Industrial Organization & Management IE 125 Report and Discussions PDF

Chapter 3: Human Resource Management Overview and Definition of HRM *(Cabreros, Carillas)* ----------------------------------------------------- **Human Resource Management (HRM)**, also referred to as personnel management, involves the strategic activities of acquiring, developing, and compensati...

Chapter 3: Human Resource Management Overview and Definition of HRM *(Cabreros, Carillas)* ----------------------------------------------------- **Human Resource Management (HRM)**, also referred to as personnel management, involves the strategic activities of acquiring, developing, and compensating employees to ensure they effectively perform their roles within an organization. It focuses on managing people to enhance productivity, maintain high performance, and ensure employee satisfaction and retention***.*** **Purpose of HRM:** HRM makes sure the organization has the right people in place to achieve its goals by managing talent efficiently. It focuses on aligning employee skills and roles with the company's objectives, helping to create an engaged and productive workforce, which is key to long-term success. **Functions:** - **Recruitment & Selection:** This involves attracting, evaluating, and hiring the right candidates for available positions. It aims to find people who not only have the required skills but also fit well with the company culture for long-term success. - **Training & Development:** HRM helps employees improve their skills and grow their careers, which is essential for keeping the workforce competitive. This includes creating training programs that help employees perform well in their current jobs and prepare for future opportunities. - **Compensation & Benefits:** HRM sets up fair pay and benefits packages to attract and keep talent. This includes competitive salaries, bonuses, and other incentives that motivate employees and show that the organization values their contributions. - **Performance Management:** This involves assessing how well employees are doing their jobs and helping them improve through feedback and evaluations. Effective performance management sets clear goals, recognizes top performers, and supports employees in reaching their career objectives. - **Employee Relations:** HRM helps maintain good relationships in the workplace and resolves conflicts to keep morale high. Encouraging open communication and offering solutions for disputes helps create a positive and cooperative work environment. **Impact of HRM:** - **Influences Employee Productivity, Satisfaction, and Retention:** HRM increases employee productivity by providing support and resources. It also boosts job satisfaction through development opportunities, helping reduce turnover and saving costs related to hiring and training new employees. - **Creates a Positive Work Environment:** HRM plays a major role in shaping a work culture that matches the company's goals. By encouraging teamwork and recognizing employees\' efforts, HRM creates a workplace where people feel motivated to do their best. - **Ensures Compliance with Labor Laws and Company Policies:** HRM makes sure the company follows labor laws and its own policies. This means creating fair work practices and minimizing legal risks, ensuring a fair and safe workplace. Fundamentals of HRM ------------------- **Fundamentals:** **1. Recruitment and Selection:** Identifying and attracting the right talent for the organization. **2. Training and Development:** Enhancing employees\' skills and competencies to improve performance and career growth. **3. Performance Management:** Evaluating and managing employee performance through appraisals, feedback, and goal-setting. **4. Compensation and Benefits:** Designing fair and competitive salary structures and benefits packages to motivate and retain employees. **5. Employee Relations:** Maintaining positive relationships between employees and management, addressing conflicts, and ensuring compliance with labor laws. **6. Talent Management:** Focusing on the development and retention of high-potential employees to meet organizational needs. **7. Workforce Planning:** Analyzing current workforce capabilities and forecasting future needs to ensure alignment with business goals. **8. Diversity and Inclusion:** Promoting a diverse workforce and creating an inclusive environment that values different perspectives. **9. Organizational Culture:** Shaping and maintaining the company's values, beliefs, and behaviors to align with its mission. **10. Compliance and Legal Issues:** Ensuring adherence to labor laws and regulations to mitigate legal risk. Steps in Providing HR *(Corpuz, Cazar)* --------------------------------------- *Appropriate human resources -* Refers to the individuals within the organization who make a valuable contribution to management system goal attainment. **[Four Steps to Providing Human Resources for an Organization]** - Step 1: **Recruitment** Is the initial attraction and screening of the supply of prospective human resources available to fill a position. Its purpose is to narrow a large field of prospective employees to a relatively small group of individuals from which someone eventually will be hired. Recruitment activities must begin with a thorough understanding of the position to be filled. The technique commonly used to gain that understanding is known as ***Job Analysis.