-MAKING 5. Confirmation bias - decision makers who seek out information that reaffirms their past choices and discount information that contradicts past judgments exhibit. 6. Framing bias - is when decision makers select and highlight certain aspects of a situation while excluding others. 7. Availability bias – is when decisions makers tend to remember events that are the most recent and vivid in their memory, thus, distorting their ability to recall events in an objective manner and resulting in distorted judgments and probability estimates. DECISION-MAKING 8. Representation bias – is when decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events. 9. Randomness bias - describes the actions of decision makers who try to create meaning out of random events. 10.Sunk costs error - occurs when decision makers forget that current choices can’t correct the past, they incorrectly fixate on past expenditures of time, money, or effort in assessing choices rather than on future consequences. DECISION-MAKING 11.Self-serving bias – when decision makers who are quick to take credit for their successes and blame failure on outside factors. 12.Hindsight bias - is the tendency for decision makers to falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known. DECISION-MAKING Overview of Managerial Decision Making:  IE 001 Engineering Management Planning PLANNING INTENDED LEARNING OUTCOMES: 1. Define what is planning, its nature and purposes. 2. Classify the types of goals organizations might have and the plans they used. 3. Identify and define the steps, levels and types of plans 4. Describe the main components of a typical strategic planning system. PLANNING What is planning? - involves defining the organization’s goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities. (Robbins, Stephen) - it is concerned with both ends (what) and means (how). - the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.” (Nickels, etc.) PLANNING What is planning? - the selection and sequential ordering of tasks required to achieve an organizational goal.” (Aldag and Stearns). - deciding what will be done, who will do it , when, where and how it will be done, and the standards to which it will be done. (Cole and Hamilton) PLANNING Who Do Managers Plan? 1. Planning gives direction and purpose to an organization; it is a mechanism for deciding the goals of the organization. 2. The process by which management allocates scarce resources, including capital and people, to different activities. 3. Planning drives operating budgets-strategic, operations, and unit plans determine financial budgets for the coming year. 4. Planning assigns roles and responsibilities to individuals and units within the organization. 5. Planning enables managers to better control the organization. PLANNING What is a Plan? - A plan, which is the output of planning, provides a methodical way of achieving desired result. - Plan is document that outlines how goals are going to be met. It usually includes resource allocations, schedules, and other necessary actions to accomplish the goals. - In the implementation of activities, the plan serves as a useful guide. PLANNING Steps in Planning: 1. Choose goals 2. Identify actions 3. Allocate responsibilities 4. Review performance 5. Make adjustments PLANNING Levels of Planning: PLANNING Types of Plans: PLANNING Types of Plans: A) According to breadth ∙ Strategic plans - are plans that apply to the entire organization and establish the organization’s overall goals. ∙ Operational plans – are plans that encompass a particular operational area of the organization. They specify goals, actions, and responsibility for individual functions. PLANNING B) According to time frame ∙ Long term plans – are those plans with a time frame beyond three years. ∙ Short term plans – are plans cover one year or less. C) According to Specificity ∙ Specific plans - are clearly defined and leave no room for interpretation. Specific plans state their objectives in a way that eliminates ambiguity and problems with misunderstanding. ∙ Directional plans - are flexible plans that set out general guidelines. PLANNING D) According to Frequency of Use ∙ Single used plans - are one-time plans that are specifically designed to meet the needs of a unique situation, or a single event that do not recur. ∙ Standing plans - are ongoing plans that provide guidance for activities. They are used to handle events that recur frequently. PLANNING Other Types of Plans: ∙ Tactical plans – are the action managers adopt over the short to medium term to deal with a specific opportunity or threat that has emerged. ∙ Unit plans – are plans for departments within functions, work teams, or individuals. ∙ Contingency plans – are plans formulated to address specific possible future events that might have a significant impact on the organization. PLANNING Crisis Management Plans: - are plans formulated specifically to deal with possible future crises. Scenario Planning: - is planning that is based on “what if” scenarios about the future. PLANNING Steps in Scenario Planning: PLANNING Question: PLANNING Scenario Planning Traps: 1. Treating scenarios as forecasts 2. Failing to make scenarios global enough in scope 3. Failing to focus scenarios in areas of potential impact 4. Treating scenarios as informational only 5. Not using an experience facilitator PLANNING The Strategic Planning Process: PLANNING Setting the Context: Mission, Vision, Values, and Goals ∙ Mission – the purpose of an organization. ∙ Vision – an organization’s desired future state. ∙ Values - the philosophical properties to which managers are committed. ∙ Goals – also objectives, are desired outcomes or targets. They are desired future state that an organization attempts to utilize. PLANNING Characteristics of Well-Written Goals: ∙ precise and measurable ∙ address important issues ∙ challenging but realistic ∙ specify a time period in which they should be achieved ∙ written in terms of outcomes rather than actions ∙ communicated to all necessary organizational members PLANNING Steps in Goal Setting: 1. Review the organization’s mission, or purpose. 2. Evaluate available resources. 3. Determine the goals individually or with input from others. 4. Write down the goals and communicate them to all who need to know. 5. Review results and whether goals are being met. PLANNING Why Care About Planning? 1. Planning is one of the central activities of managers, who devote a lot of time and energy to formulating and then implementing plans; 2. It is crucial that managers plan well because the evidence suggests that whereas good planning can improve the performance of an organization, bad planning may be as damaging as no planning at all; PLANNING Without Planning: 1. The organization can lack purpose, and there may be no agreement about its strategy; 2. Without planning, different parts of the organization may pull in different directions, there may be a lack of synchronicity between actions, and different units may pursue inconsistent strategies; 3. Resources may be allocated in a haphazard fashion, with no link between strategy and budgets. PLANNING 4. There may be a lack of control in the enterprise: By allowing managers to compare performance against goals, planning becomes a crucial link in the process of controlling the organization PLANNING Limitations of Planning: 1. Planning does not guarantee perfect strategy formulation. Good ideas can emerge in the absence of planning: Much of what organizations do is not planned but rather is a response to unanticipated circumstances; but coordinated action is still needed to exploit good ideas and respond to unforeseen events. PLANNING “In addition, much of a manager's work involves making decisions. Planning is nothing more than a formal process for making decisions.”  IE 001 Engineering Management Organizing ORGANIZING INTENDED LEARNING OUTCOMES: 1. Define six (6) key elements in organizational design ∙ Work specialization ∙ Departmentalization ∙ Chain of command ∙ Span of control ∙ Centralization and decentralization ∙ Formalization 2. Contrast mechanistic and organic organizations ORGANIZING INTENDED LEARNING OUTCOMES: 3. Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design ∙ Strategy and structure ∙ Size and structure ∙ Technology and structure ∙ Environmental uncertainty and structure 4. Describe traditional organizational designs ∙ Simple structure ∙ Functional structure ∙ Divisional structure ORGANIZING What is Organizing? - the management function of arranging and structuring work to accomplish organizational goals. - it is the process of creating an organization’s structure. ORGANIZING Purposes of Organizing: ∙ Divides work to be done into specific jobs and departments ∙ Coordinates diverse organizational tasks ∙ Clusters jobs into units ∙ Establishes relationships among individuals, groups, and departments ∙ Establishes formal lines of authority ∙ Allocates and deploys organizational resources ORGANIZING What is an Organizational Structure? - the formal arrangement of jobs within an organization. What is an Organizational Chart? - is the visual representation of an organization’s structure. ORGANIZING What is Organizational Design - is the process of developing or changing an organization’s structure. - it involves decisions about six (6) key elements: ∙ Work specialization ∙ Departmentalization ∙ Chain of command ∙ Span of control ∙ Centralization and decentralization ∙ Formalization ORGANIZATIONAL STRUCTURE I. Work Specialization: - the degree to which tasks in the organization are divided into separate jobs with each step completed by a different person. - overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover. ORGANIZATIONAL STRUCTURE II. Departmentalization - is the basis on which jobs are grouped in order to accomplish organizational goals. - five (5) major ways to departmentalize: ∙ Functional – grouping jobs by functions performed ∙ Product – grouping jobs by product line ∙ Geographical - grouping jobs on the basis of territory or geography ∙ Process - grouping jobs on the basis of product or customer flow ∙ Customer - grouping jobs by type of customer and needs ORGANIZATIONAL STRUCTURE a. Functional Departmentalization ORGANIZATIONAL STRUCTURE b. Geographical Departmentalization ORGANIZATIONAL STRUCTURE c. Product Departmentalization ORGANIZATIONAL STRUCTURE d. Process Departmentalization ORGANIZATIONAL STRUCTURE e. Customer Departmentalization ORGANIZATIONAL STRUCTURE III. Chain of Command - is the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom. horizontal / lateral downward upward diagonal ORGANIZATIONAL STRUCTURE - three (3) related concepts to chain of command: ∙ Authority - the rights inherent in a managerial position to tell people what to do and to expect them to do it. ∙ Responsibility - the obligation or expectation to perform. Responsibility brings with it accountability (the need to report and justify work to manager’s superiors). ∙ Unity of Command - the concept that a person should have one boss and should report only to that person. ORGANIZATIONAL STRUCTURE ∙ Delegation - is the assignment of authority to another person to carry out specific duties. ∙ Acceptance theory of authority – a perspective says that authority comes from the willingness of subordinates to accept it and that they will accept it only if the following conditions are satisfied: - they understand the order - they feel the order is consistent with the organization’s purpose - the order does not conflict with their personal beliefs - they are able to perform the task as ORGANIZATIONAL STRUCTURE Line & Staff Authority: 🡪 Line managers - are responsible for the essential activities of the organization, including production and sales. Line managers have the authority to issue orders to those in the chain of command. ∙ the president, the production manager, and the sales manager are examples of line managers 🡪 Staff managers - have advisory authority, and cannot issue orders to those in the chain of command (except those in their own department). ORGANIZATIONAL STRUCTURE Chain of Command and Line Authority: ORGANIZATIONAL STRUCTURE Line vs. Staff Authority: ORGANIZATIONAL STRUCTURE IV. Span of Control - is the number of employees who can be effectively & efficiently supervised by a manager - width of span is affected by: ∙ Skills and abilities of the manager and the employees ∙ Characteristics of the work being done ∙ Similarity of tasks ∙ Complexity of tasks ∙ Physical proximity of subordinates ∙ Standardization of tasks ORGANIZATIONAL STRUCTURE ∙ Sophistication of the organization’s information system ∙ Strength of the organization’s culture ∙ Preferred style of the manager ORGANIZATIONAL STRUCTURE Contrasting Spans of Control ORGANIZATIONAL STRUCTURE V. Centralization & Decentralization 🡪 Centralization - is the degree to which decision making is concentrated at a single point in the organization. Organizations in which top managers make all the decisions and lower-level employees simply carry out those orders 🡪 Decentralization - is the degree to which lower- level employees provide input or actually make decisions. Employee Empowerment – is increasing the decision-making discretion of ORGANIZATIONAL STRUCTURE Factors that Influence the Amount of Centralization: 🡪 More Centralization ∙ Environment is stable ∙ Lower-level managers are not as capable or experienced at making decisions as upper-level managers ∙ Lower-level managers do not want to have a say in decisions ∙ Decisions are significant ∙ Organization is facing a crisis or the risk of company failure ∙ Company is large ∙ Effective implementation of company strategies depends on managers retaining say over what happens ORGANIZATIONAL STRUCTURE Factors that Influence the Amount of Decentralization: 🡪 More Decentralization ∙ Environment is complex, uncertain ∙ Lower-level managers are capable and experienced at making decisions ∙ Lower-level managers want a voice in decisions ∙ Decisions are relatively minor ∙ Corporate culture is open to allowing managers to have a say in what happens ∙ Company is geographically dispersed ∙ Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions ORGANIZATIONAL STRUCTURE VI. Formalization 🡪 Formalization – is the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures 🡪 Highly formalized jobs offer little discretion over what is to be done 🡪 Low formalization means fewer constraints on how employees do their work ORGANIZATIONAL DESIGN What is a Mechanistic Organization? - or bureaucracy, was the natural result of combining the six elements of structure. - it is a rigid and tightly controlled structure. What is an Organic Organization? - is a highly adaptive form that is as loose and flexible. ORGANIZATIONAL DESIGN Mechanistic vs. Organic Organizations CONTINGENCY FACTORS Contingency Factors Affecting Structural Choice: 1. Strategy & Structure - Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and support change Strategy Frameworks: ∙ Innovation - pursuing competitive advantage through meaningful and unique innovations favors an organic structuring ∙ Cost minimization - focusing on tightly controlling costs requires a mechanistic CONTINGENCY FACTORS Contingency Factors Affecting Structural Choice (cont’d): ∙ Imitation – minimizing risks and maximizing profitability by copying market leaders requires both organic and mechanistic elements in the organization’s structure 2. Size & Structure - As an organization grows larger, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, and rules and regulations CONTINGENCY FACTORS Contingency Factors Affecting Structural Choice (cont’d): 3. Technology & Structure - Organizations adapt their structures to their technology - Routine technology = mechanistic org. - Non–routine technology = organic org. - Woodward’s classification of firms based on the complexity of the technology employed: ∙ Unit production of single units or small batches ∙ Mass production of large batches of output