Organisational Culture - Chapter 8 PDF

Chapter 8: Organisational Culture Organisational culture - a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behaviour. These values heavily influence employee behaviour and organisational performance. Culture - largely invisible to individu...

Chapter 8: Organisational Culture Organisational culture - a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behaviour. These values heavily influence employee behaviour and organisational performance. Culture - largely invisible to individuals, just like how the sea is invisible to the fish swimming in it. Individuals tend to become more aware of their organisation's culture when they have the opportunity to compare it to that of other organisations. An organisation's culture can be its strongest asset or its biggest liability. Organisations with rare and hard-to-imitate cultures may have a competitive advantage. ​ A survey conducted by the management consulting firm Bain & Company in 2007 showed that worldwide business leaders consider corporate culture to be as important as corporate strategy for business success. ​ Shared values within an organisation may be related to increased performance. ​ Researchers have found a relationship between organisational cultures and company performance in terms of revenues, sales volume, market share, and stock prices. Just like having the "right" culture can be a competitive advantage, having the "wrong" culture can: ​ lead to performance difficulties, ​ cause organisational failure, and ​ prevent the company from changing and taking risks. Organisational culture - a powerful way of controlling and managing employee behaviour, more so than rules and regulations. Levels of Organisational Culture 1.​ Assumptions - at the deepest level, below our awareness, lie basic assumptions. These assumptions are taken for granted and reflect beliefs about human nature and reality. 2.​ Values - at the second level are shared principles, standards, and goals. 3.​ Artefacts - on the surface are the visible, tangible aspects of organisational culture. The artefacts that reflect these values might include: ​ an executive "open door" policy, ​ an office layout that includes open spaces and gathering areas with pool tables, and ​ frequent company picnics. Understanding an organisation's culture starts with observing its artefacts: ​ its physical environment,  ​ employee interactions, ​ company policies, ​ reward systems, and ​ other observable characteristics. The values and assumptions that shape the organisation can be discovered by: ​ observing how employees interact and the choices they make, and ​ enquiring about their beliefs and perceptions regarding what is right and appropriate behaviour. Organisational Culture Profile (OCP) - identifies seven distinct values that can be used to characterise an organisation's culture. Here's a breakdown of these dimensions: 1. Innovative Cultures ​ Characteristics: Flexible, adaptable, and open to experimentation with new ideas. ​ Structure: Often characterised by flat hierarchies where titles and status distinctions are downplayed. 2. Aggressive Cultures ​ Characteristics: Highly competitive, focused on outperforming rivals, and may fall short on corporate social responsibility. ​ Language: May use aggressive language like "we will kill our competition". 3. Outcome-Oriented Cultures ​ Characteristics: Prioritise achievement, results, and action. ​ Focus: Hold employees and managers accountable for success and use systems that reward output. ​ Rewards: Often tie rewards to performance indicators rather than seniority or loyalty. 4. Stable Cultures ​ Characteristics: Predictable, rule-oriented, and bureaucratic. ​ Suitability: Can be effective in stable environments, providing consistent output. ​ Drawbacks: Can hinder quick action and adaptability, making them a poor fit for dynamic environments. 5. People-Oriented Cultures ​ Characteristics: Value fairness, supportiveness, and respect for individual rights. ​ Emphasis: Place a strong emphasis on treating people with respect and dignity.  ​ Benefits: Can contribute to higher employee retention rates. 6. Team-Oriented Cultures ​ Characteristics: Emphasise collaboration and cooperation among employees. ​ Practices: Often use cross-training and team-based training to foster teamwork. 7. Detail-Oriented Cultures ​ Characteristics: Emphasise precision and attention to detail. ​ Advantages: Can be a source of competitive advantage, particularly in industries like hospitality. Strength of Culture - a strong culture is one where organisational members widely share the company's values. ​ Impact: Strong cultures are more likely to influence employee behaviour and thinking. However, they can be an asset or a liability depending on the nature of the shared values. ​ Challenges: Strong cultures can be difficult to change. For instance, Home Depot faced resistance when the CEO attempted to centralise decision-making, leading to employee departures despite improved financial results. ​ Mergers and Acquisitions: Strong cultures can create clashes during mergers and acquisitions. The DaimlerChrysler merger is a prime example, where the distinct engineering culture of Daimler clashed with the sales-driven culture of Chrysler, causing integration challenges. Subcultures and Countercultures ​ Subcultures: Cultures that develop within different departments, branches, or locations of an organisation. They arise from personal characteristics, work conditions, and other factors. It's crucial for managers to understand these subcultures as they can impact workforce behaviours. ​ Countercultures: Shared values and beliefs that directly oppose the broader organisational culture, often forming around a charismatic leader. They may be tolerated if they contribute to organisational effectiveness, but can also be perceived as threats. Creation of Cultures ​ Founder Values and Preferences: The sources highlight the profound influence of founder values on shaping an organisation's culture, particularly in its early stages. Founders' vision, personality, background, and values shape the organisation's initial rules, structure, and hiring decisions. This influence is enduring as the organisation grows and matures..  ​ Industry Demands: While founders play a significant role, the sources also acknowledge the impact of industry characteristics and demands in shaping organisational cultures. Different industries often exhibit cultural similarities due to common regulatory requirements, competitive pressures, and industry norms.​ Maintenance of Cultures ​ Attraction-Selection-Attrition (ASA): This process acts as a self-regulating mechanism, ensuring that individuals who align with the organisation's culture are attracted to, selected by, and retained within the company. ○​ Attraction: Individuals are drawn to organisations where they perceive a good fit with their own values and personality. For instance, individuals with a strong competitive drive might be attracted to organisations with a similar culture. ○​ Selection: Organisations actively seek candidates who align with their cultural values during the hiring process. They may use various techniques, such as multiple interviews with future peers, to assess cultural fit. ○​ Attrition: Employees who don't fit the culture are more likely to leave voluntarily or involuntarily. Research shows that person-organisation misfit is a significant contributor to employee turnover. ​ New Employee Onboarding (Organisational Socialisation): This process helps new employees learn the necessary attitudes, knowledge, skills, and behaviours to function effectively within the organisation. Effective onboarding integrates new employees into the culture, fostering acceptance, confidence, and understanding of shared assumptions, norms, and values. This, in turn, contributes to improved performance, job satisfaction, organisational commitment, and longer tenure.​ ○​ Formal Orientation Programs: These programs introduce new employees to the company's history, goals, culture, and power structure. They can range from structured sessions with lectures and materials to more informal approaches. Research suggests that formal programs are particularly helpful in conveying information about the organisation, although computer-based orientations may not be as effective. ○​ Role of Organisational Insiders: Leaders, coworkers, and mentors play crucial roles in supporting new employee onboarding. Leaders influence how quickly employees grasp company politics and culture, coworkers impact team adjustment, and mentors provide guidance and insights into the company's workings. Mentoring can be formal or informal, and research suggests that programs are more effective when participants have input in matching and mentors receive prior training. ○​ What Employees Can Do: New employees can enhance their onboarding experience by being proactive, seeking feedback, and actively building relationships with colleagues and managers. Seeking feedback early on helps  identify any necessary behavioural adjustments to align with the company culture. Networking is also crucial, especially when the company lacks a structured onboarding approach, as building strong relationships is vital for adjustment and success. ​ Leadership: Leaders play a pivotal role in shaping and maintaining organisational culture. Their leadership style, actions, and reactions send clear signals to employees about the accepted norms and values within the organisation.​ ○​ Role Modelling: Leaders demonstrate desired behaviours and act as examples for employees to emulate. This is particularly important for fostering an ethical culture, as leaders' actions communicate acceptable and unacceptable conduct. ○​ Reactions and Priorities: Leaders' responses to various situations, such as praising achievements, handling mistakes, and addressing conflicts, shape the organisational culture. Their priorities, as evident in their questions, concerns, and reactions, signal what is truly valued in the organisation. ​ Reward Systems: The way an organisation rewards and punishes employees significantly influences its cultural values. The design of reward systems, including the criteria used for evaluation, types of incentives, and recognition mechanisms, reinforces specific behaviours and outcomes, ultimately shaping the culture.​ ○​ Focus on Behaviours or Results: Organisations that reward both intangible behaviours and tangible results tend to develop people- or team-oriented cultures, whereas a sole focus on goal achievement may lead to outcome-oriented and competitive cultures. ○​ Performance vs. Seniority: Rewarding performance over seniority fosters a culture of achievement and meritocracy, while seniority-based rewards can hinder outcome orientation. ○​ Reinforcing Desired Behaviours: The behaviours that are rewarded, punished, or ignored determine the direction of cultural evolution. A well-designed reward system, as part of the controlling function, serves as a powerful tool for shaping and maintaining the desired organisational culture. Steps to Increase the Chances of Success: ​ 1. Creating a Sense of Urgency:​ ○​ Effective culture change initiatives begin by establishing a clear and compelling rationale for the change. Leaders must effectively communicate the need for change to employees, highlighting the negative consequences of maintaining the status quo and emphasising the benefits of embracing a new way of doing things. This sense of urgency helps create buy-in and motivates employees to support the change effort.  ​ 2. Changing Leaders and Other Key Players:​ ○​ Culture change often necessitates changes in leadership, particularly at the top levels of the organisation. Existing leaders, due to their entrenched beliefs, self-interest, or resistance to change, can act as significant barriers. Replacing them with individuals who champion the desired cultural shifts can accelerate the process. ​ 3. Role Modelling:​ ○​ Leaders play a crucial role in demonstrating the desired behaviours and values associated with the new culture. Their actions serve as powerful signals to employees about what is expected and rewarded within the organisation. ​ 4. Training:​ ○​ Targeted training programs play a vital role in equipping employees with the necessary skills and knowledge to align with the new cultural values. These programs help employees understand the new norms, behavioural expectations, and desired ways of working. ​ 5. Changing the Reward System:​ ○​ Modifying the reward system to align with the desired cultural values is crucial for reinforcing the change. The criteria for rewards and punishments send powerful signals to employees about what behaviours and outcomes are valued within the organisation. ​ 6. Creating New Symbols and Stories:​ ○​ Developing new rituals, symbols, and stories that embody the desired cultural values helps communicate and reinforce the change. Replacing outdated symbols and narratives with ones that align with the new culture helps embed the change and create a shared sense of identity. Before You Join: Uncovering the Cultural Landscape ​ Research: The sources stress the importance of thorough research before even stepping into an interview. This research can encompass various avenues: ○​ Networking: Reach out to individuals within your personal and professional networks who may have insights into the company's culture. ○​ Online Resources: Utilise search engines and company websites to gather information about the organisation's mission, values, news articles, and employee reviews. ​ Observe the Physical Environment: Pay close attention to the physical cues during interviews or site visits. ○​ Office Layout: Does the workspace foster collaboration with open layouts, or does it prioritise individual work with private offices?  ○​ Dress Code: What does the attire of employees convey about the level of formality and expectations? ○​ Employee Demeanour: Are employees engaged and energetic, or do they appear stressed and overworked? ​ Read Between the Lines: Look beyond the obvious and interpret subtle cues: ○​ Company Policies: Does the presence or absence of a detailed employee handbook indicate a preference for flexibility or strict adherence to rules? ○​ Communication: Are you treated with respect and kept informed during the recruitment process, or do you experience delays and a lack of communication? ​ Ask Insightful Questions: Prepare thoughtful questions to glean deeper insights into the culture: ○​ Employee Turnover: Enquire about the reasons for the previous incumbent's departure. This can shed light on potential challenges or cultural mismatches. ○​ Success Factors: Ask what qualities and behaviours contribute to success within the organisation. ○​ Ideal Candidate: Understand the company's expectations and the profile of their ideal candidate. ​ Trust Your Instincts: The sources emphasise the importance of listening to your gut feeling. Pay attention to your overall impression of the organisation, the interactions with potential colleagues and managers, and the general atmosphere. If there's a sense of unease or misalignment, it's worth considering whether this is the right cultural fit for you. You've Got the Job! Now, How to Get on Board? ​ Gather Information: ○​ Pre-Start: Before your first day, leverage all available resources to learn as much as you can about the company, the department, your role, and your team. ○​ Active Observation: Once you start, pay attention to how people interact, dress, and behave. Observe communication styles, decision-making processes, and the overall work dynamic. ​ Manage Your First Impression: ○​ Professionalism: Present yourself in a professional manner, adhering to the dress code and demonstrating punctuality and preparedness. ○​ Enthusiasm: Express genuine excitement and a positive attitude towards being part of the team. ○​ Respectful Interactions: Engage in courteous and respectful interactions with colleagues at all levels. ​ Invest in Relationship Development: ○​ Proactive Networking: Initiate conversations, attend social events, and seek opportunities to connect with colleagues.  ○​ Building Rapport: Show genuine interest in your colleagues, listen attentively, and build rapport. Strong relationships contribute significantly to a smoother onboarding experience. ​ Seek Feedback: ○​ Proactive Approach: Don't wait for formal feedback sessions. Actively seek input from your manager and colleagues on your performance and how you can improve. ○​ Receptiveness: Demonstrate openness to feedback and a willingness to learn and adapt. ○​ Follow Through: Act on the suggestions you receive to show that you value feedback and are committed to improvement. ​ Show Success Early On: ○​ Taking Initiative: Volunteer for projects that align with your skills and interests, allowing you to showcase your abilities and contribute meaningfully. ○​ Seeking Learning Opportunities: Embrace projects that may challenge you and expand your knowledge, even if they are not high-profile. ○​ Strategic Networking: Participate in projects that involve collaboration with key individuals within the organisation, expanding your network and visibility. Chapter 10: Leading People and Organizations The following traits demonstrate a strong correlation with leadership: ​ Intelligence: Both general mental ability (IQ) and emotional intelligence (EQ) play a role in leadership. ○​ Individuals with high mental abilities are more likely to be perceived as leaders. ○​ High EQ, characterised by self-awareness, motivation, empathy, and social skills, is also crucial for effective leadership. ​ Personality: Several traits from the Big Five personality framework relate to leadership emergence and effectiveness. ○​ Extraversion, the strongest predictor, is associated with sociability, assertiveness, energy, and self-confidence, making extraverts more likely to emerge as leaders in various situations. ○​ Conscientiousness, marked by organisation, initiative, and persistence, also increases the likelihood of leadership emergence and effectiveness. ○​ Individuals with openness to experience, who are original, creative, and willing to try new things, also tend to emerge as effective leaders. ​ Self-Esteem: Leaders with high self-esteem are more supportive of their subordinates and administer punishment more effectively. High self-esteem may contribute to greater self-confidence and a more charismatic image. ​ Integrity: Effective leaders typically possess a strong moral compass, demonstrating honesty and integrity, which fosters trustworthiness. Conversely, some traits are negatively correlated with leadership: ​ Agreeableness - Individuals who are modest, good-natured, and avoid conflict are less likely to be perceived as leaders. Leader Behaviours ​ Task-Oriented Behaviours: These behaviours, sometimes referred to as initiating structure, involve: ○​ Structuring subordinate roles ○​ Providing clear instructions ○​ Engaging in behaviours that enhance group performance. ​ Task-oriented behaviours are essentially directives aimed at accomplishing tasks and meeting organisational goals.​ ​ People-Oriented Behaviours: Also known as consideration, these behaviours centre around: ○​ Demonstrating concern for employee feelings ○​ Treating employees with respect.  ​ People-oriented leaders genuinely prioritise the well-being of their employees and reflect this concern in their actions and decisions. Impact of Leader Behaviours: ​ People-oriented behaviours tend to foster higher levels of employee satisfaction and more positive employee reactions. ​ Task-oriented behaviours generally lead to slightly higher productivity. Contextual Influences on Leader Behaviours: ​ Task-oriented behaviours have been found to be more effective in smaller companies compared to larger organisations. ​ Excessively high levels of task-oriented behaviours can lead to employee burnout. Leader Decision-Making Styles: ​ Authoritarian Decision Making: The leader makes decisions independently, without necessarily involving employees in the process. ​ Democratic Decision Making: Employees are actively involved in the decision-making process. ​ Laissez-Faire Decision Making: The leader takes a hands-off approach, allowing employees to make decisions with minimal guidance or involvement. Effectiveness of Decision-Making Styles: ​ Democratic decision-making styles are generally associated with: ○​ Higher employee satisfaction. ○​ Weaker effects on decision quality and employee productivity. ○​ Employees valuing the overall participative climate over involvement in every single decision. ​ Employee preferences for decision-making styles can vary: ○​ Scientists in a research organisation preferred democratic leadership over authoritarian leadership. ○​ Employees in large groups with limited interaction opportunities favoured authoritarian leadership. ​ The effectiveness of a decision-making style can also depend on the individual leader's approach and personality. For instance, both authoritarian and democratic styles have been employed by successful leaders. ​ Laissez-faire decision making has been linked to: ○​ Negative employee perceptions of leader effectiveness. ○​ Lower employee satisfaction. ○​ Higher levels of ambiguity about job expectations and increased workplace conflict. Limitations of Behavioural Approaches: ​ Organisational type (e.g., business, military, educational institution) ​ Organisational size ​ Industry qUnderstanding Contingency Approaches to Leadership The limitations of trait and behavioural approaches to leadership, which failed to consider the impact of the environment or context, led to the emergence of contingency approaches. Contingency approaches move away from seeking universal leadership traits or behaviours and instead focus on identifying the situations under which different leadership styles are most effective. Fiedler's Contingency Theory One of the earliest and most influential contingency theories is Fiedler's Contingency Theory. This theory proposes that a leader's effectiveness is determined by the interaction between their leadership style and the favourableness of the situation. Measuring Leadership Style: Fiedler uses the Least Preferred Coworker (LPC) scale to assess leadership style. Individuals taking the LPC survey rate their least preferred coworker on various dimensions, such as friendliness, niceness, and cooperation. ​ High LPC score: Individuals who can describe their least preferred coworker in positive terms are considered people-oriented leaders. They can separate their personal feelings from their ability to work effectively with someone. ​ Low LPC score: Those who view their least preferred coworker negatively are classified as task-oriented leaders. They struggle to separate personal dislike from their ability to work with someone. Fiedler's theory views the LPC score as a relatively stable personality trait. Situational Favourableness: According to Fiedler, a situation's favourableness depends on three factors: 1.