*** Two key components of Job Analysis are: - JOB DESCRIPTION : Outlines the activities involved in the job. *ex: job title, location, duties, working condition* - JOB SPECIFICATION: Defines the characteristics and qualifications of the ideal candidate for the job. *ex: education, training, judgement, responsibilities* Recruiters must be able to pinpoint sources of human resources.Sources of human resources available to fill a position can be generally categorized in two ways: - SOURCES INSIDE THE ORGANIZATION: The pool of employees within the organization is one source of human resources. Some individuals who already work for the organization may be well qualified for an open position. Most internal movements are [promotions]. - SOURCES OUTSIDE THE ORGANIZATION: 1. *Competitors* - Hiring from competing organizations offers advantages: the individual knows the business, the competitor covers their training, the competitor is weakened by the loss, and the new hire offers insights for competition. 2. *Employment Agencies* - They assist in matching job seekers with employers. Public agencies offer services for free, while private ones charge a fee, paid by either the employee or the hiring organization after a successful placement. 3. *Educational Institutions* - Recruiters often visit educational institutions to interview soon-to-graduate students. Schools vary in their offerings, so recruitment efforts should target institutions most likely to have candidates suited for the open position. - Step 2: **Selection** Choosing an individual to hire from all those who have been recruited. Selection is dependent on the first step, recruitment. - STAGES OF THE SELECTION PROCESS - Preliminary screening from records, data sheets, etc. - Preliminary interview - Intelligence Tests/Aptitude Tests - Personality Tests - Performance Reference - Diagnostic Interview - Physical Examination - Personal Judgement. Two tools often used in the selection process: - TESTING: evaluates human resources for job-relevant qualities. Tests used in organizations typically fall into four main categories. 1. *Aptitude tests* - assess an individual\'s potential to perform tasks. Some measure general intelligence, while others evaluate specific abilities like mechanical, clerical, or visual skills. 2. *Achievement tests* - assess an individual's skill or knowledge in a specific area, gained through training or experience. Examples include typing and keyboarding tests. 3. *Vocational Interest Tests* - The goal is to select candidates who are genuinely interested in the position\'s activities. 4. *Personality Test* -assess dimensions such as emotional maturity, honesty, and objectivity. They can be useful for identifying candidates with specific traits needed for a job. - ASSESSMENT CENTERS: is a tool used - in employee selection and also in human resource training and organizational development. An assessment center is a program (not a place) where participants take part in exercises simulating key organizational activities. Evaluators assess their performance based on job-related criteria like communication, leadership, and problem-solving skills. - Step 3: **Training** Is the process of developing qualities in human resources that will enable them to be more productive and thus contribute more to organizational goal attainment. The training of individuals is essentially a four-step process: **Determining Training Needs** - are the skills or knowledge areas that require further development to enhance productivity. Training must focus on these needs to be effective. Continuous training is essential, even for long-term employees, to further improve their skills. **Designing the Training Program -** After identifying training needs, a program must be designed to address them. This involves gathering relevant facts and activities tailored to meet the specific training requirements, which will vary based on the identified needs. **Administering the Training Program -** The next step is to administer the training program using various techniques to convey information and develop skills. 1. Lectures - A common method where an instructor presents information to a group. While efficient for sharing knowledge, lectures limit interaction and practice, often failing to promote behavioral change. 2. Programmed Learning - This method provides instruction without an instructor, allowing trainees to learn at their own pace and check responses. It offers immediate feedback but lacks support for learners who have questions. **Evaluating the Training Program -** Management should evaluate the effectiveness of the training program after completion. - Step 4: **Performance Appraisal** The process of reviewingindividual's past productive activity to evaluate the contribution they have made toward attaining management system objectives. Also called [Performance Review] and [Performance Evaluation.] Why Use Performance Appraisals? Douglas McGregor has suggested the following three reasons for using performance appraisal: 1. They provide Systematic judgements to support salary increases, promotions, transfers, and sometimes demotions or terminations. 