Essentials of Contemporary Management Chapter 7 PDF

Because learning changes everything.® Chapter 7 Designing Organizational Structure © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1 1. Identify the factors tha...

Because learning changes everything.® Chapter 7 Designing Organizational Structure © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1 1. Identify the factors that influence managers’ choice of an organizational structure. 2. Explain how managers group tasks into jobs that are motivating and satisfying for employees. 3. Describe the types of organizational structures managers can design and explain why they choose one structure over another. © McGraw Hill LLC. 2  Learning Objectives 2 4. Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms. 5. Describe how technology continues to help managers build strategic alliances and network structures to increase efficiency and effectiveness. © McGraw Hill LLC. 3  Designing Organizational Structure 1 Organizing: The process by which managers establish the structure of working relationships among employees to achieve goals. © McGraw Hill LLC. 4  Designing Organizational Structure 2 Organizational Structure: Formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals. © McGraw Hill LLC. 5  Designing Organizational Structure 3 Organizational Design. The process by which managers make specific organizing choices that result in a particular kind of organizational structure. © McGraw Hill LLC. 6  Factors Affecting Organizational Structure Figure 7.1 Access the text alternative for these images © McGraw Hill LLC. 7  Topics for Discussion: Organizational Structure Would a flexible or a more formal structure be appropriate for these organizations: (a) a large department store, (b) a Big Four accountancy firm, or (c) a biotechnology company? Explain your reasoning. [LO 7–1, 7–2] © McGraw Hill LLC. 8  Job Design 1 Job Design: Job Simplification: The process by which The process of reducing managers decide how to the number of tasks that divide tasks into specific each worker performs. jobs. © McGraw Hill LLC. 9  Job Design 2 Job Enlargement: Job Enrichment: Increasing the number of Increasing the degree of different tasks in a given responsibility a worker has job by changing the over a job. division of labor. © McGraw Hill LLC. 10  Job Characteristics Model Job Characteristic Description Skill variety. Employee uses a wide range of skills. Task identity. Worker is involved in all tasks of the job from the beginning to end of the production process. Task significance. Worker feels the task is meaningful to organization. Autonomy. Employee has freedom to schedule tasks and carry them out. Feedback. Worker gets direct information about how well the job is done. © McGraw Hill LLC. 11  Topics for Discussion: Job Characteristics Using the job characteristics model as a guide, discuss how a manager can enrich or enlarge subordinates’ jobs. [LO 7–2] © McGraw Hill LLC. 12  Grouping Jobs into Functions 1 Functional Structure: An organizational structure composed of all the departments that an organization requires to produce its goods or services. © McGraw Hill LLC. 13  The Functional Structure of the Home Depot Figure 7.2 Access the text alternative for these images © McGraw Hill LLC. 14  Grouping Jobs into Functions 2 Advantages: Disadvantages: Encourages learning from Difficult for departments to others doing similar jobs. communicate with others. Easy for managers to Preoccupation with own monitor and evaluate department and losing workers. sight of organizational goals. © McGraw Hill LLC. 15  Divisional Structures An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer. © McGraw Hill LLC. 16  Types of Divisional Structures Product Structure: Each product line or business is handled by a self– contained division. © McGraw Hill LLC. 17  Product Structure Advantages: Allows functional managers to specialize in one product area. Division managers become experts in their area. Corporate managers do not need direct supervision of the division. Divisional management improves the use of resources. © McGraw Hill LLC. 18  Product, Market, and Geographic Structures Figure 7.3 Access the text alternative for these images © McGraw Hill LLC. 19  Types of Divisional Structures 1 Geographic Structure: Global Geographic Each region of a country or Structure: area of the world is served Managers locate different by a self–contained divisions in each of the division. world regions where the organization operates. This structure used when managers are pursuing a multi–domestic strategy. © McGraw Hill LLC. 20  Types of Divisional Structures 2 Global Product Structure. Each product division, not the country or regional managers, takes responsibility for deciding where to manufacture its products and how to market them in foreign countries. © McGraw Hill LLC. 21  Global Geographic and Global Product Structures Figure 7.4 Access the text alternative for these images © McGraw Hill LLC. 22  Types of Divisional Structures 3 Market Structure: Each kind of customer served by a self–contained division. Also called customer structure. © McGraw Hill LLC. 23  Topics for Discussion: Structures When and under what conditions might managers change from a functional to (a) a product, (b) a geographic, or (c) a market structure? [LO 7–1, 7–3] © McGraw Hill LLC. 24  Matrix Design Structure Matrix Structure: An organizational structure that simultaneously groups people and resources by function and product. © McGraw Hill LLC. 25  Matrix and Product Team Structures Figure 7.5 Access the text alternative for these images © McGraw Hill LLC. 26  Product Team Structure Product Team Structure: Cross–Functional Team: Employees are Group of managers permanently assigned to a brought together from cross–functional team and different departments to report only to the product perform organizational team manager or to one of tasks. his direct subordinates. © McGraw Hill LLC. 27  Topics for Discussion: Matrix Structures How do matrix structures and product team structures differ? Why is the product team structure more widely used? [LO 7– 1, 7–3, 7–4] © McGraw Hill LLC. 28  Coordinating Functions and Divisions Authority: Hierarchy of Authority: The power to hold people An organization’s chain of accountable for their command, specifying the actions and to make relative authority of each decisions concerning the manager. use of organizational resources. © McGraw Hill LLC. 29  Allocating Authority Span of Control: The number of subordinates who report directly to a manager. Line Manager: Someone in the direct line or chain of command who has formal authority over people and resources. Staff Manager: Someone responsible for managing a specialist function, such as finance or marketing. © McGraw Hill LLC. 30  Tall and Flat Organizations 1 Tall Organization: Flat Organization: Many levels of authority Fewer levels of authority relative to company size. relative to company size. © McGraw Hill LLC. 31  Tall and Flat Organizations 2 Figure 7.6 © McGraw Hill LLC. 