CONTINGENCY FACTORS CONTINGENCY FACTORS Contingency Factors Affecting Structural Choice (cont’d): 4. Environmental Uncertainty & Structure - Mechanistic organizational structures tend to be most effective in stable and simple environments. The flexibility of organic organizational structures is better suited for dynamic and complex environments CONTINGENCY FACTORS Traditional Organizational Designs: 1. Simple Structure - Low departmentalization, wide spans of control, centralized authority, little formalization 2. Functional Structure - Departmentalization by function - Operations, finance, human resources, and product research and development 3. Divisional Structure - Composed of separate business units or divisions with limited autonomy under the coordination and control of the parent corporation CONTINGENCY FACTORS Strengths & Weaknesses of Traditional Organizational Designs: CONTINGENCY FACTORS Contemporary Organizational Designs: 1. Team Structures -The entire organization is made up of work groups or self-managed teams of empowered employees 2. Matrix Structures - Specialists for different functional departments are assigned to work on projects led by project managers - Matrix participants have two managers 3. Project Structures - Employees work continuously on projects, moving on to another project as each project is completed CONTINGENCY FACTORS Contemporary Organizational Designs (cont’d): 4. Boundaryless Organization - A flexible and an unstructured organizational design that is intended to break down external barriers between the organization and its customers and suppliers - Removes internal (horizontal) boundaries: ∙ Eliminates the chain of command ∙ Has limitless spans of control ∙ Uses empowered teams rather than departments - Eliminates external boundaries: ∙ Uses virtual, network, and modular organizational structures to get closer to CONTINGENCY FACTORS Removing Boundaries: ∙ Virtual Organization - An organization that consists of a small core of full-time employees and that temporarily hires specialists to work on opportunities that arise ∙ Network Organization - A small core organization that outsources its major business functions (e.g., manufacturing) in order to concentrate on what it does best ∙ Modular Organization - A manufacturing organization that uses outside suppliers to provide product components for its final assembly operations CONTINGENCY FACTORS Outsourcing Issues: ∙ Choosing the wrong activities to outsource ∙ Choosing the wrong vendor ∙ Writing a poor contract ∙ Failing to consider personnel issues ∙ Losing control over the activity ∙ Ignoring the hidden costs ∙ Failing to develop an exit strategy (for either moving to another vendor, or deciding to bring the activity back in-house) CONTINGENCY FACTORS Contemporary Organizational Designs (cont’d): 5. Learning Organization - An organization that has developed the capacity to continuously learn, adapt, and change through the practice of knowledge management by employees Characteristics of a learning organization: 1. An open team-based organization design that empowers employees 2. Extensive and open information sharing 3. Leadership that provides a shared vision of the organization’s future; support; and encouragement CONTINGENCY FACTORS Characteristics of a Learning Organization: CONTINGENCY FACTORS Strengths & Weaknesses of Contemporary Organizational Designs:  IE 001 Engineering Management  Human Resources Management HUMAN RESOURCES MANAGEMENT INTENDED LEARNING OUTCOMES: 1. Explain the importance of the human resource how an organization’s human resources can be a significant source of competitive advantage activities necessary for staffing the organization and sustaining high employee performance 2. Explain the importance of the human resource management process and the environmental factors that most directly affect it. 3. What is human resource planning HUMAN RESOURCES MANAGEMENT 4. Staffing the organization Discuss the major sources of potential job candidates Describe the different selection devices and discuss which ones work best for different jobs Explain what a realistic job preview is and why it’s important 5. Orientation and Skill Development Describe the different types of training and how that training can be provided HUMAN RESOURCES MANAGEMENT 6. Managing and Rewarding Performance Describe the different performance appraisal methods 7. Compensation and Benefits Discuss the factors that influence employee compensation and benefits Describe skill-based pay systems 8. Career Development Describe career development for today’s employees. HUMAN RESOURCES MANAGEMENT 9. Current Issues in Human Resources Management Explain how managers can manage downsizing Discuss how managers can manage workforce diversity Explain what sexual harassment is and what managers need to know about it Describe how organizations are dealing with work-life balances HUMAN RESOURCES MANAGEMENT The Importance of HRM 1. HRM is a necessary part of the organizing function of management - Selecting, training, & evaluating the workforce 2. It is an important strategic tool - HRM helps establish an organization’s sustainable competitive advantage. 3. It adds value to the firm - High performance work practices lead to both high individual and high organizational performance. HUMAN RESOURCES MANAGEMENT Examples of High-Performance Work Practices HUMAN RESOURCES MANAGEMENT HRM for Non-HR Managers: 🡪 Small vs. large organizations Large organizations have HR function Smaller organizations may rely on managers to handle HR issues. 🡪 All managers need to be aware of federal and provincial legislation and company policies Minimum wage law Benefits mandatory provided by law to workers such as SSS, Pag-ibig, Philhealth, vacation leaves, sick leaves, etc. HUMAN RESOURCES MANAGEMENT The HRM Process: HUMAN RESOURCES MANAGEMENT Functions of the HRM Process: 1. Identifying and selecting competent employees 2. Providing employees with up-to-date knowledge and skills to do their jobs 3. Ensuring that the organization retains competent and high-performing employees HUMAN RESOURCES MANAGEMENT Environmental Factors Affecting HRM: 1. Labor Union - An organization that represents workers and seeks to protect their interests through collective bargaining. Collective Bargaining Agreement: - A contractual agreement between an organization and a union, covering wage, hours, and working conditions of workers. HUMAN RESOURCES MANAGEMENT 2. Legislation Affecting Workplace Conditions Canada Labor Code/Philippine Labor Code Occupational Health and Safety Act Workplace Hazardous Materials Information System (WHMIS) Employment standards legislation 3. Antidiscrimination Legislation The Charter of Rights and Freedoms and the Canadian Human Rights Act The Employment Equity Act Different laws prohibiting discrimination against gender, age, disability, race, etc. HUMAN RESOURCES MANAGEMENT 4. Economy’s Effect on the HRM Process lifetime employment is long gone and corporate pension plans are crumbling the jobless rate will continue to increase in most European countries reduced work hours, which affected employees’ pay and their skill upgrades temporary or contract positions, rather than full -time jobs with benefits HUMAN RESOURCES MANAGEMENT 5. Demographic trends 🡪 Four generations working side-by-side in the workplace: the oldest, most experienced workers (those born before 1946) make up 6 percent of the workforce the baby boomers (those born between 1946 and 1964) make up 41.5 percent of the workforce Gen Xers (those born 1965 to 1977) make up almost 29 percent of the workforce Gen Yers (those born 1978 to 1994) make up almost 24 percent of the THE HRM PROCESS I. Human Resource (HR) Planning: - the process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks. - helps avoid sudden talent shortages & surpluses. Steps in HR Planning: 1. Assessing current human resources 2. Assessing future needs for human resources and developing a program to meet those future