2. They are means of telling subordinates how they are doing and of suggesting needed changes in behavior, attitudes, skills, or job knowledge; they let subordinates know where they stand with the boss. 3. They furnish a useful basis for the coaching and counseling of superiors. SEVERAL METHODS OF PERFORMANCE APPRAISALS: - Rating Scale - *ex: 1 to 7.* - Employee Comparison - *rank employees according their value to organization* - Free-Form Essay - *simply write down their impressions of employees in paragraph form.* - Critical-form essay - *appraisers write down good or bad events involving employees* POTENTIAL WEAKNESS OF PERFORMANCE APPRAISALS: 1. Focus employees on short-term rewards rather than on issues that are important to the long-run success of the organization. 2. Individuals involved in performance appraisals view them as a reward-punishment situation. 3. The emphasis of performance appraisal is on completing paperwork rather than on critiquing individual performance. 4. Individuals being evaluated view the process as unfair or biased. 5. Subordinates react negatively when evaluators offer unfavorable comments. Compensating Employees *(Corpuz, Cazar)* ---------------------------------------- **Employee Compensation** refers to the combination of salary and wages, benefits, bonuses, and any additional peaks employees receive for performing their job. TYPES OF EMPLOYEE COMPENSATION 1. **Direct Compensation** - is the salary and wages that are paid directly to employees. (any monetary payment). 2. **Indirect Compensation** - Compensation that has a monetary value but isn't paid directly to employees. (non-cash benefits). 3. **Non-Monetary Compensation** - Refers to any remaining employee compensation that doesn't have a monetary value. Employers looking to craft an attractive and competitive compensation package might consider the following benefits: *health, vision, and dental insurance, mental health insurance, retirement plans, flexible working hours. etc.* Some specific types of leave to consider: *Maternity leave, annual leave, sick leave, unpaid leave etc.* A **Total Compensation Statement** is an employer-prepared statement that gives employees an overview of all compensation they receive. This is a prepared annual statement to provide employees a detailed look at all the compensation they receive in a given year. Motivation and Motivational Theories *(Reyes, Saavedra)* -------------------------------------------------------- **Definition** Motivation is the force that pushes us to take action and pursue goals. It's what gets us out of bed in the morning and helps us stick with tasks, even when they get tough. **Types of Motivation** 1. **Intrinsic Motivation**: This comes from within. You do something because you enjoy it or find it fulfilling. For example, a person might paint because they love creating art, not for any external reward. 2. **Extrinsic Motivation**: This is driven by external factors, like rewards or recognition. For example, someone might work hard to earn a bonus or praise from a boss. **Importance of Motivation** - **Goal Achievement**: Motivation is crucial for reaching personal and professional goals. It helps you stay focused and persistent. - **Performance**: Higher motivation often leads to better performance. When you're motivated, you're more likely to put in effort and overcome obstacles. - **Well-being**: Feeling motivated can enhance your overall happiness and satisfaction with life. **How to Enhance Motivation** 1. **Set Clear Goals**: Having specific, achievable goals gives you direction and something to work towards. 2. **Find Personal Meaning**: Connect tasks to your values or interests. If you care about what you're doing, you're more likely to stay motivated. 3. **Create a Supportive Environment**: Surround yourself with positive influences, whether that's encouraging friends, mentors, or a comfortable workspace. 4. **Celebrate Progress**: Acknowledge your achievements, no matter how small. This reinforces your motivation and helps maintain momentum. 