32  Tall and Flat Organizations 3 Figure 7.6 Access the text alternative for these images © McGraw Hill LLC. 33  Centralization and Decentralization of Authority Decentralizing Authority: Giving lower–level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources. © McGraw Hill LLC. 34  Integrating and Coordinating Mechanisms Integrating Mechanisms: Organizing tools that managers can use to increase communication and coordination among functions and divisions. Liaison roles. Task forces. Cross–functional teams. Integrating roles. © McGraw Hill LLC. 35  Types and Examples of Integrating Mechanisms Figure 7.7 Access the text alternative for these images © McGraw Hill LLC. 36  Strategic Alliances 1 Formal agreements that commit two or more companies to exchange or share their resources in order to produce and market a product. © McGraw Hill LLC. 37  Strategic Alliances 2 B2B Network Structure: A series of strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product. Outsource: To use outside suppliers and manufacturers to produce goods and services. © McGraw Hill LLC. 38  Strategic Alliances 3 Boundaryless Organization: An organization whose members are linked by computers, email, computer–aided design systems, video– conferencing and cloud–based software, and who, rarely, if ever, see one another face–to–ace. © McGraw Hill LLC. 39  Strategic Alliances 4 Knowledge Management System: A company–specific virtual information system that systematizes the knowledge of its employees and facilitates the sharing and integration of their expertise. © McGraw Hill LLC. 40  Topics for Discussion: Boundaryless Organizations During the global pandemic, technology, such as videoconferencing, allowed whole organizations to operate from home, leading to a resistance to return to the office. What are the pros and cons of managers working away from the organization? [LO 7–5] © McGraw Hill LLC. 41  Be The Manager Discuss ways in which you can improve how the current functional structure operates so that it speeds website development. © McGraw Hill LLC. 42  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Because learning changes everything.® Chapter 8 Organizational Control and Change © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1 1. Define organizational control, and explain how it increases organizational effectiveness. 2. Describe the four steps in the control process and the way it operates over time. 3. Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees. 4. Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees. © McGraw Hill LLC. 53  Learning Objectives 2 5. Explain how organizational culture or clan control creates an effective organizational architecture. 6. Discuss the relationship between organizational control and change and explain why managing change is a vital management task. © McGraw Hill LLC. 54  What Is Organizational Control? Controlling: Process where managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals. © McGraw Hill LLC. 55  Control Systems and Technology Control Systems: Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about how well the organization’s strategy and structure are working. © McGraw Hill LLC. 56  Topics for Discussion: Organizing and Controlling What is the relationship between organizing and controlling? [LO 8-1] © McGraw Hill LLC. 57  Control Systems A good control system should: Be flexible so managers can respond as needed. Provide accurate information about the organization. Provide information in a timely manner. © McGraw Hill LLC. 58  Three Types of Control Figure 8.1 Access the text alternative for slide images. © McGraw Hill LLC. 59  Types of Control Feedforward Control: Control that allows managers to anticipate problems before they arise. Concurrent Control: Give managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise. © McGraw Hill LLC. 60  Four Steps in Organizational Control Figure 8.2 Access the text alternative for slide images. © McGraw Hill LLC. 61  Topics for Discussion: Controls What kind of controls would you expect to find most used in (a) a hospital, (b) the navy, (c) a city police force? Why? [LO 8-1, 8-2, 8-3] © McGraw Hill LLC. 62  Three Organizational Control Systems Figure 8.3 Type of control: Mechanisms of control: Output control: Financial measures of performance. Organizational goals. Operating budgets. Behavior control: Direct supervision. Management by objectives Rules and standard operating procedures Organizational Values. culture/clan control: Norms. Socialization. © McGraw Hill LLC. 63  Financial Measures of Performance 1 Profit Ratios: Measures of how efficiently managers convert resources into profits. Return on investment (ROI). Liquidity Ratios: Measures of how well managers protect resources to meet short term debt— current and quick ratios. net profit before taxes current assets Return on investment = Current ratio = total assets current liabilities sales revenues − cost of goods sold current assets − inventory Gross profit margin = Quick ratio = sales revenues current liabilities © McGraw Hill LLC. 64  Financial Measures of Performance 2 Leverage Ratios: Measures of how much debt or equity is used to finance operations: debt–to– asset and times–covered ratios. Activity Ratios: Measures of how efficiently managers are creating value from assets: inventory turnover, days sales outstanding ratios. total debt cost of goods sold Debt-to-assets ratio = Inventory turnover = total assets inventory current accounts receivable profit before interest and taxes Days sales outstanding = Times-covered ratio = sales for period total interest charges divided by days in period © McGraw Hill LLC. 65  Organizational Goals Goals should be specific and difficult but attainable. Stretch Goals: Goals that challenge and stretch managers’ ability but are not out of reach and do not require an impossibly high expenditure of managerial time and energy. © McGraw Hill LLC. 66  Organization wide Goal Setting Figure 8.4 Access the text alternative for slide images. © McGraw Hill LLC. 67  Operating Budgets 1 Operating Budget: A blueprint that states how managers intend to allocate and use the resources they control to attain organizational goals effectively and efficiently. Lower-level managers are evaluated for their ability to stay within the budget and to make the best use of available resources. © McGraw Hill LLC. 68  Operating Budgets 2 Three components are the essence of effective output control: 1. Objective financial measures. 2. Challenging goals and performance standards. 