MGT 300 Exam 2 Notes PDF

CHAPTER 12: HUMAN RESOURCE MANAGEMENT STRATEGIC HUMAN RESOURCE MANAGEMENT Human resource management (HRM) includes all the activities managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organiza...

CHAPTER 12: HUMAN RESOURCE MANAGEMENT STRATEGIC HUMAN RESOURCE MANAGEMENT Human resource management (HRM) includes all the activities 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. Strategic human resource management is the process by which managers design the component's of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals. OVERVIEW OF THE COMPONENTS OF HRM o Managers use recruitment and selection, the first component of an HRM system, to attract and hire new employees who have the abilities, skills, and experiences that will help an organization achieve goals. o After recruiting and selecting employees, managers use the second component, training and development, to ensure that organizational members develop the skills and abilities that will enable them to perform their jobs eSectively in the present and the future.The third component, performance and feedback, serves two purposes in HRM. First, performance appraisal can give managers the information they need to make good human resource decisions- decisions about how to train, motivate, and reward organizational member. Thus, the performance appraisal and feedback component is kind of a control system, that can be used with management by objectives. Second, feedback from performance appraisal serves a developmental purpose for members of an organization. When managers regularly evaluate their subordinates’ performance, they can give employees valuable information about their strengths and weaknesses and the area in which they need to concentrate. o On the basis of performance appraisals, managers distribute pay to employees, which is part of the fourth component of an HRM system. By rewarding high-performing organizational members with pay raises, bonuses, and the like, managers increase the likelihood that an organization’s most valued human resources will be motivated to continue their high levels of contribution to the organization. o Last, labor relations encompass the steps that mangers take to develop and maintain good working relationships with the labor-unions that may represent their employees’ interest. o Managers must ensure that all five of these components git together and complement their company’s structure and control systems.  o Each of the five components of HRM influences the others. The kinds of people the organization attracts through recruitment and selection for example, determine The kinds of development that are necessary The way performance is appraised The appropriate levels of pay and benefits THE LEGAL ENVIRONMENT OF HRM The local, state, and national laws and regulations that managers and organizations must abode by add to the complexity of HRM. For example, the US government commitment to equal employment opportunity (EEO) has resulted in the creation and enforcement of a number of laws that managers must abide by. The goals of EEO is to ensure that all citizens have equal opportunity to obtain employment regardless of their gender, race, country of origin, religion, age, or disabilities. Major Equal Employment Opportunity Laws ASecting HRM Year Law Description 1963 Equal Pay Act Requires that workers be paid equally if they are performing equal work. 1964 The 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 Prohibits discrimination against workers over the age of 40 in Employment Act restricts mandatory retirement. 1978 Pregnancy Discrimination Act Prohibits Employment discrimination against women on the basis of pregnancy, childbirth, and related medical decisions. 1986 Immigration Reform and Control Prohibits Discrimination on the basis of natural origin or Act citizenship, except for unauthorized immigrants, by employers having four or more employees. 1990 Americans with Disabilities Act Prohibits 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 discrimination (as does title VII) and allows the awarding of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination. 1993 Family and Medical Leave Act Requires their employers with 50 or more employees provide 12 weeks of unpaid leave for medical and family reasons, including paternity and illness of a family member. 1994 Uniformed Services Employment Requires rehiring of employees who are absent for military and Reemployment Rights Act service, with training and accommodations as needed. 2009 Lilly Ledbetter Fair Pay Act Allows employees to claim discriminatory compensation within a set time after receiving a discriminatory the check. RECRUITMENT AND SELECTION Recruitment includes all the activities managers engage in to develop a pool of qualifies candidates for open positions Selection is the process by which managers determine the relative qualifications of job applicants and their potential for performing well in a particular job HUMAN RESOURCE PLANNING o Human Resource planning includes all the activities managers engage in to forecast their current and future human resource needs. o Current human resources are the employees an organization needs today to provide high-quality goods and services to customers. o As part of human resource planning, managers must make both demand forecasts and supply forecast. o Demand forecast estimate the qualifications and numbers of employees an organization will need, given its goals and strategies. Supply forecast estimate the availability and qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor markets. o As a result of their human resource planning, managers sometimes decide to outsource to fill some of their human resource needs. Instead of recruiting and selecting employees to produce goods and services, managers contract with people who are not members of their organization to produce goods and services. o Two reasons human resource planning sometimes leads managers to outsource are flexibility and cost. First, outsourcing can give managers increased flexibility, especially when accurately forecasting human resource needs is diSicult, human resource needs fluctuate over time, or finding skilled workers in a particular area is diSicult. Second, outsourcing