5. **Stay Flexible**: Be open to adjusting your goals or methods. Sometimes changing your approach can reignite motivation. By understanding these aspects of motivation, you can find ways to tap into it more effectively in your own life. Motivational theories are ideas that explain what drives people to take action. They help us understand how different factors influence behavior and performance. These theories can focus on needs, goals, and fairness, guiding ways to boost motivation in areas like work, school, and personal life. Motivational theories are frameworks that explain what drives individuals to take action and how different factors influence their motivation levels. Here's a summary of some key motivational theories: **1. Maslow\'s Hierarchy of Needs** - **Concept**: Proposed by Abraham Maslow, this theory suggests that human motivation is driven by a hierarchy of needs, from basic physiological needs (food, shelter) to higher-level needs (self-actualization). - **Levels**: - Physiological Needs - Safety Needs - Love and Belonging - Esteem Needs - Self-Actualization **2. Herzberg\'s Two-Factor Theory** - **Concept**: Frederick Herzberg identified two categories of factors that influence motivation: - **Hygiene Factors**: Conditions that prevent dissatisfaction (e.g., salary, job security). - **Motivators**: Factors that drive satisfaction and motivation (e.g., recognition, achievement). **3. Self-Determination Theory (SDT)** - **Concept**: Developed by Edward Deci and Richard Ryan, this theory emphasizes intrinsic motivation and identifies three psychological needs: - Autonomy (control over actions) - Competence (mastery of tasks) - Relatedness (connection with others) - **4. Goal-Setting Theory** - **Concept**: Proposed by Edwin Locke, this theory posits that specific and challenging goals lead to higher performance. Setting clear, measurable goals enhances focus and motivation. **5. Expectancy Theory** - **Concept**: Victor Vroom's theory states that motivation is influenced by: - **Expectancy**: Belief that effort will lead to performance. - **Instrumentality**: Belief that performance will lead to a reward. - **Valence**: Value placed on the reward. **6. Equity Theory** - **Concept**: Developed by John Stacey Adams, this theory suggests that individuals are motivated by fairness. Employees compare their input-output ratios (effort vs. rewards) with those of others, and perceived inequities can lead to demotivation. **7. Reinforcement Theory** - **Concept**: Based on B.F. Skinner\'s work, this theory posits that behavior is shaped by its consequences. Positive reinforcement (rewards) can encourage desired behaviors, while punishment can deter undesired behaviors. **8. Drive Theory** - **Concept**: This theory suggests that motivation arises from biological drives. When needs (like hunger) are unmet, they create a drive that prompts action to fulfill those needs. **Conclusion** Understanding these motivational theories helps individuals, leaders, and organizations create environments that foster motivation and enhance performance. Each theory offers unique insights into what drives behavior and how to effectively motivate others. Case Study ---------- - Cisco Recruits the Best Minds **CASE STUDY, RECRUITING - THE CISCO WAY** Cisco sources revealed company policy at attracting top 10-15% people in networking industry Vision statement \"Attracting, growing, and retaining the great talent in critical in sustaining Cisco\'s competitive advantage. **BACKGROUND** Cisco was founded in 1984 by a group of computer scientist and Stanford who designed operating software called IOS (Internet Operating System) This software could send stream of data from one computer to another, which was loaded into a box containing a microprocessors specially designed for routing. In 1993, Cisco installed an internet-based system for large multinational corporate customers. By 1995, It introduced application for selling products or services o its website. **INTRODUCTION TO THE CASE** In 1995, global networking major, Cisco found that despite hiring an average of 1000 people in every three months during the year, the company still had hundreds of openings. Cisco hired more than 1000 employees every quarter - around 10% of the total jobs generated to through internet in the Silicon Valley. The management realize that they had to adopt innovative recruitment measures to get the best people and remain the leader in the Internet Era. Foremost among these was the first of its kind online recruitment called \"Friends program\" In 2001, the company recruited around 40-50% of its employees through \"Make a friend @ cisco\" online program and other such initiatives As part if the strategy to attract the best talent, cisco changed the way it used was advertisements in newspapers. Instead of listing specific job openings, the company featured its internet address in its ads and invited prospective candidate to apply. Cisco linked its website to the Dilbert web page, which registered around 2.5 million hits per day, mainly from engineers and internet-savvy managers. To speed up the hiring process, cisco was hired in-house headhunters to identify qualified candidates for managers. **E-RECRUITMENT** NEW METHOD OF RECRUITMENT USING OF NEW TECHNOLOGY LOW COST SPEED UP THE HIRING PROCESS PROMOTES THE ORGANIZATION **BENEFITS** Job page hits 500,000 hits per month by late 1999 Generated stream of reports who visited websites Management impressed with high fine-tuned strategy New recruitment initiatives stablish Approximately between 8000 people a hear was hiring by Cisco\'s **ADVANTAGES** LOW COST MORE FASTER TIMELINE QUALITY CANDIDATES