​ Leader-subordinate relations: The quality of the relationship between the leader and the group members. 2.​ Position power: The amount of formal authority the leader possesses. 3.​ Task structure: The degree to which tasks are clearly defined and structured. A highly favourable situation would involve good leader-subordinate relations, high position power, and a structured task. Conversely, a highly unfavourable situation would be characterised by poor leader-subordinate relations, low position power, and an unstructured task. Matching Leadership Style to Situation: Fiedler's theory predicts the following: ​ Low LPC (task-oriented) leaders are most effective in highly favourable and highly unfavourable situations. ​ High LPC (people-oriented) leaders are more likely to succeed in situations with moderate favourableness. Evaluation of Fiedler's Theory: Research provides partial support for Fiedler's Contingency Theory. While there is stronger evidence for the effectiveness of low LPC leadership in specific situations, the predictions regarding high LPC leadership have received less support. Despite its limitations, Fiedler's theory made a significant contribution by explicitly acknowledging the importance of context in leadership. It provides a framework for understanding when task-oriented versus people-oriented leadership might be more effective. Situational Leadership Theory Another contingency approach is Situational Leadership Theory (SLT), developed by Kenneth Blanchard and Paul Hersey. SLT posits that leaders should adjust their leadership style based on the developmental level of their followers. Follower Readiness: SLT defines follower readiness as a combination of competence and commitment. The theory identifies four levels of follower readiness: ​ Low competence, high commitment: Followers are enthusiastic but lack the skills to perform effectively. ​ Low competence, low commitment: Followers lack both the skills and the motivation to perform. ​ Moderate to high competence, variable commitment: Followers have developed some skills but may lack confidence or commitment. ​ High competence, high commitment: Followers are highly skilled and motivated to perform. Matching Leadership Style to Follower Readiness: SLT proposes four leadership styles, each aligned with a different follower readiness level:  ​ Directing: Providing specific instructions and close supervision, suitable for followers with low competence and high commitment. ​ Coaching: Combining direction with support and encouragement, appropriate for followers with low competence and low commitment. ​ Supporting: Emphasizing shared decision making and emotional support, beneficial for followers with moderate to high competence and variable commitment. ​ Delegating: Granting followers autonomy and responsibility, ideal for those with high competence and high commitment. SLT in Practice: SLT has been widely adopted in management training programmes, with millions of managers globally receiving SLT training. However, research findings on the theory's effectiveness have been mixed. While SLT provides a straightforward framework for adapting leadership style to follower needs, its overreliance at the expense of other models is not advisable. Path-Goal Theory of Leadership Developed by Robert House, Path-Goal Theory draws on the expectancy theory of motivation. It emphasizes the leader's role in clarifying the path for followers to achieve their goals and ensuring that those goals are aligned with organisational objectives. Core Principles: Path-Goal Theory suggests that employees are motivated when they believe: 1.​ Their effort will result in high performance. 2.​ High performance will be rewarded. 3.​ The rewards are valuable to them. The leader's primary responsibility is to ensure that all three conditions are met. They achieve this by: ​ Removing obstacles that hinder employee performance. ​ Creating a motivating work environment. ​ Linking employee efforts to performance and rewards. Four Leadership Styles: 1.​ Directive: Providing clear instructions, setting schedules, and clarifying expectations. Effective when employees experience role ambiguity or lack clarity about their tasks. 2.​ Supportive: Offering emotional support, treating employees with respect, and demonstrating concern for their well-being. Beneficial when employees face high stress levels or perform repetitive tasks.  3.​ Participative: Involving employees in decision making. Works well with employees who have high ability and when decisions directly affect them. 4.​ Achievement-oriented: Setting challenging goals and encouraging employees to strive for excellence. Most effective with employees who are highly skilled and motivated to achieve. Vroom and Yetton's Normative Decision Model Victor Vroom and his colleagues developed the Normative Decision Model as a tool to guide leaders in determining the optimal level of employee involvement in decision making. This model presents a series of questions that leaders answer to determine the most effective decision-making style for a given situation. Decision-Making Styles: ​ Decide: The leader makes the decision alone. ​ Consult Individually: The leader consults with each team member individually before making the decision. ​ Consult Group: The leader consults with the team as a whole before making the decision. ​ Facilitate: The leader facilitates a group discussion and collaborates with the team to reach a consensus decision. ​ Delegate: The leader delegates the decision to the team. Leadership styles ​ Transformational Leadership: This approach differentiates between transformational and transactional leaders.​ ○​ Transformational leaders align employee goals with their own, encouraging a focus on the company's well-being rather than individual interests. They use charisma, inspirational motivation, intellectual stimulation, and individualised consideration. ○​ Transactional leaders, on the other hand, focus on ensuring employees exhibit desired behaviours through a system of rewards and exceptions. ​ Leader-Member Exchange Theory: This theory posits that the relationship between leaders and their followers is key to understanding leadership influence.​ ○​ High-quality LMX relationships are marked by trust, mutual liking, respect, and a willingness to go beyond the call of duty. ○​ Low-quality LMX relationships involve less trust, liking, and respect, with interactions remaining within formal job description boundaries.  ​ Servant Leadership: This approach defines leadership as serving the needs of others.​ ○​ Servant leaders prioritize employee development, empowerment, and well-being, often placing these above organisational goals. They also demonstrate a strong moral compass and concern for the wider community. ​ Authentic Leadership: Authentic leaders are encouraged to “be yourself”.​ ○​ They possess a deep understanding of their own values and priorities, act in accordance with those values, and demonstrate personal integrity.. Charismatic Leadership Skills ​ Vision: Charismatic leaders communicate a clear, long-term vision that inspires and motivates followers. This involves emphasizing the overarching purpose and explaining why individuals should care about the goals. ​ Connecting to History: Drawing connections between shared history and the future enhances the vision's appeal and resonance. ​ Body Language: Projecting energy, passion, and confidence through body language, including eye contact and a confident posture, strengthens the impact of the message. ​ Building Confidence in Others: Expressing belief in and trust in employees' abilities fosters their confidence and motivation. Addressing any skill gaps through training and mentoring is crucial. ​ Challenging Norms: Charismatic leaders question the status quo and encourage innovative and unconventional solutions to problems. Servant Leadership Skills ​ Focus on Others: Servant leaders prioritize the needs of their employees, aiming to support them and help them achieve their goals. This can involve identifying ways to reduce stress, shield them from excessive pressure, and provide practical assistance. ​ Understanding Individual Goals: Getting to know employees personally and understanding their values, priorities, and aspirations is essential for supporting their growth. ​ Humility: Acknowledging that a leader does not have all the answers and being open to learning from others is vital. Engaging in volunteer work can help cultivate humility. ​ Open Communication: Transparent communication with employees, including asking questions and sharing information about company developments, fosters trust and engagement. ​ Community Engagement: Encouraging employee involvement in community volunteer projects or developing strategies for positive community impact aligns with the servant leader's focus on serving others. Authentic Leadership Skills Authentic leadership emphasizes self-awareness, acting in accordance with one's values, and demonstrating integrity. The chapter suggests a process for developing authentic leadership through: Understanding Your History: ​ Reflecting on significant life events and how they have shaped you as a person. ​ Identifying your childhood role models and the lessons you learned from them. Taking Stock of Who You Are Now: ​ Understanding your personality and its influence on your life. ​ Recognising your strengths and weaknesses and seeking continuous self-improvement. Reflecting on Your Successes and Challenges: ​ Journaling to document challenges and strategies for overcoming them, while tracking progress. Making Integrity a Priority: ​ Identifying your core values. ​ Evaluating whether your actions align with your values and taking steps to ensure consistency. Understanding the Power of Words: ​ Being mindful of the language used to describe people and situations, recognising that words shape perceptions and experiences. For instance, referring to those you manage as "associates" or "team members" can create a more collaborative and positive environment compared to terms like "employees" or "subordinates". Chapter 11: Decision Making ​ Decision-making - making choices among alternative courses of action, including inaction. ​ Decisions can be classified into three categories: ○​ Strategic decisions - these decisions set the course of an organisation. ○​ Tactical Decisions - decisions about how things will get done. ○​ Operational Decisions - decisions that employees make each day to run the organisation. ​ There are two main types of decisions: ○​ Programmed decisions - these occur frequently enough that an automated response is developed. The automated response used for these decisions is called the decision rule. ○​ Non-programmed decisions - decisions that are unique and important require conscious thinking, information gathering, and careful consideration of alternatives. ​ Four decision-making approaches: ○​ Rational Decision-Making Model - describes a series of steps that decision-makers should consider if their goal is to maximize the quality of their outcomes. The steps in this model are: 1.