3. Appropriate operating budgets. © McGraw Hill LLC. 69  Problems with Output Control Managers must create output standards that motivate at all levels. Standards should not cause managers to behave in inappropriate ways to achieve organizational goals. © McGraw Hill LLC. 70  Behavior Control 1 Direct Supervision involves managers who: Actively monitor and observe the behavior of their subordinates. Teach subordinates the behaviors that are appropriate and inappropriate. Intervene to take corrective action as needed. © McGraw Hill LLC. 71  Behavior Control 2 Management by Objectives (MBO): A goal-setting process in which managers and each of his or her subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate the extent to which the subordinate is achieving those goals. The Balanced Scorecard Four measures to look at overall performance: financial, customer service, internal business processes, and organizations capability for strategic learning and growth. © McGraw Hill LLC. 72  Management by Objectives 1. Specific goals and objectives are established at each level of the organization. 2. Managers and their subordinates together determine the subordinates’ goals. 3. Managers and their subordinates periodically review the subordinates’ progress toward meeting goals. © McGraw Hill LLC. 73  Topics For Discussion: Output and behavior control How do output control and behavior control differ? [LO 8-1, 8-2, 8-3] © McGraw Hill LLC. 74  Behavior Control 3 Bureaucratic Control: Control of behavior by means of a comprehensive system of rules and standard operating procedures. © McGraw Hill LLC. 75  Bureaucratic Control Problems with bureaucratic control: Rules easier to make than to discard, leading to bureaucratic “red tape” and slowing organizational reaction times to problems. Loss of flexibility, new ideas, and creative problem solving. © McGraw Hill LLC. 76  Topics for Discussion: Organizational Culture What is organizational culture, and how does it affect the way employees behave? [LO 8-4] © McGraw Hill LLC. 77  Organizational Culture and Clan Control 1 Organizational Culture: The shared set of beliefs, expectations, values, norms, and work routines that influences how members of an organization relate to one another and work together to achieve organizational goals. © McGraw Hill LLC. 78  Organizational Culture and Clan Control 2 Clan Control: Control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations. © McGraw Hill LLC. 79  Adaptive versus Inert Culture Adaptive Culture: Inert Culture: Culture whose values and Culture that leads to norms help an values and norms that fail organization to build to motivate or inspire momentum and to grow employees. and change as needed to Leads to stagnation and achieve its goals and be often failure over time. effective. © McGraw Hill LLC. 80  Organizational Control and Change Figure 8.5 Access the text alternative for slide images. © McGraw Hill LLC. 81  Organizational Change Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness. © McGraw Hill LLC. 82  Lewin’s Force-Field Theory of Change Two forces are always in opposition. When they are even, inertia. For change, managers must increase the forces for change or reduce resistance to change. Lewin’s 3 stages of change: Unfreezing. Changing. Refreezing. © McGraw Hill LLC. 83  Four Steps in the Organizational Change Process Figure 8.6 Access the text alternative for slide images. © McGraw Hill LLC. 84  Assessing the Need for Change Organizational Learning: Process through which managers try to increase organizational members’ abilities to understand and appropriately respond to changing conditions. Impetus for change. Can help members make decisions about changes. © McGraw Hill LLC. 85  Implementing Change Top-Down Change: A fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do, and then move quickly to implement changes throughout the organization. Bottom-Up Change: A gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change. © McGraw Hill LLC. 86  Topics For Discussion: Control Process Why is it important for managers to involve subordinates in the control process? [LO 8-3, 8-4] © McGraw Hill LLC. 87  Evaluating Change Benchmarking: Process of comparing one company’s performance on specific dimensions with the performance of other high performing organizations. © McGraw Hill LLC. 88  Be The Manager What kind of output controls will best facilitate positive interactions both within the teams and among the teams? © McGraw Hill LLC. 89  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Because learning changes everything.® Chapter 9 Motivation © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1 1. Explain what motivation is and why managers need to be concerned about it. 2. Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce. 3. Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance. 4. Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory. 5. Explain why and how managers can use pay as a major motivation tool. © McGraw Hill LLC. 98  The Nature of Motivation 1 Motivation: The psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence. © McGraw Hill LLC. 99  The Nature of Motivation 2 Direction: Possible behaviors an individual could engage in. Effort: How hard an individual will work. Persistence: Whether an individual will keep trying or give up. © McGraw Hill LLC. 100  The Nature of Motivation 3 Intrinsically Motivated Behavior: Behavior that is performed for its own sake. Extrinsically Motivated Behavior: Behavior that is performed to acquire material or social rewards or to avoid punishment. Prosocially Motivated behavior: Behavior performed to benefit or help others. © McGraw Hill LLC. 101  The Nature of Motivation 4 Outcome: Input: Anything a person gets Anything a person from a job or an contributes to their organization. organization. Pay, job security, Time, effort, skills, autonomy, knowledge, work accomplishment. behaviors. © McGraw Hill LLC. 102  The Motivation Equation Figure 9.1 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 103  Expectancy Theory The theory that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes. © McGraw Hill LLC. 104  Expectancy Theory 1 Expectancy: A perception about the extent to which effort will result in a certain level of performance. Instrumentality: A perception about the extent to which performance results in the attainment of outcomes. Valence: How desirable each of the available outcomes from a job or organization is to a person. © McGraw Hill LLC. 105  Topics For Discussion: Expectancy Discuss why two people with similar abilities may have very different expectancies for performing at a high level. [LO 9-2] © McGraw Hill LLC. 106  Expectancy, Instrumentality, and Valence Figure 9.2 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 107  Topics For Discussion: Instrumentalities Describe why some people have low instrumentalities even when their managers distribute outcomes based on performance. [LO 9-2] © McGraw Hill LLC. 108  Expectancy Theory 2 Figure 9.3 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 109  Need Theories Need: Need Theories: A requirement or Theories of motivation that necessity for survival and focus on what needs well-being. people are trying to satisfy at work and what outcomes will satisfy those needs. © McGraw Hill LLC. 110  Maslow’s Hierarchy of Needs Level Needs Description Examples of How Managers Can Help People Satisfy These Needs at Work Highest-level needs. Self-actualization needs. The needs to realize one’s Giving people the opportunity full potential