can sometime allow managers to use human resources at a lower cost. o When work is outsourced, managers may lose some control over quality of goods and services. JOB ANALYSIS  o Job analysis is the process of identifying the tasks, duties, and responsibilities that make up a job (the job description) and the knowledge, skills, and abilities needed to perform the job (the job specifications) o The position Analysis Questionnaire (PAQ) is a comprehensive, standardized questionnaire that many managers rely on to conduct job analyses, It focuses on behaviors jobholders perform, working conditions, and job characteristics and can be used for a variety of jobs. o The PAQ contains 194 items organized into six divisions: Information input- Where and how the jobholder acquires information to perform the job) Mental processes - Reasoning, decision making, planning, and information processing activities that are part of the job Work output - Physical activities performed on the job and machines and devices used Relationships with others - Interactions with other people that are necessary to perform the job Job context - The physical and social environment of the job The other job characteristics - Such as work place TRAINING AND DEVELOPMENT Training and development help ensure that organizational members have knowledge and skills needed to perform jobs eSectively, take on new responsibilities, and adapt to changing conditions Training focuses primarily on teaching organizational members how to perform their current jobs and helping them acquire the knowledge and skills they need to be eSective performers o Classroom instruction o On the job training o Apprenticeships Development focuses on building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges. o Classroom instruction o On the job training o Varied work experiences o Formal education Before creating training and development programs, managers should perform a needs assessment to determine which employees need training and development and what skills or knowledge they need to acquire TYPES OF TRAINING o Classroom Instruction Employees acquire knowledge and skills in a classroom setting This instruction may take place within the organization pr outside it, such a through courses at local colleges and universities or through online classes  Simulations also can be part of classroom instruction, particularly for complicated jobs that require an extensive amount of learning and in which errors carry high cost. o On the Job Training On the job training learning occurs in the work setting as employees perform their job tasks. Can be provided by coworkers or supervisors or can occur simply as jobholders gain experience and knowledge from doing the work. TYPES OF DEVELOPMENT o Varied Work Experiences Top managers need to develop an understanding of, and expertise in, a variety of functions, products and services, and markets. To develop executives who will have this expertise, managers often make sure that employees with high potential have a wide variety of job experiences, some in line positions and some in staS positions. Varied work experiences broaden employee’s horizons and help them think about the big picture. For example, one to three years stints overseas are being used increasingly to provide managers with international work experiences. With organizations becoming more global, managers need to understand the diSerent values, beliefs, cultures, regions, and ways of doing business in diSerent countries. o Formal Education Many large corporations reimburse employees for tuition expenses they incur while taking college courses and obtaining advanced degrees. TRANSFER OF TRAINING AND DEVELOPMENT o Whenever training and development take place oS the job or in a classroom setting, it is vital for managers to promote the transfer of the knowledge and skills acquired to the actual work situation. Trainees should be encouraged and expected to use their newfound expertise on the job. PERFORMANCE APPRAISAL AND FEEDBACK Performance appraisal is the evaluation of employees’s job performance and contributions to the organization. Performance feedback is the process through which managers share performance appraisal information with their employees, give them an opportunity to reflect on their own performance, and develop, with employees’ input, plans for the future. TYPES OF PERFORMANCE APPRAISAL o Trait Appraisal o Behavior Appraisal o Results Appraisal o Objective and Subjective Appraisal  Whether manager appraise performance in terms of traits, behaviors, or results, the information they assess is wither objective or subjective. Objective appraisals are based on facts and are likely to be numerical - the number of cars sold, the number of meals prepared, the number of times alter, the numbers of audits completed. Managers often use objective appraisal when results are being appraised because results tend to be easier to quantify than traits or behaviors. When how workers perform their jobs is important, however, subjective behavior appraisal are more appropriate than results appraisals. Subjective appraisals are based on managers perceptions of traits, behaviors, or results. Because subjective appraisals rest on managers perceptions, there is always the chance that they are inaccurate. o Graphing Rating Scale 1 - Very low quality 2 - Low quality 3 - Neither low quality nor high quality 4 - High quality 5 - Very high quality o Behaviorally Anchored Rating Scale (BARS) o Behavioral Observation Scale (BOS) WHO APPRAISES PERFORMANCE? o Managers are responsible for not only motivating their employees to perform at a high level but also making decisions hinging on performance appraisals, such as pay raises or promotions. o Self, Peers, Employees, and Clients o 360 Degree Performance Appraisals To improve motivation and performance, some organization include 360 degree appraisals and feedback in their performance appraisal systems, especially for managers. In a 360 degree appraisal a variety of people, beginning with the manager and including peers or coworkers, employees, superiors, and sometimes even customers or clients, appraise a mangers’ performance. The manager receives feedback based on evaluations from these multiple sources. EFFECTIVE PERFORMANCE FEEDBACK o Formal appraisal are conducted at set times during the year and are based on performance dimensions and measures that have been specified in advance. o Informal appraisals, for which managers and their employees meet as the need arises to discuss ongoing progress and areas for improvement.  