​ Identify the decision to be made. 2.​ Establish decision criteria. 3.​ Weigh decision criteria. 4.​ Generate alternatives. 5.​ Evaluate the alternatives. 6.​ Choose the best alternative. 7.​ Implement the decision. 8.​ Evaluate the decision. ○​ Bounded Rationality Decision-Making Model - this model recognises the limitations of decision-making processes. With this model, individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search for alternatives. An important part of this approach is the tendency to satisfice, which means accepting the first alternative that meets your minimum criteria. ○​ Intuitive Decision-Making Model - this model refers to arriving at decisions without conscious reasoning. The model argues that in a given situation, experts making decisions scan the environment for cues to recognise patterns. They can then play a potential course of action through to its outcome, based on their prior experience.  ○​ Creative Decision-Making Model - this model argues that creativity is the generation of new, imaginative ideas, and this is a vital part of being an effective decision-maker. The five steps to creative decision-making include: 1.​ Problem Identification - the need for problem-solving becomes apparent. 2.​ Immersion - the decision-maker thinks about the problem consciously and gathers information. 3.​ Incubation - the individual sets the problem aside and does not think about it for a while, although their brain is actually working on the problem unconsciously. 4.​ Illumination - the "eureka" moment when the solution becomes apparent, usually when least expected. 5.​ Verification and Application - the decision-maker consciously verifies the feasibility of the solution and implements the decision. Faulty Decision-Making ​ Overconfidence bias occurs when individuals overestimate their ability to predict future events. For example, 82% of drivers surveyed believe they are in the top 30% of safe drivers. To avoid overconfidence bias, it is important to stop and ask yourself whether you are being realistic in your judgements.​ ​ Hindsight bias occurs when looking backward in time, mistakes made seem obvious after they have already occurred. This can be problematic when judging someone else's decisions, as it is important to remember that they may not have had all the information available that you now have.​ ​ Anchoring is the tendency for individuals to rely too heavily on a single piece of information. For example, when making a purchase, customers may anchor on the price of an item while ignoring other important factors, such as quality and features.​ ​ Framing bias occurs when decision-makers are influenced by the way a situation or problem is presented. For example, individuals are more likely to buy meat that is described as "85% lean" than meat described as "15% fat".​ ​ Escalation of commitment happens when individuals continue on a failing course of action after information reveals it may be a poor path to follow. This is sometimes called the sunk costs fallacy because continuing is often based on the idea that they have already invested in this course of action. For example, someone may continue to put money into repairing a used car in the hopes of justifying their initial investment, even though it may be more cost-effective to sell or donate the car.​  There are several reasons why escalation of commitment occurs:​ ○​ Decision-makers do not want to admit they were wrong. ○​ Decision-makers may incorrectly believe that spending more time and energy might help them recover their losses. ​ Decision-makers can avoid escalation of commitment by:​ Setting strict turning back points. ○​ Assigning separate decision-makers for the initial buying and subsequent selling decisions. ○​ Periodically evaluating an initially sound decision to see whether the decision still makes sense. ○​ Creating an organisational climate where individuals do not fear admitting their initial decision no longer makes economic sense. ​ Group Decision-Making Advantages: ○​ Groups can draw from a larger number of individual experiences and perspectives. ○​ Groups can be more creative, leading to more effective decisions. ○​ Groups can make the task more enjoyable. ○​ Implementation of the decision will be easier because group members are invested in the decision. ○​ Diverse groups can make better decisions because different group members may have different ideas based on their backgrounds and experiences. ​ Group Decision-Making Disadvantages: ○​ Groups rarely outperform their best member. ○​ Groups often suffer from process losses, such as coordination problems. ○​ Groups can suffer from social loafing. ○​ Groups can suffer from groupthink. ○​ Group decisions take longer than individual decisions. ​ Groupthink is a phenomenon where group pressure increases the risk of the group making flawed decisions, leading to reduced mental efficiency, reality testing and moral judgement. The eight characteristics of groupthink are: ○​ Illusion of Invulnerability - shared by most or all members of the group, creating excessive optimism and encouraging them to take extreme risks. ○​ Collective Rationalisations - downplaying negative information or warnings that might cause them to reconsider their assumptions. ○​ Unquestioned Belief in Inherent Morality - ignoring ethical or moral consequences of their actions.  ○​ Stereotyped Views of Out-Groups - discounting rivals' abilities to make effective responses. ○​ Direct Pressure - placed on any member who expresses strong arguments against the group's stereotypes, illusions, or commitments. ○​ Self-Censorship - group members minimise their own doubts and counter-arguments. ○​ Illusions of Unanimity - the lack of dissent is viewed as unanimity. ○​ Self-Appointed Mindguards - one or more members protect the group from information that runs counter to the group's assumptions and course of action. ​ Avoiding Groupthink - The sources offer several recommendations for avoiding groupthink, including: ○​ Groups should: ​ Discuss the symptoms of groupthink. ​ Assign a rotating devil's advocate. ​ Invite experts or qualified colleagues to attend meetings. ​ Encourage a culture of difference. ​ Debate ethical implications. ○​ Individuals should: ​ Monitor their own behaviour. ​ Check themselves for self-censorship. ​ Avoid mindguard behaviours. ​ Avoid putting pressure on other members to conform. ​ Remind members of the ground rules for avoiding groupthink. ○​ Group Leaders should: ​ Break the group into sub-groups. ​ Have more than one group work on the same problem. ​ Remain impartial. ​ Encourage critical evaluations. ​ Create an anonymous feedback channel. ​ Tools and Techniques for Better Group Decisions ○​ Nominal Group Technique - all members participate fully by independently and silently writing down ideas, sharing them in turn, discussing and clarifying each idea, then voting on their favourite ideas. ○​ Delphi Technique - a group process using written responses to a series of questionnaires rather than individuals meeting. Questionnaires begin with a broad question and subsequent questionnaires are developed from the information gathered from the previous one. The process ends when the group reaches a consensus.  ○​ Majority Rule - each member of the group gets a single vote and the option with the greatest number of votes is selected. ○​ Consensus - discussing issues, generating a proposal, calling for consensus, and discussing concerns, which are repeated until consensus is reached. ○​ Group Decision Support Systems (GDSS) - interactive computer-based systems that combine communication and decision technologies. These can improve collaborative work through higher information sharing but have the potential to be counterproductive if they become too complicated or fail to take into account human psychology. ○​ Decision Trees - diagrams in which answers to yes or no questions lead decision-makers to address further questions until they reach the end of the tree. Project premortem 1.​ A planning team creates an outline of a plan, such as launching a new product. 2.​ Either the existing group, or a new group, imagines that the plan has failed. They should then note down all the reasons that they can imagine that might have caused this failure. 3.​ Each team member shares items from their list until all the potential problems are identified. 4.​ The list is reviewed for any additional problems. 5.​ The issues are sorted into categories. 6.​ The plan is then revised to correct the flaws and try to avoid these potential problems. Chapter 12: Communication in Organizations The Importance of Communication ​ Communication is the foundation of any successful organisation. It's how we plan, organise, lead, and control - the four key functions of management. ​ Communication is how goals are achieved and actions are coordinated. ​ Effective communication skills are highly sought after by employers. The Communication Process ​ The Process Model of Communication provides a framework for understanding how communication happens. ○​ It starts with a Sender, who has a thought they want to share. ○​ The Sender encodes their thoughts into a Message. ○​ The Message is transmitted via a medium, like spoken or written words, or signs. ○​ The Receiver receives the Message and decodes it, giving it meaning. ​ Noise can disrupt any stage of the communication process. ○​ Noise can be external (distractions in the environment), internal to the Receiver (like their current emotional state), or even internal to the Sender (if they aren't motivated to communicate clearly). ​ As we've seen in our discussion about the printer toner scenario, misinterpretations can easily arise from noise. Three Main Functions of Communication ​ Transmitting information ○​ Essential for an organisation to operate effectively. ○​ For example, a manager informs employees about a new policy. ​ Coordinating effort ○​ Aligns individual efforts towards shared objectives. ○​ For instance, team members discuss their roles and responsibilities for a project. ​ Sharing emotions and feelings ○​ Builds strong teams and unites people, especially during challenging or celebratory times. ○​ A manager might offer words of encouragement to an employee who is struggling, fostering a supportive work environment. Effective Communication: An Asset ​ Good communication helps organisations: ○​ Retain valuable employees.  ○​ Increase market value. ​ Good communicators are valuable employees: ○​ They are likely to be viewed favourably in hiring decisions. ○​ They are likely to receive better performance reviews and have better career prospects. ​ For individuals, effective communication can lead to: ○​ Increased job satisfaction. ○​ Career advancement. ​ Effective communication leads to: ○​ Better understanding of issues. ○​ Stronger relationships between colleagues. ○​ Easier consensus-building. The Importance of Understanding the Communication Process ​ By understanding how communication works, we can make informed choices to ensure our messages are received as intended. ​ We can identify potential sources of noise and take steps to minimize their impact. ​ We can choose the most appropriate communication channel for the message and the situation. ​ We can improve our listening skills to become more effective receivers of information. Filtering - the deliberate distortion or withholding of information, often to manage the reaction of the recipient. ​ Examples: ○​ A manager might choose not to share negative sales figures with their boss for fear of repercussions. ○​ An assistant (acting as a gatekeeper) might selectively pass along information to their superior, withholding potentially upsetting news. ​ Consequences: Filtering prevents a clear and accurate flow of information, hindering effective decision-making and potentially creating a culture of distrust. ​ Mitigating Filtering: ○​ Encourage open communication: Cultivate a work environment where employees feel comfortable sharing information, both positive and negative, without fear of reprisal. Reward transparency. ○​ Use multiple channels: Share information through different mediums, such as emails, meetings, and informal conversations, to reduce the impact of filtering by any single individual.  ○​ Seek information from diverse sources: Don't rely on a single individual or department for information; gather insights from various perspectives to obtain a more comprehensive understanding of the situation. Selective Perception - the process of filtering incoming information based on individual needs and biases, often unconsciously. ​ Explanation: We tend to pay attention to information that aligns with our pre-existing beliefs and expectations, while filtering out information that contradicts them. ​ Consequences: Selective perception can lead to misunderstandings and misinterpretations, as individuals may perceive the same message differently based on their own experiences and perspectives. ​ Example: ○​ An employee who has had negative experiences with micromanaging bosses might interpret a manager's request for frequent updates as a sign of distrust, even if the manager's intention is simply to stay informed. ​ Mitigating Selective Perception: ○​ Seek feedback: Encourage open dialogue and actively solicit feedback to ensure that messages are being understood as intended. ○​ Be mindful of your own biases: Reflect on your own preconceptions and how they might influence your understanding of information. ○​ Consider different perspectives: Actively seek out and consider viewpoints that differ from your own. Information Overload - when the amount of information exceeds an individual's capacity to process it effectively within a given time frame. ​ Causes: ○​ The constant barrage of emails, messages, and notifications. ○​ The increasing volume of data and information available in the digital age. ​ Consequences: ○​ Reduced productivity and efficiency, as individuals struggle to manage the influx of information. ○​ Difficulty in focusing and making sound decisions. ○​ Increased stress and anxiety. ​ Example: ○​ A marketing manager overwhelmed with data from various analytics platforms, customer feedback surveys, and social media channels might find it difficult to synthesize the information and identify key trends. ​ Mitigating Information Overload:  ○​ Prioritise and filter information: Learn to distinguish between essential and non-essential information. ○​ Set boundaries and manage distractions: Create designated times for checking emails and messages, and minimise distractions during focused work periods. ○​ Use technology effectively: Leverage tools and software that help to organise, filter, and summarise information. Emotional Disconnects - arise when strong emotions, either related or unrelated to the communication, hinder the ability to send or receive messages effectively. ​ Explanation: ○​ Receivers experiencing strong emotions might misinterpret or ignore the sender's message. ○​ Senders experiencing strong emotions might find it challenging to articulate their thoughts clearly or to control their tone and delivery. ​ Example: ○​ A manager reprimanding an employee while feeling angry about a personal matter might come across as overly harsh and critical, damaging the employee's morale and the working relationship. ​ Mitigating Emotional Disconnects: ○​ Be self-aware: Recognise your own emotional state and how it might be influencing your communication. ○​ Manage your emotions: Take steps to calm yourself down if you're feeling overwhelmed or upset before engaging in important conversations. ○​ Be empathetic: Try to understand the other person's perspective and emotional state, even if you don't agree with them. Lack of Source Familiarity or Credibility - relates to the receiver's perception of the sender's trustworthiness and expertise. ​ Explanation: If the receiver doesn't trust the sender or perceives them as lacking credibility, they are less likely to be receptive to the message. ​ Challenges with Humour: This barrier is particularly relevant when humour is involved, as sarcasm, irony, and jokes can easily be misinterpreted, especially in written communication. ​ Example: ○​ An employee receiving an email from an unknown sender with a request for sensitive information might be hesitant to comply due to concerns about phishing scams. ​ Mitigating Lack of Source Familiarity or Credibility:  ○​ Establish credibility: Build trust and rapport through consistent, reliable communication and by demonstrating expertise in your field. ○​ Be transparent: Clearly state your intentions and motivations when communicating, especially when sharing sensitive or potentially controversial information. ○​ Choose the right channel: Avoid using humour or sarcasm in written communication, as the absence of nonverbal cues can lead to misinterpretations. Workplace Gossip - the grapevine, refers to informal communication that spreads throughout an organisation, often carrying rumours, speculation, and unverified information. ​ Characteristics: ○​ It can spread rapidly and often holds more weight among employees than official communication channels. ○​ It can be difficult to control and can fuel distrust and anxiety. ​ Consequences: ○​ Can distort information and create a culture of suspicion. ○​ Can damage reputations and erode trust in management. ​ Mitigating Workplace Gossip: ○​ Communicate openly and transparently: Keep employees informed through official channels to reduce reliance on the grapevine. ○​ Address rumours promptly: Respond quickly and factually to address misinformation and prevent its spread. ○​ Foster a culture of trust and respect: Encourage employees to rely on official channels and to verify information before sharing it. Semantics - the study of meaning in language. In communication, it refers to the potential for words and phrases to be interpreted differently by different people. ​ Explanation: ○​ Jargon, technical terms, and cultural differences in language use can create barriers to understanding. ​ Example: ○​ A software developer using technical terms like "API" or "debugging" might confuse a marketing team member unfamiliar with those terms. ​ Mitigating Semantic Barriers: ○​ Use clear and concise language: Avoid using jargon or overly technical terms when communicating with individuals outside your field of expertise. ○​ Define key terms: If you must use specialised language, provide clear definitions to ensure everyone understands the terminology.  ○​ Be mindful of cultural differences: Consider how language might be interpreted differently across cultures and adapt your communication style accordingly. Gender Differences ​ Explanation: Research has highlighted that men and women often exhibit different communication styles, which can lead to misunderstandings in the workplace. ​ Examples: ○​ Women might tend to ask more questions before embarking on a project, while men might be more inclined to dive in directly. ○​ Men might use more direct and assertive language, while women might favour a more collaborative and diplomatic approach. ​ Mitigating Gender-Based Communication Barriers: ○​ Be aware of different communication styles: Understand that there are often gender-based differences in communication and approach conversations with sensitivity. ○​ Actively listen and seek clarification: Pay attention to both verbal and nonverbal cues to ensure you're understanding the intended message. ○​ Be respectful of different perspectives: Value diverse viewpoints and communication styles, and create an inclusive environment where everyone feels comfortable expressing themselves. Differences in Meaning Between Sender and Receiver ​ Explanation: Numerous factors can influence how a message is interpreted, including age, education, cultural background, and personal experiences. ​ Examples: ○​ A younger manager using slang or informal language might be misunderstood by older employees who are not familiar with those terms. ○​ A message delivered with a sarcastic tone might be taken literally by someone who doesn't recognise the sarcasm. ​ Mitigating Differences in Meaning: ○​ Know your audience: Consider the receiver's background, experiences, and potential cultural differences when crafting your message. ○​ Choose your words carefully: Use clear, concise language that avoids ambiguity and potential misinterpretations. ○​ Pay attention to nonverbal cues: Be aware of your own nonverbal communication and how it might be influencing the message. Seek feedback to ensure your message is being understood as intended. Biased Language - involves the use of words or phrases that perpetuate stereotypes or offend individuals based on their group affiliation. ​ Examples: ○​ Using gendered language (e.g., "chairman" instead of "chairperson") can reinforce gender stereotypes. ○​ Making assumptions about someone's abilities based on their race or ethnicity can create a hostile work environment. ​ Consequences: Biased language can damage relationships, create a culture of exclusion, and lead to legal issues. ​ Mitigating Biased Language: ○​ Be mindful of your language: Avoid using words or phrases that could be offensive or discriminatory. ○​ Use inclusive language: Choose words that promote equality and respect for all individuals. ○​ Seek feedback: Ask colleagues if they find your language to be inclusive and