as a human to use their skills and abilities being. to the fullest extent possible. Next to highest-level needs. Esteem needs. The needs to feel good about Granting promotions and oneself and one’s recognizing capabilities, to be respected accomplishments. by others, and to receive recognition and appreciation. Medium-level needs. Belongingness needs. Needs to social interaction, Promoting good friendship, affection, and interpersonal relations and love. organizing social functions such as company picnics and holiday parties. Next to lowest-level needs. Safety needs. Needs for security, stability, Providing job security, and a safe environment. adequate medical benefits, and safe working conditions. Lowest-level needs (most Physiological needs. Basic needs for things such Providing a level of pay that basic or compelling). as food, water, and shelter enables a person to buy food that must be met in order for and clothing and have a person to survive. adequate housing. © McGraw Hill LLC. 111  Herzberg’s Motivation-Hygiene Theory 1 A need theory that distinguishes between motivator needs (related to the nature of the work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that motivator needs must be met for motivation and job satisfaction to be high. © McGraw Hill LLC. 112  Herzberg’s Motivation-Hygiene Theory 2 Motivator needs relate to the nature of the work itself and how challenging it is. Hygiene needs are related to the physical and psychological context in which the work is performed. © McGraw Hill LLC. 113  McClelland’s Needs for Achievement, Affiliation, and Power 1 Need for Achievement: A strong desire to perform challenging tasks well and meet personal standards for excellence. © McGraw Hill LLC. 114  McClelland’s Needs for Achievement, Affiliation, and Power 2 Need for Affiliation: Extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around them get along with each other. Need for Power: Extent to which an individual desires to control or influence others. © McGraw Hill LLC. 115  Equity Theory 1 A theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs. © McGraw Hill LLC. 116  Equity Theory 2 Equity: Justice, impartiality, and fairness to which all organizational members are entitled. Inequity: Lack of fairness. © McGraw Hill LLC. 117  Equity Theory 3 Table 9.2 Condition Person Referent Example Equity Outcomes ÷ = Outcomes An engineer perceives that he Inputs ÷ Inputs conditions more inputs (time and effort) and receives proportionally more outcomes (a higher salary and choice job assignments) than his referent. Underpayment Outcomes ÷ < Outcomes An engineer perceives that he inequity Inputs ÷ Inputs contributes more inputs but receives the same outcomes as his referent. Overpayment Outcomes ÷ > Outcomes An engineer perceives that he inequity Inputs ÷ Inputs contributes the same inputs but receives more outcomes than his referent. © McGraw Hill LLC. 118  Equity Theory 4 Underpayment Inequity: Exists when a person perceives that his or her own outcome–input ratio is less than the ratio of a referent. Overpayment Inequity: Exists when a person perceives that his own outcome– input ratio is greater than the ratio of a referent. © McGraw Hill LLC. 119  Topics For Discussion: Equity Theory Analyze how professors try to promote equity to motivate students. [LO 9-2] © McGraw Hill LLC. 120  Equity and Justice in Organizations 1 Distributive Justice: Procedural Justice: A person’s perception of A person’s perception of the fairness of the the fairness of the distribution of outcomes in procedures that are used an organization. to determine how to distribute outcomes in an organization. © McGraw Hill LLC. 121  Equity and Justice in Organizations 2 Interpersonal Justice: Informational Justice: A person’s perception of A person’s perception of the fairness of the the extent to which their interpersonal treatment he manager provides or she receives from explanations for decisions whoever distributes and the procedures used outcomes to them. to arrive at them. © McGraw Hill LLC. 122  Goal-Setting Theory Focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects. © McGraw Hill LLC. 123  Topics For Discussion: Goals Describe three techniques or procedures that managers can use to determine whether a goal is difficult. [LO 9-3] © McGraw Hill LLC. 124  Learning Theories 1 Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals. © McGraw Hill LLC. 125  Learning Theories 2 Learning: A relatively permanent change in person’s knowledge or behavior that results from practice or experience. © McGraw Hill LLC. 126  Operant Conditioning Theory 1 Operant Conditioning: People learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences. © McGraw Hill LLC. 127  Operant Conditioning Theory 2 Positive Reinforcement: Negative Reinforcement: Giving people outcomes Eliminating undesired they desire when they outcomes when people perform organizationally perform organizationally functional behaviors. functional behaviors. © McGraw Hill LLC. 128  Operant Conditioning Theory 3 Extinction: Curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing them. Punishment: Administering an undesired or negative consequence when dysfunctional behavior occurs. © McGraw Hill LLC. 129  Topics For Discussion: Positive Reinforcement Discuss why managers should always try to use positive reinforcement instead of negative reinforcement. [LO 9-4] © McGraw Hill LLC. 130  Social Learning Theory 1 Social Learning Theory: A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior. © McGraw Hill LLC. 131  Social Learning Theory 2 Vicarious Learning: Learning that occurs when a learner is motivated to perform a behavior by watching another person perform and be reinforced for doing so. Also called observational learning. © McGraw Hill LLC. 132  Social Learning Theory 3 Self-Reinforcer: Self-Efficacy: Any desired or attractive A person’s belief about outcome or award that a their ability to perform a person can give behavior successfully. themselves or for good performance. © McGraw Hill LLC. 133  Pay and Motivation 1 Pay as a Motivator— Expectancy: Instrumentality, the association between performance and outcomes (such as pay), must be high for motivation to be high. Need Theory: Pay is used to satisfy many needs. Equity Theory: Pay is given in relation to inputs. © McGraw Hill LLC. 134  Pay and Motivation 2 Pay as a Motivator— Goal-Setting Theory: Pay is linked to attainment of goals. Learning Theory: Outcomes (pay), is distributed upon performance of functional behaviors. © McGraw Hill LLC. 135  Merit Pay and Performance Merit Pay Plan: A compensation plan that bases pay on performance. © McGraw Hill LLC. 136  Salary Increase or Bonus? Employee Stock Option: A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period of time or under certain conditions. © McGraw Hill LLC. 137  Examples of Merit Pay Plans 1 Piece-Rate Pay: Employee’s pay is based on the number of units that the employee produces. Commission Pay: Employee’s pay is based on a percentage of sales that the employee makes. © McGraw Hill LLC. 138  Examples of Merit Pay Plans 2 Scanlon Plan: Focuses on reducing expenses or cutting costs. Profit Sharing: A share of an organization’s profits. © McGraw Hill LLC. 139  Be The Manager What are you going to do about getting the analysts to submit their reports on time and in good shape? © McGraw Hill LLC. 140  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Because learning changes everything.