NO BUDGET NEEDED **A CONCLUSION** The Cisco\'s recruitment technique is very beneficial, cost effective and innovative. It focus on attracting top networking talent, and Cisco had made the Recruitment process smooth and easy. This approach ensures that Cisco can effectively identify and hire the best candidates for their needs. Chapter 4: Leading ================== Definition of Leading/Directing *(Hilbero, Hipolito)* ----------------------------------------------------- a. **Leading vs. Managing** - Managing is more about overseeing tasks and processes - Leading is about inspiring and guiding people toward a common goal. b. **Example of Leading and Managing** c. **Purpose of Leading/Directing** - - - - - - - - Fundamentals of Leading ----------------------- 1. [Self-Awareness:] Leaders establish authority and credibility both within and outside of their organizations when their words and deeds align. 2. [Effective Communication]: In order to gain people\'s trust and make sure that everyone is aware of your vision and how to collaborate to achieve it. 3. [Influence in Leadership:] Building trust across the entire organization can be achieved by keeping your door open and being accessible to your staff most of the time. 4. [Visionary Thinking:] Proficient leaders are able to see beyond the details. These leaders develop an organizational vision that motivates team members to collaborate toward a shared objective. 5. [Adaptability:] Given the speed at which technology is developing, as well as the volatility of markets and consumer demand, many leaders must be able to quickly adjust to changes. 6. [Learning Agility:] It guarantees that leaders will know when to steer the organization in a different direction or assist team members in adopting new behaviors. a. **Importance of Leading/Directing** - Promoting Employee Involvement - Effective leadership makes employees feel more engaged and connected to the organization, resulting in increased satisfaction and productivity. - Navigating Change - Leaders play a crucial role in steering organizations through changes, like innovation or shifts in the market, helping employees adapt smoothly. - Cultivating Organizational Culture - Leaders play a key role in shaping the company\'s culture, promoting creativity, teamwork, and shared values. - Ensuring Long-term Success - Leaders who manage well create an atmosphere of ongoing learning and development, setting the stage for the organization's enduring growth and achievement. Leadership Theories and Behaviors *(Ramos)* ------------------------------------------- The **trait approach to leadership** is based on early leadership research that assumed a good leader is born, not made. The mainstream of this research attempted to describe successful leaders as precisely as possible. One of these summaries concludes that successful leaders tend to possess the following characteristics: 1\. Intelligence, including judgment and verbal ability 2\. Past achievement in scholarship and athletics 3\. Emotional maturity and stability 4\. Dependability, persistence, and a drive for continuing achievement 5\. The skill to participate socially and adapt to various groups 6\. A desire for status and socioeconomic position **Behavioral Theory** Focus is on action/behavior rather than qualities/traits. Involves analyzing a leader's actions to a specific situation. Proponents of this theory believe that leaders are made, anyone can become a successful leader by learning and adopting certain behaviors. **Leadership Styles** Combination of task and relationship behaviors employed to influence others to accomplish goals. **Autocratic (Authoritarian)** **Democratic (Participative)** **Laissez-faire (Permissive)** **Leadership Situation and Decision** **The Tannenbaum and Schmidt Leadership Continuum**- Tannenbaum and Schmidt, who wrote one of the first and perhaps most often quoted articles on the situational approach to leadership, because one of the most important tasks of a leader is making sound decisions, all practical and legitimate leadership thinking emphasizes decision making. This model is actually a continuum, or range, of leadership behavior available to managers when they are making decisions. Managers displaying leadership behavior toward the right of the model are more democratic, and are called **subordinate-centered leaders**. Those displaying leadership behavior toward the left of the model are more autocratic, and are called **boss-centered leaders**. Each type of leadership behavior in this model is explained in more detail in the following list: **1. The manager makes the decision and announces it**---This behavior is characterized by the manager (a) identifying a problem, (b) analyzing various alternatives available to solve it, (c) choosing the alternative that will be used to solve it, and (d) requiring followers to implement the chosen alternative. The manager may or may not use coercion, but the followers have no opportunity to participate directly in the decision-making process. **2. The manager "sells" the decision**---The