needs THE HRM PROCESS 1. Human Resources Inventory: - A review of the current makeup of the organization’s resources/employees status which usually includes information on employees such as name, education, training, prior employment, languages spoken, special capabilities, and specialized skills. HR Management Information Systems (HRMIS): - A database that tracks employees’ information for policy and strategic needs. THE HRM PROCESS Job Analysis: - an assessment that defines a job and the behaviors necessary to perform the job; knowledge, skills, and abilities - requires conducting interviews, engaging in direct observation, and collecting the self- reports of employees and their managers THE HRM PROCESS Job Description: - a written statement of what the jobholder does, how it is done, and why it is done. Job Specification: - a written statement of the minimum qualifications that a person must possess to perform a given job successfully. THE HRM PROCESS 2. Meeting Future HR Needs - future HR needs are determined by the organization’s mission, goals, and strategies. - demand for employees results from demand for the organization’s products or services. - after assessing both current capabilities and future needs, managers can estimate areas in which the organization will be understaffed or overstaffed. THE HRM PROCESS Meeting Future HR Needs: THE HRM PROCESS II. Staffing the Organization: 🡪 Recruitment - the process of locating, identifying, & attracting capable applicants to an organization E-recruiting - recruitment of employees through the Internet, organizational web sites, online recruiters. 🡪 Decruitment - the process of reducing a surplus of employees in the workforce of an organization (includes firing, layoffs, attrition, transfers, reduced workweeks, THE HRM PROCESS Major Sources of Potential Job Candidates: THE HRM PROCESS Decruitment Options: THE HRM PROCESS III. Selection Process - is the process of screening job applicants to ensure that the most appropriate candidates are hired. Selection: - is an exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance Selection errors: Reject errors for potentially successful applicants Accept errors for ultimately poor THE HRM PROCESS Selection Decision Outcomes: THE HRM PROCESS Validity & Reliability: 🡪 Validity (of Prediction) A proven relationship between the selection device used and some relevant criterion for successful performance in an organization. - High test scores equate to high job performance; low scores to poor performance 🡪 Reliability (of Prediction) The degree of consistency with which a selection device measures the same thing - Individual test scores obtained with a selection device are consistent over multiple testing instances THE HRM PROCESS Types of Selection Devices: Application Forms Written Tests Performance Simulations Interviews Background Investigations Physical Examinations THE HRM PROCESS THE HRM PROCESS Written Tests: 🡪 Types of Tests Intelligence: how smart are you? Aptitude: can you learn to do it? Ability: can you do it? Interest: do you want to do it? THE HRM PROCESS Performance Simulation Tests: - Testing an applicant’s ability to perform actual job behaviors, use required skills, and demonstrate specific knowledge of the job. Work sampling Requiring applicants to actually perform a task or set of tasks that are central to successful job performance Assessment centres Dedicated facilities in which job candidates undergo a series of performance simulation tests to evaluate their managerial potential THE HRM PROCESS Situational Interviews: - Interviews in which candidates are evaluated on how well they handle role play in mock scenarios Background Investigations: - Verification of application data - Reference checks Lack validity because self-selection of references ensures only positive outcomes Physical Examinations: - Useful for physical requirements THE HRM PROCESS Realistic Job Interviews: - The process of relating to an applicant both the positive and the negative aspects of the job. Encourages mismatched applicants to withdraw Aligns successful applicants’ expectations with actual job conditions, reducing turnover THE HRM PROCESS Tips for Managers: Some Suggestions for Interviewing Structure a fixed set of questions for all applicants. Have detailed information about the job for which applicants are interviewing. Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics. Ask behavioural questions that require applicants to give detailed accounts of actual job behaviours. Use a standardized evaluation form. Take notes during the interview. Avoid short interviews that encourage premature decision making. THE HRM PROCESS Questions Not to Ask Job Candidates: About name changes; maiden name For birth certificate, baptismal records, or about age in general About pregnancy, child bearing plans, or child care arrangements Whether applicant is single, married, divorced, engaged, separated, widowed, or living common-law About birthplace, nationality of ancestors, spouse or other relatives Whether born in Canada For photo to be attached to application or sent to interviewer before interview About religious affiliation, church membership, frequency of church attendance Whether the applicant drinks or uses drugs Whether the applicant has ever been convicted Whether the applicant has ever been arrested Whether the applicant has a criminal record About the applicant’s sexual orientation THE HRM PROCESS Quality of Selection Devices as Predictors THE HRM PROCESS IV. Orientation Work-unit orientation - Familiarizes new employee with work- unit goals - Clarifies how his or her job contributes to unit goals - Introduces employee to his or her co- workers Organization orientation - Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules - Includes a tour of the entire facility THE HRM PROCESS IV. Orientation - the introduction of a new employee into his/her job and the organization. Two types of orientation: Work-unit orientation - Familiarizes new employee with work-unit goals - Clarifies how his or her job contributes to unit goals - Introduces employee to his or her co-workers Organization orientation - Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules - Includes a tour of the entire facility THE HRM PROCESS V. Training - An organized activity aimed at imparting information and/or instructions to improve the recipient's performance or to help him or her attain a required level of knowledge or skill. Types of Training: Interpersonal skills Technical skills Business skills Mandatory skills Performance management skills Problem solving/decision making skills Personal skills THE HRM PROCESS Employee Training Methods THE HRM PROCESS Occupations of Employees Who Receive Training THE HRM PROCESS How Employees Train Themselves THE HRM PROCESS VI. Performance Management System: - A process establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions. THE HRM PROCESS Performance Appraisal Methods: Written Essays Critical Incidents Graphic Rating Scales Behaviourally Anchored Rating Scales (BARS) Multi-person Comparisons Management by Objectives (MBO) 360-Degree Feedback THE HRM PROCESS Advantages and Disadvantages of Performance Appraisal Methods THE HRM PROCESS VII. Compensation & Benefits Benefits of a Fair, Effective, and Appropriate Compensation System - helps attract and retain high-performance employees - impacts on the strategic performance of the firm Types of Compensation - Base wage or salary - Wage and salary add-ons - Incentive payments - Skill-based pay THE HRM PROCESS Base wage or salary - is a fixed amount of money paid to an employee by an employer in return for work performed and does not include benefits, bonuses or any other potential compensation. Wage & salary add-ons - includes the employee’s base wage or salary plus overtime pay, night shift differentials, working on weekends/holidays, on call pay, etc. THE HRM PROCESS Incentive payment - is a monetary gift provided to an employee