® Chapter 10 Leaders and Leadership © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1 1. Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders. 2. Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership. 3. Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations. 4. Describe what transformational leadership is and explain how managers can engage in it. 5. Characterize the relationship between gender and leadership and explain how emotional intelligence may contribute to leadership effectiveness. © McGraw Hill LLC. 147  The Nature of Leadership 1 Leadership: The process by which a person exerts influence over other people and inspires, motivates and directs their activities to help achieve group or organizational goals. © McGraw Hill LLC. 148  The Nature of Leadership 2 Leader: An individual who exerts influence over other people to help achieve group or organizational goals. © McGraw Hill LLC. 149  The Nature of Leadership 3 Personal Leadership Style: The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management. The challenge is for managers at all levels to develop an effective personal management style. © McGraw Hill LLC. 150  The Nature of Leadership 4 Servant Leader: Leader who has a strong desire to serve and work for the benefit of others. Shares power with followers. Strives to ensure that followers’ most important needs are met. © McGraw Hill LLC. 151  Leadership Styles Across Cultures Leadership styles may vary among different countries or cultures. European managers tend to be more people-oriented than American or Japanese managers. Japanese managers are group-oriented. U.S. managers focus more on short-term profitability. Time horizons also are affected by cultures. © McGraw Hill LLC. 152  Types of Managerial Power Figure 10.1 © McGraw Hill LLC. 153  Power: The Key to Leadership 1 Legitimate Power: Reward Power: The authority that a The ability of a manager manager has by virtue of to give or withhold his or her position in an tangible and intangible organizational hierarchy. rewards. © McGraw Hill LLC. 154  Power: The Key to Leadership 2 Coercive Power: Expert Power: The ability of a manager Power that is based on to punish others. special knowledge, skills, and expertise that a leader possesses. © McGraw Hill LLC. 155  Power: The Key to Leadership 3 Referent Power: Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty. © McGraw Hill LLC. 156  Topics For Discussion: Effective Leaders Describe the steps managers can take to increase their power and ability to be effective leaders. [LO 10-1] © McGraw Hill LLC. 157  Empowerment: An Ingredient in Modern Management 1 Empowerment gives employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs. © McGraw Hill LLC. 158  Empowerment: An Ingredient in Modern Management 2 Empowerment: Increases a manager’s ability to get things done. Increases workers’ involvement, motivation, and commitment. Gives managers more time to concentrate on their pressing concerns. © McGraw Hill LLC. 159  Trait and Behavior Models of Leadership Trait Model: This model focuses on identifying personal characteristics that cause effective leadership. Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits. © McGraw Hill LLC. 160  The Behavior Model 1 Identifies the two basic types of behavior that many leaders engage in to influence their subordinates: consideration and initiating structure. © McGraw Hill LLC. 161  The Behavior Model 2 Consideration: Initiating Structure: Behavior indicating that a Behavior that managers manager trusts, respects, engage in to ensure that and cares about work gets done, subordinates. subordinates perform their jobs acceptably, and the organization is efficient and effective. © McGraw Hill LLC. 162  Topics For Discussion: Behavior Model Think of specific situations in which it might be especially important for a manager to engage in consideration and initiating structure. [LO 10-2] © McGraw Hill LLC. 163  Contingency Models of Leadership 1 Contingency Models: Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he or she does, and the situation in which leadership takes place. © McGraw Hill LLC. 164  Contingency Models of Leadership 2 Fiedler’s Model: Personal characteristics can influence leader effectiveness. Leader style is the manager’s characteristic approach to leadership. © McGraw Hill LLC. 165  Topics For Discussion: Leadership Behavior Discuss why managers might want to change the behaviors they engage in, given their situation, their subordinates, and the nature of the work being done. Do you think managers are able to readily change their leadership behaviors? Why or why not? [LO 10-3] © McGraw Hill LLC. 166  Contingency Models of Leadership 3 Relationship-Oriented Task-Oriented Leaders: Leaders: Leaders whose primary Leaders whose primary concern is to ensure that concern is to develop subordinates perform at a good relations with their high level and focus on subordinates and to be task accomplishment. liked by them. © McGraw Hill LLC. 167  Fiedler’s Model 1 Leader–Member Relations: The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading. Task Structure: The extent to which work is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it. © McGraw Hill LLC. 168  Fiedler’s Model 2 Position Power: The amount of legitimate, reward, and coercive power leaders have by virtue of their position. Leadership situations more favorable for leading when position power is strong. © McGraw Hill LLC. 169  Fiedler’s Contingency Theory of Leadership Figure 10.2 Access the text alternative for slide images. © McGraw Hill LLC. 170  House’s Path-Goal Theory 1 Path-Goal Theory states that effective leaders motivate subordinates to achieve goals by: Clearly identifying the outcomes that subordinates are trying to obtain. Rewarding workers with these outcomes for high- performance and goal attainment. Clarifying the paths to the attainment of the goals. © McGraw Hill LLC. 171  House’s Path-Goal Theory 2 Directive Behaviors: Supportive Behavior: Setting goals, assigning Expressing concern for tasks, showing subordinates and looking subordinates how to out for their best interests. complete tasks, and taking concrete steps to improve performance. © McGraw Hill LLC. 172  House’s Path-Goal Theory 3 Participative Behavior: Giving subordinates a say in matters that affect them. Achievement-Oriented Behavior: Setting very challenging goals, believing in workers’ abilities. © McGraw Hill LLC. 173  Topics For Discussion: Substitutes for Leadership Discuss why substitutes for leadership can contribute to organizational effectiveness. [LO 10-3] © McGraw Hill LLC. 174  The Leader