manager identifies the problem and independently arrives at a decision. Rather than announce the decision to subordinates for implementation, however, the manager tries to persuade subordinates to accept the decision. **3. The manager presents ideas and invites questions**---?9 4\. **The manager presents a tentative decision that is subject to change**---The manager allows subordinates to have some part in the decision-making process but retains the responsibility for identifying and diagnosing the problem. The manager then arrives at a tentative decision that is subject to change on the basis of subordinate input. The final decision is made by the manager. **5. The manager presents the problem, gets suggestions, and then makes the decision**---This leadership activity is the first of those described thus far that allows subordinates the opportunity to offer problem solutions before the manager does. The manager, however, is still the one who identifies the problem. **6. The manager defines the limits and asks the group to make a decision**---In this type of leadership behavior, the manager first defines the problem and sets the boundaries within which a decision must be made. The manager then enters into partnership with subordinates to arrive at an appropriate decision. The danger here is that if the group of subordinates does not perceive that the manager genuinely desires a serious group decision-making effort, it will tend to arrive at conclusions that reflect what it thinks the manager wants rather than what the group actually wants and believes is feasible. **7. The manager permits the group to make decisions within prescribed limits**--- Here, the manager becomes an equal member of a problem-solving group. The entire group identifies and assesses the problem, develops possible solutions, and chooses an alternative to be implemented. Everyone within the group understands the group's decision will be implemented. **Determining how to make decisions as a Leader** The true value of the model developed by Tannenbaum and Schmidt lies in its use of making practical and desirable decisions. According to these authors, the three primary factors, or forces, that influence a manager's determination of which leadership behavior to use in making decisions are as follows: **Forces in the Manager**---Managers should be aware of four forces within themselves that influence their determination of how to make decisions as a leader. **Forces in Subordinates**---A manager also should be aware of forces within subordinates that influence the manager's determination of how to make decisions as a leader. To lead successfully, the manager needs to keep in mind that subordinates are both somewhat different and somewhat alike and that any cookbook approach to leading all subordinates is therefore impossible. Generally speaking, however, managers can increase their leadership success by allowing subordinates more freedom in making decisions when: **Forces in the Situation**---The last group of forces that influence a manager's determination of how to make decisions as a leader are forces in the leadership situation. **INTERACTIONAL THEORIES (1970-present)** Interactional Theories (Marquis and Huston (2015), --based on the premise that leadership behavior is generally determined by the relationship between the leader's personality and the specific situation. **To be a successful leader** -- able to diagnose the situation and select the appropriate strategies. **Burns** (2003), maintained that there are two primary types of leaders in management: **Transactional** -- focuses on results, conforms to the existing structure of an organization and measures success according to that organization's system of rewards and penalties. Transactional leaders have formal authority and positions of responsibility in an organization. This type of leader is responsible for maintaining routine by managing individual performance and facilitating group performance. A transactional manager -- is a traditional manager that is concerned with the **day-to-day operations**. **Transformational** -- a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. **Transformational Leadership (Four I's)** **Qualities/Behaviors of an Effective Leader** **Leadership behaviors** are actions and conduct that leaders incorporate into their management styles in order to effectively lead their teams, motivate them, and achieve their goals (Santiago, 2022). Examples of Effective Leadership Behaviors: **Compassion** - having sympathy and concern for others as these build trust and promote collaboration among team members **Adaptability** -- ability to be always prepared to shift priorities and processes to adapt to changing conditions. **Coaching mindset** - wanting to help employees improve their skill set for them to grow both personally and professionally. A leader should also act as mentor. **Active listening** -- according to 2021 global survey by the Workforce Institute at UKG (USA), 74% of employees say they are more effective at their job when they feel heard; 