based on performance, which is thought of as one way to entice the employee to continue delivering positive results. It may come in the form of bonus, profit sharing or commission. Skill-based pay - rewards employees for the job skills and competencies they can demonstrate. Under this type of pay system, an employee’s job title doesn’t define his/her pay category, skills do. THE HRM PROCESS Variable pay - a pay system in which an individual’s compensation is contingent on performance. It is something that is a part of an employee’s salary which depends on the employee’s and companies performance. THE HRM PROCESS Factors that Influence Compensation & Benefits: THE HRM PROCESS VIII. Career Development What is a career? - a sequence of positions held by a person during his or her lifetime. Career Development - Provides for information, assessment, & training - Helps attract and retain highly talented people Boundaryless Career - A career in which individuals, not organizations, define career progression, organizational loyalty, important skills, and marketplace value. THE HRM PROCESS Top Ten (10) Job Factors for College Graduates: 1. Enjoying what they do 2. Opportunity to use skills and abilities 3. Opportunity for personal development 4. Feeling what they do matters 5. Benefits 6. Recognition for good performance 7. Friendly co-workers 8. Job location 9. Lots of money 10. Working on teams THE HRM PROCESS CONTEMPORARY ISSUES IN HRM Contemporary Issues in Managing Human Resources: 1. Managing downsizing - is the planned elimination of jobs in an organization which can be due to the need to cut costs, declining market share, overaggressive organizational growth. Provide open and honest communication Reassure survivors CONTEMPORARY ISSUES IN HRM 2. Managing workforce diversity - workforce diversity refers to the variety of differences between people in an organization. It encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education, background, etc. Recruitment for diversity Selection without discrimination Orientation and training that is effective CONTEMPORARY ISSUES IN HRM 3. Sexual Harassment - defined as any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment. - the Equal Employment Opportunity Commission (EEOC) defines sexual harassment as the behaviour marked by sexually aggressive remarks, unwanted touching and sexual advances, requests for sexual favours, or other verbal or physical conduct of a sexual nature, which can occur between members of the opposite sex or of the same CONTEMPORARY ISSUES IN HRM Educate all employees on sexual harassment matters The key is being attuned to what makes fellow employees uncomfortable—and if you don’t know, then you should ask. Workplace Romances: Educate employees about the potential for sexual harassment when coworkers stop dating Discourage workplace romances and require supervisors to report any such relationships to the HR department CONTEMPORARY ISSUES IN HRM 4. Work-Life Balance - Employees have personal lives that they don’t leave behind when they come to work. - Organizations have become more attuned to their employees by offering family- friendly benefits such as: On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours  IE 001 Engineering Management  Communication and Information Technology COMMUNICATION INTENDED LEARNING OUTCOMES: 1. Define the nature & function of communication. 2. Compare & contrast the methods of interpersonal communication. 3. Explain the barriers to effective interpersonal communication and how to overcome them. 4. Explain how communication can flow most effectively in organizations. 5. Explain how communication can flow most effectively in organizations. 6. Discuss contemporary issues in communication. COMMUNICATION What is Communication? - the transfer and understanding of meaning. Interpersonal communication: - Communication between two or more people. Organizational communication - All the patterns, network, and systems of communications within an organization. COMMUNICATION Functions of Communication: 1. Control - Formal & informal communications act to control individuals’ behaviors in organizations. 2. Motivation - Communications clarify for employees what is to be done, how well they have done it, and what can be done to improve performance. 3. Emotional Expression - Social interaction in the form of work group communications provides a way for employees to express themselves. 4. Information - Individuals and work groups need information to make decisions or to do their work. COMMUNICATION The Interpersonal Communication Process: COMMUNICATION Seven (7) Elements of the Communication Process: 1. Communication source or sender 2. Message – the purpose to be conveyed, sender’s intended meaning 3. Encoding – message converted to symbolic form 4. Channel – medium thru which the message travels. 5. Decoding – receiver’s retranslation of the message. 6. Receiver 7. Feedback COMMUNICATION Evaluating Communication Methods: 1. Feedback  How quickly can the receiver respond to the message? 2. Complexity capacity  Can the method effectively process complex messages? 3. Breadth potential  How many different messages can be transmitted using this method? 4. Confidentiality  Can communicators be reasonably sure their messages are received only by those for whom they’re intended? 5. Encoding ease  Can the sender easily and COMMUNICATION 6. Decoding ease  Can the receiver easily and quickly decode messages? 7. Time–space constraint  Do senders & receivers need to communicate at the same time and in the same space? 8. Cost  How much does it cost to use this method? 9. Interpersonal warmth  How well does this method convey interpersonal warmth? 10.Formality  Does this method have the needed amount of formality? COMMUNICATION 11.Scanability  Does this method allow the message to be easily browsed or scanned for relevant information? 12.Time of consumption  Does the sender or receiver exercise the most control over when the message is dealt with? COMMUNICATION Interpersonal Communication Methods: COMMUNICATION Comparison of Interpersonal Communication Methods: COMMUNICATION Non-Verbal Communication: - Communication that is transmitted without words. sounds, images situational behaviors clothing & physical surroundings - The most common type of non-verbal comm: Body language - gestures, facial expressions, and other body movements that convey meaning. Verbal intonation (paralinguistics) - emphasis that a speaker gives to certain words or phrases that conveys COMMUNICATION Interpersonal Communication Barriers: COMMUNICATION Barriers to Effective Interpersonal Communication: 1. Filtering – is the deliberate manipulation of information to make it appear more favorable to the receiver. 2. Emotions - disregarding rational and objective thinking processes and substituting emotional judgments when interpreting messages. 3. Information Overload - being confronted with a quantity of information that exceeds an individual’s capacity to process it. COMMUNICATION 4. Selective Perception - individuals interpret “reality” based on their own needs, motivations, experience, background, and other personal characteristics. 5. Defensiveness - when threatened, reacting in a way that reduces the ability to achieve mutual understanding. 6. Language - the different meanings of and specialized ways (jargon) in which senders use words can cause receivers to misinterpret their messages. COMMUNICATION 7. National Culture - culture influences the form, formality, openness, patterns, and use of information in communications. COMMUNICATION Overcoming the Barriers to Effective Interpersonal Communication: COMMUNICATION Active Listening Behaviors: COMMUNICATION Types of Organizational Communication: 1. Formal Communication - Communication that follows the official chain of command or is part of the communication required to do one’s job. 2. Informal Communication - Communication that is not defined by the organization’s hierarchy. Permits employees to satisfy their need for social interaction. Can improve an organization’s performance by creating faster and more effective channels of communication. COMMUNICATION Direction of Communication Flow: 1. Downward - Communications that flow from managers to employees to inform, direct, coordinate, and evaluate employees. 