Substitutes Model 1 A characteristic of a subordinate or characteristic of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary. © McGraw Hill LLC. 175  The Leader Substitutes Model 2 Possible substitutes can be found in: Characteristics of the subordinates: Skills, experience, motivation. Characteristics of context: The extent to which work is interesting and fun. © McGraw Hill LLC. 176  Transformational Leadership Makes subordinates aware of the importance of their jobs and performance to the organization. Makes subordinates aware of their own needs for personal growth and development. Motivates workers to work for the good of the organization, not just themselves. © McGraw Hill LLC. 177  Topics For Discussion: Transformational Leadership Describe what transformational leadership is and explain how managers can engage in it. [LO 10-4] © McGraw Hill LLC. 178  Being a Charismatic Leader Charismatic Leader: An enthusiastic, self-confident transformational leader who is able to clearly communicate his or her vision of how good things could be. © McGraw Hill LLC. 179  Stimulating Employees Intellectually Intellectual Stimulation: Behavior a leader engages in to make followers be aware of problems and view these problems in new ways, consistent with the leader’s vision. © McGraw Hill LLC. 180  Engaging in Developmental Consideration Developmental Consideration: Behavior a leader engages in to support and encourage followers and help them develop and grow on the job. © McGraw Hill LLC. 181  Transactional Leadership Transactional leaders motivate subordinates by rewarding them for high performance and reprimanding them for low performance. © McGraw Hill LLC. 182  Gender and Leadership The number of women managers is rising but is still relatively low in the top levels of management. Despite stereotypes, managers of any gender behave in similar ways. But perhaps women are more participative as leaders than men. © McGraw Hill LLC. 183  Emotional Intelligence and Leadership 1 The Moods of Leaders: Groups whose leaders experienced positive moods had better coordination. Groups whose leaders experienced negative moods exerted more effort. © McGraw Hill LLC. 184  Emotional Intelligence and Leadership 2 Emotional Intelligence: Helps leaders develop a vision for their firm. Helps motivate subordinates to commit to the vision. Energizes subordinates to work to achieve the vision. © McGraw Hill LLC. 185  Topics For Discussion: Managing Workers Imagine that, upon graduation, you are working in an organization in an entry-level position and have come up with what you think is a great idea for improving a critical process in the organization that relates to your job. In what ways might your supervisor encourage you to implement your idea? How might your supervisor discourage you from even sharing your idea with others? [LO 10-4, 10-5] © McGraw Hill LLC. 186  Be The Manager What are you going to do to improve the performance and effectiveness of your company? © McGraw Hill LLC. 187  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Because learning changes everything.® Chapter 12 Building and Managing Human Resources © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1 1. Explain why strategic human resource management can help an organization gain a competitive advantage. 2. Describe the steps managers take to recruit and select organizational members. 3. Discuss the training and development options that ensure organization members can effectively perform their jobs. © McGraw Hill LLC. 2  Learning Objectives 2 4. Explain why performance appraisal and feedback are such crucial activities and list the choices managers must make in designing effective performance appraisal and feedback procedures. 5. Explain the issues managers face in determining levels of pay and benefits. 6. Understand the role that labor relations play in the effective management of human resources. © McGraw Hill LLC. 3  Strategic Human Resource Management 1 Human Resource Management (HRM) Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals. © McGraw Hill LLC. David Lees/Digital Vision/Getty Images 4  Strategic Human Resource Management 2 The process by which managers design the components of a human resource management (HRM) system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals. © McGraw Hill LLC. 195  Topics For Discussion: Strategies and Goals Discuss why it is important for human resources management systems to be in sync with an organization's strategy and goals and with each other. [LO 12-1] © McGraw Hill LLC. 196  Components of a Human Resource Management System Figure 12.1 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 7  The Legal Environment of HRM 1 Equal Employment Opportunity (EEO): The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities. Equal Employment Opportunity Commission (EEOC) enforces employment laws. © McGraw Hill LLC. 198  The Legal Environment of HRM 2 Contemporary challenges for managers: How to eliminate sexual harassment. How to make accommodations for employees with disabilities. How to deal with employees who have an addiction. How to manage HIV-positive employees and employees with AIDs. © McGraw Hill LLC. 199  Major EEO Laws Table 12.1 Major Equal Employment Opportunity Laws Affecting HRM Year Law Description (Affecting Human Resources Management) 1963 Equal Pay Act. Requires that men and women be paid equally if they are performing equal work. 1964 Title VII of the Civil Rights Act. Prohibits employment discrimination on the basis of race, religion, sex, color, or national origin; covers a wide range of employment decisions, including hiring, firing, pay, promotion, and working conditions. 1967 Age Discrimination in Employment Act. Prohibits discrimination against workers over the age of 40 and restricts mandatory retirement. 1978 Pregnancy Discrimination Act. Prohibits employment discrimination against women on the basis of pregnancy, childbirth, and related medical decisions. 1990 Americans with Disabilities Act. Prohibits employment discrimination against individuals with disabilities and requires that employers make accommodations for such workers to enable them to perform their jobs. 1991 Civil Rights Act. Prohibits discriminations (as does Title VII) and allows the awarding of punitive and compensatory damages, in addition to back pay in cases of international discrimination. 