88% of employees whose companies financially outperform others in their industry feel heard compared to 62% of employees at financially underperforming companies. **Motivation** - Leaders should set the tone for their team's morale. A motivational leader means showing enthusiasm for the company's future. **Accountability** -- a leader need to take accountability and taking responsibility of your shortcomings. Being honest to your mistakes will motivate your subordinates to be accountable as well. **Dependability** - a dependable leader can be trusted to do what they say they'll do, when they say they'll do it, and the way it needs to be done. This instills confidence in the team and can inspire them to do the same. **Proactiveness**-- a proactive leader takes time to plan, identify areas of risks, improve the team's processes, and put initiatives in place to prevent problems before they occur. **Planning** -- the key to being proactive is to plan in order to meet set goals. Problem solving -- the ability to find solutions to difficult or unpredictable problems, and in an ever-changing situations. **Responsibility** - a responsible leaders recognize the fact that they have an obligation to make tough decisions, lead, and are in control of their team. **Goal-oriented** -- the ability of a leader to set clear and realistic goals for the whole team to be equally driven to achieve them. **Purpose** - Purpose goes hand-in-hand with goal-setting. As a leader, you must have a clear future envisioned for your team that drives everyone forward Communication (*Quibang)* ------------------------- **Interpersonal Communication**-a type of communication that takes place between two or more individuals, typically used within an organization. **Communication Skills-**the ability to share information with other individuals **Interpersonal Communication in Organizations** To be effective communicators, managers must understand not only general interpersonal communication concepts, but also the characteristics of interpersonal communication within organizations, or organizational communication. Organizational communication directly relates to the goals, functions, and structure of human organizations. To a major extent, organizational success is determined by the effectiveness of organizational communication. **Formal Organizational Communication** Formal organizational communication refers to the structured exchange of information within an organization, following established channels, protocols, and hierarchies. It typically includes emails, reports, meetings, and memos. **Types of Formal Organizational Communication** - The three basic types of formal organizational communication are ***downward, upward**,* and ***lateral***. ***Downward communication*** flows from higher to lower levels in an organization, providing instructions or feedback. ***Upward communication*** moves from lower levels to higher levels, often sharing ideas or reporting issues. ***Lateral communication*** occurs between individuals or departments at the same organizational level, facilitating coordination and collaboration. **INFORMAL ORGANIZATIONAL COMMUNICATION** IT\'S PATTERNS: The informal organizational communication network, or ***grapevine***, has three main characteristics: Leadership Theories and Behavior *(Espela, Estrada, Fernandez)* --------------------------------------------------------------- E. ***KEY ASPECTS OF LEADERSHIP COMMUNICATION*** #### 1. Clarity and Simplicity: #### Effective leaders ensure their messages are clear and straightforward. In fast-paced environments, ambiguity can lead to confusion and inefficiency. By delivering concise information, leaders help teams focus on priorities without misinterpretation. #### *IMPACT OF EFFECTIVE COMMUNICATION* #### When leaders communicate effectively, it fosters a sense of alignment and purpose within the organization. Clear communication enhances teamwork, encourages innovation, and drives productivity. It also plays a pivotal role in conflict resolution and decision-making, ensuring that teams remain focused and resilient in the face of challenges. F. - Leaders face modern challenges not common in the past. - Key responsibilities include: ============================= - Making difficult decisions (e.g., staff reduction). - Restructuring workflows for efficiency. - Implementing quality-enhancing programs. - Shift from control-and-command to employee involvement and empowerment. - Emphasis on: - Trust and collaboration. - Adaptability to changing environments. - Creating workplaces where employees feel valued and motivated. TRADITIONAL LEADERSHIP vs. MODERN LEADERSHIP ============================================ ***TRADITIONAL LEADERSHIP:*** - Focused on control and authority. - Leaders set strict guidelines and expect close adherence. - Emphasizes structure and top-down decision-making. - Little room for flexibility or team input. ***MODERN LEADERSHIP*** - Encourages team expertise and creativity. - Leaders promote flexibility and empower teams to make decisions. - Emphasizes vision, innovation, and