2. Upward - Communications that flow from employees up to managers to keep them aware of employee needs and how things can be improved to create a climate of trust and respect. COMMUNICATION 3. Lateral (Horizontal) Communication - Communication that takes place among employees on the same level in the organization to save time and facilitate coordination. 4. Diagonal Communication - Communication that cuts across both work areas and organizational levels in the interest of efficiency and speed. COMMUNICATION Types of Communication Network: 1. Chain Network - Communication flows according to the formal chain of command, both upward and downward. 2. Wheel Network - All communication flows in and out through the group leader (hub) to others in the group. 3. All-Channel Network - Communication flows freely among all members of the work team. COMMUNICATION Organizational Communication Networks and How They Rate on Effectiveness Criteria: COMMUNICATION The Grapevine: - An informal organizational communication network that is active in almost every organization. Provides a channel for issues not suitable for formal communication channels. The impact of information passed along the grapevine can be countered by open and honest communication with employees. INFORMATION TECHNOLOGY Benefits of Information Technology (IT) 1. Increased ability to monitor individual and team performance. 2. Better decision making based on more complete information. 3. More collaboration and sharing of information 4. Greater accessibility to co-workers. INFORMATION TECHNOLOGY Networked Computer Systems: - Linking individual computers to create an organizational network for communication and information sharing. E-mail Instant messaging Voice-mail and fax Electronic data exchange (EDI) Teleconferencing and videoconferencing Intranets and extranets INFORMATION TECHNOLOGY Tips for Sending Emails: 1. Always use the subject line. 2. Be careful using emoticons and acronyms for business communication. 3. Write clearly and briefly. 4. Copy e-mails to others only if they really need the information. 5. Sleep on angry e-mails before sending. INFORMATION TECHNOLOGY Types of Network Systems 1. Intranet - an internal network that uses Internet technology and is accessible only to employees. 2. Extranet - an internal network that uses Internet technology and allows authorized users inside the organization to communicate with certain outsiders, such as customers and vendors. 3. Wireless capabilities - wireless communication depends on signals sent through air or space without any physical connection, using things such as microwave signals, satellites, radio waves INFORMATION TECHNOLOGY How IT Affects Organizations: 1. Removes the constraints of time and distance – Allows widely dispersed employees to work together. 2. Provides for the sharing of information – Increases effectiveness and efficiency 3. Integrates decision making and work – Provides more complete information and participation for better decisions 4. Creates problems of constant accessibility to employees – Blurs the line between work and personal lives INFORMATION TECHNOLOGY Ethical Concerns for E-mail and Voice-mail Use: 1. Not necessarily private - Employer has access to them. 2. Many private sector employees are not covered by privacy legislation. 3. Managers need to clearly convey: - Whether communications will be monitored - Company policies on personal Internet and e-mail use INFORMATION TECHNOLOGY Current Communication Issues: 1. Being Connected Versus Being Concerned - Managing Internet gripe sites is a valuable resource for unique insights into the organization Employee complaints (“hot-button” issues) Customer complaints - Responding to Internet gripe sites Recognize them as a valuable source of information Post messages that clarify misinformation Take action to correct problems noted on the site Set up an internal gripe site Continue to monitor the public gripe site INFORMATION TECHNOLOGY 2. Managing the Organization’s Knowledge Resources - Build on-line information databases that employees can access - Create “communities of practice” for groups of people who share a concern, share expertise, and interact with each other INFORMATION TECHNOLOGY Communication & Customer Service:  Communicating Effectively with Customers - Recognize the three components of the customer service delivery process: The customer The service organization The service provider - Develop a strong service culture focused on the personalization of service to each customer Listen and respond to the customer Provide access to needed service INFORMATION TECHNOLOGY “Politically Correct” Communication: - Do not use words or phrases that stereotype, intimidate, or offend individuals based on their differences - Choose words carefully to maintain as much clarity as possible in communications  IE 001 Engineering Management Motivating Employees MOTIVATION INTENDED LEARNING OUTCOMES: 1. What is motivation? 2. Compare and contrast the: early theories of motivation contemporary theories of motivation 3. Discuss current issues in motivation 4. Some suggestions for motivating employees MOTIVATION What is Motivation? - the processes that account for an individual’s willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need. - refers to the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. - Motivation works best when individual needs are compatible with organizational goals. MOTIVATION - Three (3) elements in the definition: Effort: a measure of intensity or drive Direction: toward organizational goals Need: personalized reason to exert effort (persistence – putting forth effort to achieve the goals) MOTIVATION The Motivation Process: EARLY THEORIES OF MOTIVATION: Early Theories of Motivation: 1. Maslow’s Hierarchy of Needs Theory 2. McGregor’s Theory X & Theory Y 3. Herzberg’s Two-Factor Theory 4. Three-Needs Theory EARLY THEORIES OF MOTIVATION: Early Theories of Motivation: I. Maslow’s Hierarchy of Needs Theory - is probably the best known theory of motivation. - Within every person, needs were categorized into five levels. Individuals must satisfy lower-order needs before they can satisfy higher order needs Satisfied needs will no longer motivate Motivating a person depends on knowing at what level that person is on the hierarchy - Hierarchy of needs as follows: Lower-order (external): physiological, safety Higher-order (internal): social, esteem, self- actualization EARLY THEORIES OF MOTIVATION: Maslow’s Hierarchy of Needs: Source: Abraham H. Maslow, Robert D. Frager, Robert D., and James Fadiman, Motivation and Personality, 3rd Edition, © 1987. Adapted by permission of Pearson Education, Inc., Upper Saddle River, NJ. EARLY THEORIES OF MOTIVATION: Maslow’s Hierarchy of Five Human Needs: 1. Physiological - food, drink, shelter, sex, and other physical requirements 2. Safety - security & protection from physical and emotional harm, as well as assurance that physical needs will continue to be met 3. Social - affection, belongingness, acceptance, and friendship. 4. Esteem – internal esteem factors such as self- respect, autonomy, achievement & external esteem factors such as status, recognition, & attention. 