1993 Family and Medical Leave Act. Requires that employers provide 12 weeks of unpaid leave for medical and family reasons, including paternity and illness of a family member. © McGraw Hill LLC. 200  Recruitment and Selection Recruitment: Activities that managers engage in to develop a pool of qualified candidates for open positions. Selection: The process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job. © McGraw Hill LLC. 201  The Recruitment and Selection System Figure 12.2 © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 12  Human Resource Planning 1 Human Resource Planning (HRP): Activities that managers engage in to forecast their current and future needs for human resources. Consider supply and demand forecasts. © McGraw Hill LLC. 13  Human Resource Planning 2 Outsource: To use outside suppliers and manufacturers to produce goods and services. Use of contract workers rather than hiring them. Two reasons why human resource planning sometimes leads managers to outsource are flexibility and cost. © McGraw Hill LLC. 204  Job Analysis 1 The analysis identifies the tasks, duties, and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job. The analysis should be done for each job in the organization. © McGraw Hill LLC. 205  Job Analysis 2 Job analysis methods include: Observing what current workers do. Having workers and managers fill out questionnaires. © McGraw Hill LLC. 206  Recruitment 1 External Recruiting: Looking outside the organization for people who have not worked at the firm previously. Newspapers advertisements, open houses, on-campus recruiting, and the Internet. © McGraw Hill LLC. 207  Recruitment 2 Internal Recruiting: Managers turn to existing employees to fill open positions. Benefits of internal recruiting: Internal applicants are already familiar with the organization. Managers already know candidates. Can help boost levels of employee motivation and morale. © McGraw Hill LLC. 208  Recruitment 3 Lateral Move: Job change that entails no major changes in responsibility or authority levels. © McGraw Hill LLC. 19  Selection Tools Figure 12.3 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 20  The Selection Process Selection Process: Managers find out whether each applicant is qualified for the position and likely to be a good performer. © McGraw Hill LLC. 211  Reliability and Validity Reliability: The degree to which the tool or test measures the same thing each time it is used. Validity: The degree to which a tool or test measures what it is supposed to measure. © McGraw Hill LLC. 212  Training and Development 1 Training: Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers. Development: Building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges. © McGraw Hill LLC. 213  Topics for Discussion: Training and Development Discuss why training and development are ongoing activities for all organizations. [LO 12-3] © McGraw Hill LLC. 214  Training and Development 2 Needs Assessment: An assessment of which employees need training or development and what type of skills or knowledge they need to acquire. © McGraw Hill LLC. 215  Types of Training Classroom Instruction: Employees acquire skills in a classroom setting. Includes use of videos, role-playing, and simulations. On-the-Job Training: Training that takes place in the work setting as employees perform their job tasks. © McGraw Hill LLC. 26  Types of Development Varied Work Experiences: Top managers need to develop an understanding of, and expertise in, a variety of functions, products and services, and markets. Formal Education: College courses. Tuition reimbursement is common for managers taking classes for MBA or job-related degrees. © McGraw Hill LLC. 217  Topics for Discussion: Development Activities Describe the type of development activities that you think middle managers are most in need of. [LO 12-3] © McGraw Hill LLC. 218  Training and Development 3 Figure 12.4 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 29  Performance Appraisal and Feedback Performance Appraisal: The evaluation of employees’ job performance and contributions to their organization. Traits, behaviors, results. Objective and subjective appraisals. © McGraw Hill LLC. 30  Who Appraises Performance? 1 Figure 12.5 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 31  Who Appraises Performance? 2 360-Degree Appraisal: Performance appraisal by peers, subordinates, superiors, and sometimes clients who are in a position to evaluate a manager’s performance. © McGraw Hill LLC. 222  Topics for Discussion: 360-Degree Performance and Feedback Evaluate the pros and cons of 360-degree performance appraisals and feedback. Would you like your performance to be appraised in this manner? Why or why not? [LO 12-4] © McGraw Hill LLC. 223  Effective Performance Feedback Formal Appraisals: An appraisal conducted at a set time during the year and based on performance dimensions and measures that were specified in advance. Informal Appraisals: An unscheduled appraisal of ongoing progress and areas for improvement. © McGraw Hill LLC. 224  Effective Feedback Tips 1 Be specific and focus on behaviors or outcomes that are correctable and within a worker’s ability to improve. Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing. Express confidence in a subordinate’s ability to improve. Provide performance feedback both formally and informally. © McGraw Hill LLC. 225  Effective Feedback Tips 2 Praise instances of high performance and areas of a job in which a worker excels. Avoid personal criticisms and treat subordinates with respect. Agree to a timetable for performance improvements. © McGraw Hill LLC. 226  Pay and Benefits 1 Pay: Includes employees’ base salaries, pay raises, and bonuses. Determined by characteristics of the organization, the job, and levels of performance. Benefits are based on membership in an organization. © McGraw Hill LLC. 227  Pay and Benefits 2 Pay Level: The relative position of an organization’s pay incentives in comparison with those of other organizations in the same industry employing similar kinds of workers. © McGraw Hill LLC. 228  Topics for Discussion: Pay Levels Discuss why two restaurants in the same community might have different pay levels. [LO 12-5] © McGraw Hill LLC. 229  Pay and Benefits 3 Pay Structure: The arrangement of jobs into categories reflecting their relative importance to the organization and its goals, level of skill required, and other characteristics. © McGraw Hill LLC. 230  Pay and Benefits 4 Benefits: Legally required: social security, workers’ compensation, unemployment insurance. Voluntary: health insurance, retirement, day care. Cafeteria-Style Benefit Plan: A plan from which employees can choose the benefits they want. © McGraw Hill LLC. 231  Labor Relations These are the activities managers engage in to ensure they have effective working relationships with the labor unions that represent their employees’ interests. © McGraw Hill LLC. 232  Unions 1 Unions represent worker’s interests to management in organizations. A union might be able to ensure a worker’s interests are fairly represented. © McGraw Hill LLC. 233  Unions 2 Collective Bargaining: Negotiation between labor unions and managers to resolve conflicts and disputes about issues, such as working hours, wages, benefits, working conditions, and job security. © McGraw Hill LLC. 234  Be The Manager What are you going to do? © McGraw Hill LLC. 235  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Because learning changes everything.® Chapter 13 Effective Communication © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives 1. Explain why effective communication helps an organization gain competitive advantage. 2. Describe the communication process. 