adaptability. - Fosters a sense of ownership and pride in work. FIVE LEADERSHIP STYLE ===================== 1. TRANSFORMATIONAL LEADERSHIP ------------------------------ - **Core Focus:** Inspires and motivates individuals to align with a shared vision and common goals. - **Key Characteristics:** - **Encourages:** ### TASKS OF TRANSFORMATIONAL LEADERS: **1. Raising Awareness:** **2. Creating Vision:** **3. Facilitating Change:** 2. COACHING ----------- - **Core Focus:** Guides and develops team members to overcome specific organizational challenges, like an athletic coach. - **Key Approach:** Identifies improvement areas and provides constructive feedback to foster growth. ### *CHARACTERISTICS OF AN EFFECTIVE COACH:* - Empathy - Strong listening skills. - Insight into people - Diplomacy, and tact. - Patience - Concern for others\' welfare. - Minimum hostility - Self-confidence and emotional stability. - Non-competitiveness - Enthusiasm for working with people. ### COACHING BEHAVIORS: **1. Listens Closely:** **2. Gives Emotional Support:** **3. Shows by Example:** 3. SUPERLEADERSHIP ------------------ - **Core Focus:** Empowers individuals to lead themselves by fostering independence and self-sufficiency. - **Key Approach:** Teaches team members to think independently, act constructively, and maintain a positive mindset. ### CHARACTERISTICS OF SUPERLEADERS: 4. SERVANT LEADERSHIP --------------------- - ***Core Focus:** Prioritizes serving team members over seeking power or control.* - ***Key Approach:** Guides and supports followers, fostering their growth and success to achieve organizational goals.* ### KEY PRINCIPLES: - *Helps team members develop skills and confidence, contributing to personal and professional growth.* - *Encourages a culture of collaboration, trust, and mutual respect.* - *Views relationships as partnerships, working together towards shared goals.* ### CHARACTERISTICS OF SERVANT LEADERS: 5. ENTREPRENEURIAL LEADERSHIP ----------------------------- - **Core Focus:** Approaches leadership with an ownership mindset, treating the organization as if it were their own business. - **Key Approach:** Takes personal responsibility for the organization\'s success, acting as a central figure rather than a minor participant. ### CHARACTERISTICS OF ENTREPRENEURIAL LEADERSHIP: - **Risk-Taking:** Willing to take calculated risks, understanding the potential for both losses and gains. - **Accountability:** Views mistakes as significant issues requiring immediate and serious attention. - **Proactive Engagement:** Actively drives organizational success through decisive actions and strategic thinking. Case Study ---------- - Iwata faces many different issues at Nintendo (*Ref: Modern Management)* ======================================================================== *Iwata, a former programmer, had deep knowledge of Nintendo's strengths and issues. Instead of competing solely on hardware specs, he focused on making gaming more inclusive and accessible to a broader audience, envisioning it as universal entertainment.* WHAT IS THE PROBLEM? -------------------- ***1. Industry Competition*** Nintendo was up against giants like Sony and Microsoft, whose consoles focused on advanced graphics and processing power. Competing directly in this "hardware arms race" was difficult for Nintendo, which needed a unique approach to stand out. ***2. Internal Strains*** Within the company, developers were overworked, and sales were declining. This created pressure to innovate and develop new products that could reignite consumer interest without further straining the workforce. ***3. Need for Change*** The company's first profit decline in four years emphasized the urgency to rethink its strategy. Nintendo had to pivot to avoid falling further behind and to redefine its position in the gaming industry. SOLUTION -------- ***1. Broadening the Market*** - Iwata introduced the Wii and Nintendo DS to expand the gaming audience beyond hardcore gamers. - These products were designed to appeal to non-gamers, families, and people of all ages, focusing on accessibility and fun rather than just high-end graphics. ***2. Leadership Style*** - Iwata used transformational leadership, inspiring and motivating employees to innovate. - He encouraged collaboration and creative freedom, empowering teams to take ownership of their work. ***3. Innovative Tactics*** - Outsourcing smaller projects allowed Nintendo to focus its internal resources on larger, more critical innovations. - Investment in unique technologies, such as the Nintendo 3DS with 3D imagery, helped differentiate Nintendo's products and maintain its position as an innovator in the industry. ### CONCLUSION Iwata's flexible leadership allowed him to reshape Nintendo, showing that adapting to change, empowering employees, and understanding consumers can drive success. The Wii wasn't just a financial win; it transformed the gaming industry and broadened its audience. Iwata's legacy highlights the importance of thinking differently and connecting with audiences in meaningful ways