respectful, and be open to making changes. Poor Listening and Active Listening ​ Explanation: Effective communication involves both speaking and listening skills. Poor listening can be a significant barrier to understanding, while active listening enhances communication. ​ Poor Listening: ○​ Characterised by inattentiveness, distractions, interrupting, and formulating responses before the speaker has finished. ○​ Leads to misunderstandings, missed information, and frustration. ​ Active Listening: ○​ Involves giving the speaker your full attention, seeking clarification when needed, and providing feedback to demonstrate understanding. ○​ Improves comprehension, builds trust, and strengthens relationships. ​ Promoting Active Listening: ○​ Focus on the speaker: Eliminate distractions, maintain eye contact (when culturally appropriate), and avoid interrupting. ○​ Paraphrase and summarise: Restate the speaker's message in your own words to confirm understanding. ○​ Ask clarifying questions: Seek clarification if any part of the message is unclear. ○​ Be empathetic: Try to understand the speaker's perspective and feelings. The Importance of Nonverbal Communication Factors like body language, tone of voice, facial expressions, and personal space can significantly impact how a message is received. The Impact of Poor Communication The sources emphasize that ineffective communication can have detrimental consequences for organisations, potentially leading to: ​ Lowered employee morale ​ Decreased productivity ​ Financial losses ​ Increased conflict and tension ​ Damage to the organisation's reputation Types of Communication ​ Verbal communication, where you listen to someone to understand their meaning. ​ Written communication, where you read to understand meaning. Verbal Communication Verbal communication in business happens over the phone or in person and uses oral messages. This allows for immediate feedback and is a good way to convey feelings. Storytelling is a powerful verbal communication tool. It can be used to help build a shared understanding within an organisation by clarifying values and demonstrating how things are done. Storytelling can even help entrepreneurs secure funding for their firms. A company's stories can also reinforce and maintain its culture. Crucial conversations are discussions in which the stakes are high, opinions differ, and emotions are strong. These require more planning and skill than everyday interactions at work. Some tips for crucial conversations include: ​ Try to use "and" instead of "but" when communicating. ​ Be aware of your communication style and try to be flexible, particularly in stressful situations when styles can become rigid. Written Communication Written communication in business is printed messages such as memos, proposals, emails, letters, training manuals, and operating policies. These messages can be printed, handwritten, or appear on a screen. In contrast to verbal communication, written communication is often asynchronous: the sender can write a message that the receiver can read at any time. It is also a "one-to-many" communication, unlike a one-to-one verbal conversation, allowing messages to be read by many people. Writing is an essential skill for most jobs, with 67% of employees in large US companies and professional state employees having some writing responsibility. 91% of companies consider writing when hiring for any position. Nonverbal Communication Nonverbal communication is what you communicate without words. It's more important than what you say. Nonverbal cues can even affect job offers. Studies show that judges can assess candidates' social skills from silent video recordings by watching gestures, speaking time, and dress formality. To be effective communicators, your body language, appearance, and tone should align with your words. Research shows that people are more likely to blink frequently, shift their weight, and shrug when lying. Tone can also change a message's meaning. A simple shift in emphasis can entirely change a sentence's meaning, as shown in the table below: Nonverbal Cues ​ Body language: Simplicity, directness, and warmth communicate sincerity, which is key to effective communication. ​ Eye contact: Appropriate eye contact varies across cultures. ​ Facial expressions: Facial expressions communicate our emotions to the world. Our brains interpret these as "feelings" about someone's character. ​ Posture: The way we position our bodies sends messages about our interest, professionalism, and more. ​ Touch: The meaning of touch varies between people, genders, and cultures. ​ Space: Different cultures have different norms around personal space. Standing too far or too close can impede effective communication. Communication Channels and Direction of Communication Within Organisations The way a message is communicated affects how accurately it's received. Verbal, written, and nonverbal communication all have different strengths and weaknesses. Effective managers understand these differences and choose the best channel for each message, considering the nonverbal cues each channel conveys. Information Richness Different communication channels have different levels of information richness. Richer channels convey more nonverbal information. The sources illustrate the concept of information richness with a diagram: ​ Face-to-face and video conferencing are the richest channels. They allow senders and receivers to see body language and hear tone of voice, conveying emotions and building relationships. ​ Phone calls are also rich, providing tone of voice but not body language. ​ Handheld devices, blogs, and letters/memos are medium-rich channels because they convey words and sometimes pictures. ​ Formal written documents and spreadsheets are the least rich. They convey facts but lack nuance and emotional cues. Choosing the Right Channel When deciding how to communicate, consider: ​ Do you want to convey facts or feelings? ○​ Verbal communication is better for feelings, while written communication is better for facts. ​ How important is immediate feedback? ○​ Verbal communication allows for instant feedback. ​ Do you need a permanent record of the communication? ○​ Written communication provides a record. Email: The Double-Edged Sword Email has revolutionised workplace communication, but it presents challenges: ​ Information overload: Billions of emails are sent daily, leading to information overload. ​ Lack of richness: Email is medium-rich and can convey facts effectively, but it struggles with emotions and tone. People often misinterpret sarcasm and humour in emails. ​ Misinterpretation: Senders often overestimate how well they convey emotions in emails. Tips for Effective Email Communication:  ​ Don't send chain emails. ​ Don't include sensitive information you wouldn't want others to see. ​ Don't write in all caps. ​ Don't unnecessarily "cc" everyone. ​ Always proofread before sending. ​ Use a clear and concise subject line. ​ State your request in the first line. ​ Use a brief sign-off with your name and contact information. ​ Treat work emails as binding communication. ​ Let the sender know if you receive an email in error. Communication Flow in Organisations Information flows in different directions within organisations: ​ Horizontal communication: Flows between people at the same level. ​ Vertical communication: Flows between different hierarchical levels. ○​ Downward communication flows from higher levels to lower levels. ○​ Upward communication flows from lower levels to higher levels. ​ Diagonal communication: Flows between people at different levels in different departments. External Communication External communication targets audiences outside the organisation. Examples include: ​ Press releases: Convey newsworthy messages to the media and the public. ​ Ads: Paid messages placed in media outlets. ​ Web pages: Can combine elements of public relations, advertising, and editorial content to reach online audiences. ​ Customer communications: Letters, catalogues, direct mail, emails, text messages, and telemarketing messages. Developing Personal Communication Skills The sources highlight the importance of strong communication skills for success in management and offer strategies for enhancing personal communication effectiveness. Improve Your Listening Habits Active listening is a crucial skill for effective communication. Active listening involves:  ​ Giving your full attention to the speaker: This means putting aside distractions and focusing on what the speaker is saying, both verbally and nonverbally. ​ Checking for understanding: Repeat back key points to the speaker to confirm you have understood correctly. ​ Asking clarifying questions: If anything is unclear, ask questions to ensure you fully grasp the speaker's message. Active listening goes beyond simply hearing words; it's about understanding the speaker's perspective and feelings. This creates a stronger connection and builds trust. The sources suggest ten ways to improve listening habits, including starting by taking a moment to breathe before listening, avoiding multitasking, and paying attention to nonverbal cues. Career-Friendly Communication Your communication style can impact your career even when you're not actively communicating. Here are some tips for maintaining career-friendly communications: ​ Use a professional email address: Avoid informal or unprofessional email names. ​ Set a professional voicemail greeting: Ensure your voicemail message is appropriate for business contacts. ​ Manage your social media presence: Be mindful of what your online profiles say about you to potential employers or clients. ​ Google yourself regularly: Check what information about you is available online and address any potentially damaging content. Avoiding Communication Freezers Certain phrases and behaviours can hinder effective communication by making the receiver feel judged or defensive. These "communication freezers" include: ​ Telling people what to do (e.g., "You must...", "You cannot...") ​ Making threats (e.g., "You had better...", "If you don't...") ​ Offering unsolicited advice (e.g., "You should...", "It's your responsibility to...") ​ Being judgmental (e.g., "You're not thinking straight.", "You're wrong.") ​ Giving insincere praise (e.g., "You have so much potential.", "I know you can do better than this.") ​ Psychoanalyzing others (e.g., "You're jealous.", "You have problems with authority.") ​ Dismissing others' problems (e.g., "Things will get better.", "Behind every cloud is a silver lining.") ​ Asking excessive or inappropriate questions (e.g., "Why did you do that?", "Who has influenced you?")  ​ Making light of serious issues (e.g., "Think about the positive side.", "You think you've got problems!") Instead of using these communication freezers, try to approach conversations with empathy and a focus on understanding. Use active listening techniques and avoid language that could be perceived as judgmental or dismissive. Chapter 1: Introduction to Principles of Management Management - The art of getting things done through the efforts of other people Managers ​ Top Managers (responsible for developing the organisation strategy and being steward for its vision and mission) ​ Functional Managers (responsible for efficiency and effectiveness of an area) ​ Line Managers (leads a function that directly contributes to the product or service) ​ Team Managers (responsible for coordinating a subgroup of a particular function) ​ Staff Managers (leads a function that creates indirect inputs) ​ Project Manager (responsibility for planning, execution and closing any project) ​ General Manager (responsible for managing a clearly identifiable revenue producing unit) Basic management functions -​ Planing -​ Organizing -​ Leading -​ Controlling Minzbergs’s 10 managerial roles ​ Interpersonal roles (Managers are required to interact with a substantial number of people in the course of a workweek) -​ Figurehead role (represents the organisation in all matters of formality) -​ Leader role (defines the relationship between manager and employee) -​ Liaison role (interacts with peers and people outside the organisation) ​ Informational roles (Managers are required to gather, collate, analyse, store, and disseminate many kinds of information) -​ Monitor role (manager receives and collects information) -​ Disseminator role (manager transmits special information to the organisation) -​ Spokesperson role (manager disseminates the organisation’s information to its environment) ​ Decisional roles (Managers are charged with the responsibility of making decisions on behalf of both the organisation and the stakeholders with an interest in it) -​ Entrepreneur role (manager indicates change) -​ Disturbance role (manager deals with threats to organisation) -​ Resource allocator role (manager chooses if the organisation will expand) -​ Negotiator role (manager negotiates on behalf of the organisation) Leadership - the social and informal sources of influence that you use to inspire action taken by others Entrepreneurship - the recognition of opportunities and the use or creation of resources to implement innovative ideas Entrepreneur - a person who engages in the process of entrepreneurship Strategy - the central, degraded, externally oriented concept of how organisation will achieve objectives Strategic management - the body of knowledge that answers questions about the development and implementation of good strategies P-O-L-C framework ​ Planning -​ Vision and mission -​ Strategizing -​ Goals and objectives ​ Organizing -​ Organisation design -​ Culture -​ Social networks ​ Leading -​ Leadership -​ Decision making -​ Communications -​ Teams -​ Motivation ​ Controlling -​ Systems -​ Strategic human resources Planing - the function of management that involves setting objectives and determining a course ​ Environment scanning ​ Forecast future conditions ​ Establish objectives ​ Identify alternative courses of action for aching objectives ​ Make decision for best course of action ​ Formulate necessary steps ​ Constantly evaluate success of their plan and take corrective measures Types of planing ​ Strategic planning - (long term) analysing (SWOT) and then determining how to position the organisation to compete efficiently ​ Tactical planning - (medium term) planing thats is design to develop relatively concrete and specific means to implement strategic plan ​ Operational planning - (short term) planning that is descent to develop specific action steps to support strategic and tactical planning Organising - the function of management that involves developing an organisational structure and allocating resources to ensure the accomplishment of objectives ​ Organisational design - decisions made about the structure of an organisation ​ Job design - duties and responsibilities of individual jobs ​ Job enrichment - the need for workers to have jobs that entail variety and autonomy Leading - social and informal sources of influence that you use up inspire action taken by others Controlling - ensuring that the performance does not deviate from standards Steps of controlling ​ Establishing performance standards ​ Comparing actual performance with standard ​ Taking corrective action when necessary Triple bottom line - the measurement of business performance along social, environmental, and economic dimensions Economic performance - function of its success in producing benefits for its owners Social and environmental performance - while businesses have traditionally focused on economic performance, social and environmental performance are becoming increasingly important Corporate Social Responsibility (CSR) - the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract Virtuous cycle - organisations can create a virtuous cycle by investing in social and environmental initiatives that boost the company's reputation, attract and retain quality employees, strengthen the company culture, and ultimately enhance economic performance Individual level performance - those things that you have to do in your job (in role performance and extra role performance) ​ In-role performance - the tasks and responsibilities outlined in an individual's formal job description. The sources explain that in-role performance is primarily assessed on the  dimensions of productivity and quality, based on predetermined standards. For instance, a salesperson might be evaluated based on the number of sales calls made (productivity) and the percentage of calls that result in closed deals (quality). ​ Organisational citizenship behaviours (OCBs) - actions and behaviours that go beyond the formal requirements of the job but contribute to the overall effectiveness of the organisation. Organisational citizenship behaviour (OCBs) - extra role performance ​ Helping Behaviour: This includes altruism, interpersonal helping, courtesy, peacemaking, and cheerleading. ​ Sportsmanship: This involves exhibiting a positive attitude, tolerating inconveniences without complaint, and avoiding negative behaviours like gossiping or complaining. ​ Organisational Loyalty: This encompasses behaviours that demonstrate dedication and commitment to the organisation, such as speaking positively about the company to others, defending it against criticism, and being willing to go the extra mile. ​ Organisational Compliance: This involves adhering to company rules and regulations, following proper procedures, and respecting authority. ​ Individual Initiative: This includes behaviours that demonstrate proactiveness, initiative, and a willingness to go beyond the minimum requirements of the job. ​ Civic Virtue: This refers to responsible participation in the organisation's affairs, such as staying informed about company policies and events, attending meetings, and voting in elections. ​ Self-Development: This involves engaging in activities that enhance one's knowledge, skills, and abilities, ultimately benefiting the organisation. Group level performance - focuses on both the outcomes and process of collections of individuals or groups Key elements of group-level performance include: ​ Inputs: The individual contributions of each group member, such as their skills, knowledge, and effort. ​ Process Losses: Any aspect of group interaction that hinders effective problem solving or collaboration, leading to a reduction in the quality or efficiency of the group's output. For example, poor communication, interpersonal conflict, or lack of coordination can contribute to process losses. ​ Outputs: The final product or outcome of the group's work, which can be measured in various ways depending on the nature of the task. For instance, a product development team might be assessed based on the quality of the new product, the time taken to bring it to market, and the associated costs. Compatibility of Individual and Group Performance  ​ Goal Compatibility: Individual goals should support and contribute to the achievement of group goals. If individual goals are contradictory or misaligned with group goals, it can lead to conflict and reduced performance. ​ Incentive Alignment: Rewards and recognition systems should encourage both individual and group effort. If individuals are primarily rewarded for individual achievements while group performance is neglected, it can undermine teamwork and collaboration. ​ Matching Goals and Reward Structures: The organisation's reward systems should reinforce desired behaviours and outcomes. For instance, if the goal is to enhance team performance, but the reward structure solely focuses on individual productivity, it is unlikely to cultivate a strong team culture. Learning styles Active and reflective learners ​ Active learners thrive by actively engaging with information. They prefer to learn through doing, such as discussing, applying, or explaining concepts to others. They might find traditional lectures, which primarily involve note-taking, challenging. Group work is often more appealing to active learners than to reflective learners. ​ Reflective learners prefer to contemplate information quietly before taking action. They might say, "Let's think it through first." They may prefer working alone to group activities Sensing and intuitive learners ​ Sensing learners favour concrete information, established methods, and practical applications. They enjoy learning facts and may find it frustrating to be tested on material not explicitly covered in class. They often excel in hands-on work, like laboratory experiments, and value a clear connection between their studies and the real world. Courses with a lot of memorisation and routine calculations might not appeal to them. ​ Intuitive learners are drawn to abstract concepts, discovering possibilities, and exploring relationships between ideas. They may be adept at grasping new concepts, working with mathematical formulations, and thinking innovatively. Repetition can be demotivating for intuitive learners, who often prefer courses that encourage innovation and avoid rote memorisation. Visual and verbal learners ​ Visual learners retain more information when it is presented visually, such as through pictures, diagrams, flowcharts, timelines, films, and demonstrations. ​ Verbal learners are more receptive to information presented in written or spoken form. Sequential and global learners ​ Sequential learners can often solve problems or complete tasks even before fully understanding the material because they can follow the logical steps involved. They may  be very knowledgeable about specific aspects of a subject but struggle to connect these to different aspects of the same subject or to different subjects altogether. ​ Global learners may excel at solving complex problems quickly or finding innovative solutions once they have grasped the overall concept. However, they may have difficulty explaining how they arrived at their solution and may struggle with the details even after understanding the big picture. Chapter 2: Personality, Attitudes, and Work Behaviours Personality - person's relatively stable feelings, thoughts, and behavioural patterns Big five personality traits ​ Openness - curious, original, intellectual, creative, open to new ideas ​ Conscientiousness - organised, systematic, punctual, achievement oriented, dependable ​ Extraversion - outgoing, talkative, sociable, enjoys being in social situations ​ Agreeableness - affable, tolerant, sensitive, trusting, kind, warm ​ Neuroticism - anxious, irritable, temperamental, moody Openness ​ Individuals with high openness often flourish in environments that demand flexibility and continuous learning. They are typically eager to acquire new skills and excel in training settings. ​ Their open-mindedness encourages them to actively seek information and feedback, facilitating a quicker adjustment to new jobs and organisations. ​ People with high openness are generally more adaptable to change and contribute positively to teams facing unexpected shifts in their tasks. ​ They are also more likely to pursue entrepreneurship. ​ While openness is generally considered a desirable trait, a potential downside is that highly open individuals may experience boredom or impatience with routine tasks Conscientiousness ​ This trait consistently predicts strong performance across a wide range of occupations and jobs. ​ Recruiters highly value conscientiousness in potential employees, and highly conscientious applicants generally perform well in interviews. ​ Once hired, conscientious individuals tend to exhibit several positive work behaviours ​ Conscientiousness is linked to career success and career satisfaction over time. ​ Individuals with high conscientiousness are also more likely to start their own businesses, and their companies tend to have higher survival rates. ​ A possible drawback of high conscientiousness is a tendency to focus on details rather than the bigger picture Extraversion ​ Individuals with high extraversion thrive in social situations and often excel in roles that involve sales and management. ​ Their strong social skills contribute to their effectiveness as leaders, particularly in demonstrating inspirational leadership behaviours. ​ Extraverts tend to perform well in job interviews, partly due to their natural social aptitude and partly due to their proactive use of their social networks to prepare for interviews. ​ They also adjust to new jobs more easily than introverts because they actively seek information and feedback, quickly building relationships within the new environment. ​ Studies show that extraverts tend to report higher levels of happiness at work, likely stemming from the relationships they cultivate and their smoother integration into new jobs. ​ Roles that lack opportunities for social interaction might not be a good fit for extraverts. ​ Additionally, while generally positive, extraverts may exhibit some behaviours that are not ideal for employers, such as higher absenteeism rates, potentially due to their tendency to prioritise social activities or the needs of their friends. Agreeableness ​ Agreeable people tend to exhibit consistent helping behaviour at work, regardless of their mood. ​ They are less likely to retaliate when treated unfairly, possibly due to their capacity for empathy and willingness to give others the benefit of the doubt. ​ These individuals can be valuable assets to teams and effective leaders because they foster a fair and positive work environment. ​ Conversely, individuals low in agreeableness are less likely to engage in such positive behaviours and may even exhibit negative behaviours, such as unexpectedly quitting their jobs in response to conflict. Neuroticism ​ Individuals with high neuroticism often struggle with emotional regulation and may frequently experience stress and depression. ​ This can lead to several challenges in the workplace ​ If they attain management positions, they tend to cultivate an unfair work climate ​ High neuroticism is also associated with lower levels of career success in terms of income and occupational status ​ Individuals with low neuroticism, often described as having a positive affective disposition, experience positive moods more frequently than negative ones. They tend to report higher job satisfaction and stronger organisational commitment. This suggests that low neuroticism can be a significant advantage in the workplace. Other personalities ​ Self monitoring - describes an individual's ability to regulate their actions and presentation in social situations ​ Proactive personality - describes a person's tendency to take initiative to fix problems, make changes, and solve problems ​ Self esteem - relates to a person's overall positive feelings about themselves. ​ Self-efficacy - is the belief in one's capability to successfully perform a specific task Self monitoring ​ People with high self-monitoring are often referred to as "social chameleons", as they can adapt their behaviour to fit the demands of different social contexts. In contrast, those with low self-monitoring tend to behave more consistently with their internal feelings, regardless of the social setting. ​ High self-monitors are adept at impression management, which can benefit them in the workplace, leading to higher performance ratings and greater likelihood of emerging as leaders. Their impression management skills can also make them effective at influencing others and accomplishing tasks. ​ As managers, they may not provide accurate performance feedback to their employees, potentially to avoid confrontation and preserve their desired image. This avoidance could hinder their ability to carry out the controlling function effectively Proactive personality ​ Proactive personality is linked to several positive outcomes in the workplace ​ An eagerness to learn and develop their skills ​ Proactive personality is not always beneficial and can even be a liability in certain circumstances. If a proactive individual is perceived as overly pushy, attempts to change things others are not willing to let go of, or uses their initiative to make decisions that are not in the company's best interests, their proactivity can become problematic. ​ The success of a proactive person hinges on their understanding of the company's core values, their job competence, and their ability to accurately assess the demands of different situations. Self-esteem ​ Those with high self-esteem tend to have a positive self-image, confidence, and self-respect. Conversely, individuals with low self-esteem often experience self-doubt and question their worth. ​ High self-esteem is associated with higher levels of job satisfaction and job performance. People with low self-esteem may gravitate towards positions where they are less visible, such as large companies.  ​ Managing employees with low self-esteem can be challenging, as they may misinterpret negative feedback intended for performance improvement as a personal attack on their value. ​ Effectively managing these individuals requires tact and a focus on providing positive feedback when addressing performance issues Self-efficacy ​ Self-efficacy tends to be job-specific. ​ Individuals can also have a general sense of self-efficacy, a belief that they are likely to succeed in any task they undertake. ​ Self-efficacy is linked to job performance, potentially because people with high self-efficacy set higher goals for themselves and demonstrate greater commitment to achieving those goals. ​ They are also less likely to procrastinate. ​ High self-efficacy in academics is correlated with better grades and higher persistence in studies. ​ Empowering employees by giving them opportunities to test their skills and demonstrate their capabilities Values - people’s stable life goals, reflecting what is most important to them Perception - the process by which individuals detect and interpret environmental stimuli Visual perception - the process through which individuals detect and interpret stimuli in their environment. Visual perception is the specific application of this process to visual stimuli. Biases in Visual Perception ​ Extrapolation and Filling in Gaps: We tend to extrapolate from limited visual information, effectively 'filling in the gaps' to create a complete picture. For instance, in the example provided in the sources, we perceive a white triangle in the centre of an image even though it isn't actually there. Similarly, we can perceive whole objects even when they are partially obscured. This tendency to extrapolate can also contribute to inaccuracies in memory, particularly when recalling events or conversations, as we might unconsciously fill in missing details with information that aligns with our existing beliefs or opinions. ​ Contrast and Comparison: Our visual perception can also be influenced by the context in which we view objects. We tend to compare and contrast objects with each other, which can alter our perception of their size or other characteristics. For example, a circle surrounded by smaller circles might appear larger than an identical circle surrounded by larger circles. This tendency to make comparisons can affect our perceptions in the  workplace as well, such as influencing our satisfaction with our office space or our assessment of a colleague's workload. ​ Impact of Biases on Behaviour: The sources caution that our visual perception is not always reliable, and managers should be aware of the potential for biases. Relying solely on visual observations without considering other information or potential biases can lead to inaccurate judgments about employees and situations. Self-perception - how individuals view and understand themselves, encompassing their assessment of their own performance, capabilities, and characteristics. It involves forming opinions and beliefs about one's own nature and qualities. Biases in Self-Perception ​ Self-Enhancement Bias: This bias describes the tendency to overestimate our performance and capabilities, viewing ourselves more positively than others might. People with narcissistic personalities are particularly susceptible to this bias, although it exists to varying degrees in many individuals. This bias can have consequences in the workplace. For example, someone with a strong self-enhancement bias might not understand why they aren't being promoted or rewarded despite believing they are exceeding expectations. ​ Self-Effacement Bias: Also known as modesty bias, this is the opposite of self-enhancement bias. It involves underestimating our performance and capabilities and viewing ourselves more negatively than is warranted. Individuals with low self-esteem might be more prone to this bias. In a workplace setting, this bias can lead to a lack of confidence and excessive self-blame for failures. ​ False Consensus Error: This error refers to the tendency to overestimate how similar our beliefs, opinions, and behaviours are to others. We often assume that our quirks and habits are shared by more people than is actually the case. This can be problematic in organisations, as it can lead to a normalisation of potentially unethical or even illegal behaviours. For example, an employee might believe that taking office supplies home is a common practice, leading them to engage in this behaviour without recognising its ethical implications. Social per