3. Explain the information richness of communication media available to managers. 4. Describe the communication networks that exist in organizations. 5. Describe important communication skills that managers needs as senders and receivers of messages. © McGraw Hill LLC. 2  Communication and Management Communication: The sharing of information between two or more individuals or groups to reach a common understanding. © McGraw Hill LLC. 3  Importance of Good Communication In order to gain a competitive advantage, managers should: Increase efficiency in new technologies and skills. Improve quality of products and services. Increase responsiveness to customers. Create more innovation through effective communication. © McGraw Hill LLC. 245  The Communication Process 1 Transmission Phase: Information is shared by two or more individuals or groups. Feedback Phase: A common understanding is assured. © McGraw Hill LLC. 5  The Communication Process 2 Sender: Person or group wishing to share information. Message: Information that a sender wants to share. Encoding: Translating a message into understandable symbols or language. Noise: Anything that hampers any stage of the communication process. (anything that disturb) © McGraw Hill LLC. 247  The Communication Process 3 Receiver: Person or group for which a message is intended. Medium: Channel/Pathway through which an encoded message is transmitted to a receiver. (whatsapp,zoom,air) Decoding: Interpreting and trying to make sense of a message.(to understand the meaning) © McGraw Hill LLC. 248  The Communication Process 4 Figure 13.1 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 8  The Communication Process 5 Verbal Communication(oral/text) The encoding of messages into words, either written or spoken. Nonverbal Communication: The encoding of messages by means of facial expressions, body language, and styles of dress. © McGraw Hill LLC. 250  The Dangers of Ineffective Communication Managers spend 80% of their time in communication. Managers should help employees to be good communicators too. Ineffective communication leads to: Poor performance. Loss of competitive advantage. Dangerous situations. Harvard study: When doctors changed communication process during shift changes, risk was reduced risk by 30%. There was a 25% reduction in medical errors when communication was improved. © McGraw Hill LLC. 251  Information Richness and Communication Media Information Richness: The amount of information that a communication medium can carry and the extent to which the medium enables the sender and receiver to reach a common understanding. Managers and their subordinates can become effective communicators by: Selecting an appropriate medium for each message— there is no one “best” medium. Considering information richness. A medium with high richness can carry much more information to aid understanding. © McGraw Hill LLC. 252  The Information Richness of Communication Media 1 Figure 13.2 Access the text alternative for slide images. © McGraw Hill LLC. Copyright © McGraw-Hill Education. Permission required for reproduction or display. 12  The Information Richness of Communication Media 2 Face-to-Face Communication: Has highest information richness.(complicated concept) Can take advantage of verbal and nonverbal signals. Provides for instant feedback. © McGraw Hill LLC. 13  The Information Richness of Communication Media 3 Management by Wandering Around: Face-to-face communication technique in which a manager walks around a work area and talks informally with employees about issues and concerns. © McGraw Hill LLC. 255  Topics for Discussion: Communications Why is face-to-face communication between managers still important in an organization? [LO 13-2, 13-3 ] © McGraw Hill LLC. 256  The Information Richness of Communication Media 4 Spoken Communication Electronically Transmitted. Has the second-highest information richness. Telephone conversations are information rich with tone of voice, sender’s emphasis, and quick feedback, but provide no visual nonverbal cues. © McGraw Hill LLC. 257  The Information Richness of Communication Media 5 Personally Addressed Written Communication: Has a lower richness than the verbal forms of communication but still is directed at a given person. Excellent media for complex messages requesting follow- up actions by receiver. © McGraw Hill LLC. 258  The Information Richness of Communication Media 6 Impersonal Written Communication: Has the lowest information richness. Good for messages to many receivers where little or no feedback is expected (such as newsletters, reports). © McGraw Hill LLC. 259  Impersonal Written Communication 1 Information Overload: A superabundance of information that increases the likelihood that important information is ignored or overlooked, and tangential information receives attention. © McGraw Hill LLC. 260  Impersonal Written Communication 2 Blog: A website on which an individual, group, or organization posts information, commentary, and opinions and to which readers can often respond with their own commentary and opinions. Social Networking Site: A website that enables people to communicate with others with whom they have some common interest or connection. © McGraw Hill LLC. 261  Topics for Discussion: Communication media Which medium (or media) do you think would be appropriate for each of the following kinds of messages a subordinate could receive from their boss: (a) a raise. (b) not receiving a promotion. (c) an error in a report prepared by a subordinate. (d) additional job responsibilities. (e) the schedule for company holidays for the upcoming year? © McGraw Hill LLC. 262  Communication Networks Formal Networks: Organizational chart. Communication also can be informal. Vertical communication: Up and down. Corporate hierarchy. Horizontal communication: Sideways. Communication between employees at same level. © McGraw Hill LLC. 263  Informal Networks Grapevines. Flows quickly, but not always accurately. © McGraw Hill LLC. 23  External Communication Networks Interest-oriented networks: People meet up who share interests. Helpful in: Changing jobs. Recruiting. Locating new suppliers. Finding a job after a layoff. © McGraw Hill LLC. 265  Communication Skills for Managers Table 13.1 Seven Communication Skills for Managers as Senders of Messages Send messages that are clear and complete. Encode messages in symbols that the receiver understands. Select a medium that is appropriate for the message. Use a medium that the receiver monitors. Avoid filtering and information distortion. Ensure that a feedback mechanism is built into messages. Provide accurate information to ensure that misleading rumors are not spread. © McGraw Hill LLC. 266  Communication Skills for Managers as Receivers Pay Attention. Be a Good Listener. Be Empathetic. © McGraw Hill LLC. 267  Be The Manager As an expert in communication, how would you advise Chen? © McGraw Hill LLC. 268  Because learning changes everything. ® www.mheducation.com © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.