5. Self-actualization - growth, achieving one’s potential, self-fulfillment; the drive to become EARLY THEORIES OF MOTIVATION: II. McGregor’s Theory X & Theory Y - Douglas McGregor is best known for proposing two assumptions about human nature: Theory X - is a negative view of people that assumes employees have little ambition, dislike work, avoid responsibility, and needs close supervision to work effectively. Theory Y - is a positive view that assumes employees enjoy work, seek out and accept responsibility, and exercise self- direction. - Motivation is maximized by participative EARLY THEORIES OF MOTIVATION: II. McGregor’s Theory X & Theory Y (cont’d) - There are 2 types of motivators: extrinsic motivators – factors that are external to the individual intrinsic motivators – factors that are internal - Another way of looking at the X and Y theories: Theory X assumes that lower-order needs (Maslow’s) dominate individuals Theory Y assumes that higher order needs dominate. EARLY THEORIES OF MOTIVATION: III. Herzberg’s Two-Factor Theory - also called motivation-hygiene theory - Job satisfaction and job dissatisfaction are created by different factors: Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction Motivators: intrinsic (psychological) factors that create job satisfaction - Attempted to explain why job satisfaction does not result in increased performance No satisfaction - opposite of satisfaction (not dissatisfaction) It suggests that intrinsic factors are related to job satisfaction and motivation, and extrinsic factors are associated with job dissatisfaction EARLY THEORIES OF MOTIVATION: Herzberg’s Two-Factor Theory Source: Based on F. Herzberg, B. Mausner, and B. B. Snyderman, The Motivation to Work (New York: John Wiley, 1959). EARLY THEORIES OF MOTIVATION: Contrasting Views of Satisfaction–Dissatisfaction - The basis of Herzberg’s theory is that he believed that the opposite of satisfaction was not dissatisfaction. - Removing dissatisfying characteristics from a job would not necessarily make the job satisfying. EARLY THEORIES OF MOTIVATION: IV. Three-Needs Theory - David McClelland and his associates proposed the three-needs theory, which says there are three acquired (not innate) needs that are major motives in work: need for achievement (nAch) - which is the drive to succeed and excel in relation to a set of standards need for power (nPow) - which is the need to make others behave in a way that they would not have behaved otherwise need for affiliation (nAff) - which is the desire for friendly & close interpersonal relationships CONTEMPORARY THEORIES OF MOTIVATION Contemporary Theories of Motivation: 1. Goal-setting theory 2. Reinforcement theory 3. Job design theory 4. Equity theory 5. Expectancy theory CONTEMPORARY THEORIES OF MOTIVATION I. Goal Setting Theory: - Says that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals. working toward a goal is a major source of job motivation, studies on goal setting have demonstrated that specific and challenging goals are superior motivating forces. goal-setting theory says that motivation is maximized by difficult goals, whereas achievement motivation is stimulated by moderately challenging CONTEMPORARY THEORIES OF MOTIVATION - the intention to work toward hard and specific goals is a powerful motivating force, under the proper conditions, it can lead to higher performance. However, no evidence indicates that such goals are associated with increased job satisfaction. CONTEMPORARY THEORIES OF MOTIVATION Contingencies that Affect Goal Performance Relationship: 1. Goal commitment – goal setting theory assumes that an individual is committed to the goal when: goals are made public the individual has an internal locus of control goals are self-set rather than assigned 2. Self-efficacy - refers to an individual’s belief that he or she is capable of performing a task. The higher your self- efficacy, the more confidence you have to succeed in a task. CONTEMPORARY THEORIES OF MOTIVATION 3. National culture – the value of goal setting theory depends on the national culture. It is well adapted to North American countries because its main idea align with their cultures. it assumes that subordinates will be reasonably independent that people will seek challenging goals that performance is considered important by both managers and subordinates CONTEMPORARY THEORIES OF MOTIVATION Goal Setting Theory: CONTEMPORARY THEORIES OF MOTIVATION II. Reinforcement Theory: - says that behavior is a function of its consequences. Reinforcers are those consequences that immediately follow a behavior and increase the probability that the behavior will be repeated. - Reinforcement theory ignores factors such as goals, expectations, and needs. Instead, it focuses solely on what happens to a person when he or she does something. CONTEMPORARY THEORIES OF MOTIVATION III. Job Design Theory: - Job design refers to the way tasks are combined to form complete jobs. - Factors influencing job design: Changing organizational environment/ structure The organization’s technology Employees’ skills, abilities, and preferences CONTEMPORARY THEORIES OF MOTIVATION - Job enlargement Increasing the scope (number of tasks) in a job Job scope – is the number of different tasks required in a job and the frequency with which these tasks are repeated. - Job enrichment Increasing responsibility and autonomy (depth) in a job by adding planning and evaluating responsibilities. Job depth - is the degree of control employees have over their work. CONTEMPORARY THEORIES OF MOTIVATION Job Characteristics Model (JCM): - A framework for designing motivating jobs. - Five primary job characteristics: Skill variety: how many skills and talents are needed? Task identity: does the job produce a complete work? Task significance: how important is the job? Autonomy: how much independence does the jobholder have? Feedback: do workers know how well they are doing? CONTEMPORARY THEORIES OF MOTIVATION Job Characteristics Model: Source: J. R. Hackman and J. L. Suttle (eds.), Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of authors. CONTEMPORARY THEORIES OF MOTIVATION Guidelines for Job Redesign: Source: J. R. Hackman and J. L. Suttle (eds.), Improving Life at Work (Glenview, IL: Scott, Foresman, 1977). With permission of authors. CONTEMPORARY THEORIES OF MOTIVATION Guidelines for Job Redesign: 1. Combine tasks (job enlargement) to create more meaningful work. 2. Create natural work units to make employees work important and whole. 3. Establish external and internal client relationships to provide feedback. 4. Expand jobs vertically (job enrichment) by giving employees more autonomy. 5. Open feedback channels to let employees know how well they are doing. CONTEMPORARY THEORIES OF MOTIVATION Redesigning Job Design Approaches: 1. Relational perspective of work design - focuses on how people’s tasks and jobs are increasingly based on social relationships. 2. Proactive perspective of work design - says thatemployees are taking the initiative to change how their work is performed; they are more involved in decisions and actions that affect their work. high-involvement work practices - are work practices designed to elicit greater input or involvement from CONTEMPORARY THEORIES OF MOTIVATION IV. Equity Theory - Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs- outcomes ratio with the inputs- outcomes ratios of relevant others. If the ratios are perceived as equal then a state of equity (fairness) exists If the ratios are perceived as unequal, inequity exists and the person feels under- or over- rewarded When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice) CONTEMPORARY THEORIES OF MOTIVATION - Employee responses to perceived inequities: Distort own or others’ ratios Induce others to change their own inputs or outcomes Change own inputs (increase or decrease efforts) or outcomes (seek greater rewards) Choose a different comparison (referent) other (person, systems, or self) Quit their job - Employees are concerned with both the absolute and relative nature of CONTEMPORARY THEORIES OF MOTIVATION Equity Theory: Person 1 is the employee; and person 2 is a relevant other or referent. CONTEMPORARY THEORIES OF MOTIVATION - Equity theory focuses on: Distributive Justice – the perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what). – influences an employee’s satisfaction Procedural Justice – the perceived fairness of the process used to determine the distribution of rewards (i.e. how who received what) – affects an employee’s organizational commitment CONTEMPORARY THEORIES OF MOTIVATION V. Expectancy Theory - states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. - Key to the theory is understanding & managing employee goals and the linkages among and between effort, performance, and rewards Effort: employee abilities and training/ development Performance: valid appraisal systems Rewards (goals): understanding employee needs CONTEMPORARY THEORIES OF MOTIVATION Simplified Expectancy Model: CONTEMPORARY THEORIES OF MOTIVATION Expectancy Variables or Relationships: 1. Expectancy (effort-performance linkage) - the perceived probability that an individual’s effort will result in a certain level of performance 2. Instrumentality - the perception that a particular level of performance will result in attaining a desired outcome (reward) 3. Valence - the attractiveness/importance of the performance reward (outcome) to the individual CONTEMPORARY THEORIES OF MOTIVATION Increasing Motivation:  CURRENT ISSUES IN MOTIVATION Current Issues in Motivation: 1. Cross-cultural Challenges - Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics. Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy The need for achievement (nAch) is lacking in other cultures Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance  CURRENT ISSUES IN MOTIVATION 2. Cross-cultural Consistencies - Interesting work is widely desired, as is growth, achievement, and responsibility. 3. Motivating Unique Groups of Workers - Motivating a diverse workforce through flexibility. Men desire more autonomy than do women Women desire learning opportunities, flexible work schedules, and good interpersonal relations  CURRENT ISSUES IN MOTIVATION Snapshots of Cultural Differences in Motivation (According to Studies):  CURRENT ISSUES IN MOTIVATION 4. Flexible Work/Job Schedules - Compressed workweek Longer daily hours, but fewer days - Flexible work hours (flextime) Specific weekly hours with varying arrival, departure, lunch/break times around certain core hours during which all employees must be present - Job Sharing Two or more people split a full-time job - Telecommuting Employees work from home using computer links  CURRENT ISSUES IN MOTIVATION 5. Motivating Professionals - Characteristics of professionals Strong and long-term commitment to their field of expertise Loyalty is to their profession, not to the employer Have the need to regularly update their knowledge Don’t define their workweek as 8:00 am to 5:00 pm - Motivators for professionals Job challenge Organizational support of their work  CURRENT ISSUES IN MOTIVATION 6. Motivating in a Unionized Environment - Unionized workplaces provide challenges to motivation theories - Unions worry that differential pay for doing similar work can hurt cooperation 7. Motivating in the Public Sector - Productivity is more difficult to measure because the work carried out is often of a service nature - Harder to make link between rewards and productivity - Research suggests that setting goals significantly improves motivation of public sector employees  CURRENT ISSUES IN MOTIVATION 8. Motivating Contingent Workers - Opportunity to become a permanent employee - Opportunity for training - Equity in compensation and benefits 9. Motivating Low-Skilled, Minimum-Wage Employees - Employee recognition programs - Provision of sincere praise  CURRENT ISSUES IN MOTIVATION Designing Appropriate Rewards Programs: 1. Open-book management - Involving employees in workplace decision by opening up the financial statements of the employer 2. Employee recognition programs - Giving personal attention and expressing interest, approval, and appreciation for a job well done  CURRENT ISSUES IN MOTIVATION 3. Pay-for-performance - Variable compensation plans that reward employees on the basis of their performance. Piece rates, wage incentives, profit-sharing, and lump-sum bonuses 4. Stock option programs - Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price.  FROM THEORY TO PRACTICE Suggestions for Motivating Employees: Recognize individual differences in terms of needs, attitudes, personality, and other important individual factors. Match people to jobs by identifying what needs are important to individuals and trying to provide jobs that allow them to fulfill those needs. Individualize rewards. Because employees have different needs, what is a reward and reinforcer to one may not work for another.  FROM THEORY TO PRACTICE Suggestions for Motivating Employees (cont’d): Link rewards to performance by making rewards contingent on desired levels of performance. Check the system for equity. Employees should perceive that the rewards or outcomes are equal to the inputs given. Use recognition. Using recognition is a powerful, yet low-cost means to reward employees. Don’t ignore money. The allocation of performance-based increases, piecework bonuses, and other pay  FROM THEORY TO PRACTICE Suggestions for Motivating Employees:  FROM THEORY TO PRACTICE Basic Principles to Remember in Motivation: Motivating employees starts with motivating yourself Always work to align goals of the organization with goals of employees Key to supporting the motivation of your employees is understanding what motivates each of them Recognize that supporting employee motivation is a process, not a task Support employee motivation by using organizational systems (for example, policies and procedures) -- don't just  IE 001 Engineering Management Leadership LEADERSHIP INTENDED LEARNING OUTCOMES: 1. Define leader and leadership 2. Differentiate leadership from management 3. Compare and contrast the early theories of leadership 4. Describe the three major contingency theories of leadership 5. Describe the contemporary views of leadership. 6. Describe the contemporary issues affecting leadership. LEADERSHIP What is a Leader? - is someone who can influence others and who has managerial authority. What is Leadership? - this is what leaders do. - it is a process of leading a group and influencing that group to achieve its goals. Are all Managers Leaders? - ideally, they should be, since leading is one of the four management functions. LEADERSHIP Can anyone be a Leader? - Some people don’t have what it takes to be a leader. - Some people are motivated to lead than others. Is leadership always necessary? - Some people don’t need leaders. - Those with experience, training, professional orientation or need for independence need less leadership support. LEADERSHIP Exhibit 1: Managership Vs. Leadership: LEADERSHIP THEORIES Early Leadership Theories: I. Leadership Trait Theories - researchers tried to identify certain traits and characteristics that would differentiate leaders from non-leaders. - researchers eventually recognized that traits alone were not sufficient for identifying effective leaders. LEADERSHIP THEORIES Seven Traits Associated with Leadership: Drive Desire to Lead Honesty & integrity Self-confidence Intelligence Job-relevant knowledge Extraversion LEADERSHIP THEORIES II. Leadership Behavior Theories - researchers tried to identify certain behaviors that differentiated effective leaders from ineffective leaders. Four (4) Main Leader Behavior Studies: 1. University of Iowa studies 2. The Ohio State studies 3. University of Michigan studies 4. Managerial grid LEADERSHIP THEORIES 1) Univ. of Iowa Studies (Kurt Lewin): - identified 3 leadership styles: autocratic style - centralized authority, low participation democratic style - involvement, high participation, feedback Laissez-faire style - hands-off management - research findings 🡪 mixed results; initial results show that democratic was most effective later studies showed that no specific style is better, showing mixed results LEADERSHIP THEORIES 2) Ohio State Studies: - identified two important dimensions of leader behavior: initiating structure - the extent to which a leader defined his or her role and the roles of group members in attaining