o Managers often dislike providing performance feedback, especially when the feedback is negative, but doing so is an important managerial activity. There are some guidelines for giving eSective performance feedback that contributes to employee motivation and performance. Be specific and focus on behaviors or outcomes that are correctable and within a workers’ ability to improve Approach performance appraisals as an exercise in problem solving and solution finding, not criticizing Express confidence in an employee’s ability to improve Provide performance feedback both formally and informally Praise instances of high performance and areas of a job in which a worker excels Avoid personal criticisms and treat employees with respect Agree to a timbale for performance improvements o RECENT TRENDS IN PERFORMANCE APPRAISAL Performance reviews have always been a source of stress for both managers and employees. It’s diSicult to look back on an entire year’s performance and come up with constructive feedback when situation or behaviors happened so far in the past. When performance reviews take place on an annual basis, some employees are surprised and dismayed at some of the less than positive feedback they receive from supervisors, which may not have a positive impact on future employee performance. In a recent Gallup survey, on 14% of respondents agreed that performance reviews motivated them to improve. PAY AND BENEFITS Pay includes employees’ base salaries, pay raises, and bonuses and is determines by a number of factors such as the characteristics of the organization and the job levels of performance. PAY LEVEL o Pay level is a broad, comparative concept that refers to how an organization’s pay incentives compare, in general to those of other organizations in the same industry employing similar kinds of workers. PAY STRUCTURE o A pay structure clusters job into categories, reflecting their relative importance to the organization and its goals, levels of skill required, and other characteristics managers consider important. BENEFITS o Other organizations, realizing that employees’ needs and desires might diSer, oSer cafeteria-style benefit plans that let employees choose the benefits they want. o Cafeteria-style benefit plans sometimes help managers deal with employees who feel unfairly treated because they cannot take advantage of certain  benefits available to other employees who, for example, have children. Some organizations have success with cafeteria-style benefit plans; other finds them diSicult to manage. LABOR RELATIONS Labor relations are the activates managers engage in to ensure that they have eSective working relationships with the labor unions that represent their employee’s interest. Although the US government has responded to the potential for unethical and unfair treatment of workers by creating and enforcing laws regulating employment (including the EEO laws), some workers believe a union will ensure that their interest are fairly represented in their organizations. Examples of important employment legislation. In 1938, the federal government passed the fair Labor Standards act, which prohibited child labor and provided for minimum wages, overtime pay, and maximum working hours to protect workers the right. In 1963, the equal pay act mandated that workers performing equal work (work requiring the same levels of skill, responsibility, and eSort performed in the same kind of working conditions) receive equal pay. In 1970, the Occupational Safety and Health Act mandated procedures for managers to follow to ensure workplace safety. These are just a few of the US governments eSorts to protect workers rights. State legislators also have been active in promoting safe, ethical, and fair workplaces. UNIONS o Unions exist to represent workers interests in organizations. Given that managers have more power than workers in that organizations have multiple stakeholders, there is always the potential for managers to take steps that benefit one set of stakeholders, such as shareholders, while herding another, such as employees. o For example, managers may decide to speed up a production line to lower cost and increase production in the hopes of increasing returns to shareholders. Speeding up the line, however, could hurt employees forced to work at a rapid pace it may increase the risk of injuries. Also, employees receive no additional pay for the extra work they are performing. Unions would represent workers interest in a scenario such as this one. o Congress acknowledged the role that unions could play in ensuring safe and fair workplaces when it passed the National Labor Relations act of 1935. This act made it legal for workers to organize into unions to protect their rights and interest and declared certain unfair or unethical organizational practices to be illegal. The act also established the National Labor Relations board to oversee union activity. COLLECTIVE BARGAINING o Collective bargaining is negotiation between labor unions managers to resolve conflicts and disputes about important issues such as working hours, wages, working conditions, and job security. Sometimes union members go on strike to drive home their concerns to managers. Once an  agreement that union members support has been reached (sometimes with the help of a neutral third party called a mediator), union leaders and manager signed a contract spelling out the terms of the collective bargaining agreement. o Disagreements and conflicts can arise over the interpretation of the contract. In such cases, a neutral third party called an arbitrator is usually called and to resolve the contract. o An important component of a collective bargaining agreement is a grievance procedure through which workers who believe they are not being fairly treated are allowed to voice their concerns and have their interests represented by the union. CHAPTER 13: MOTIVATION & PERFORMANCE THE NATURE OF MOTIVATION Motivation may be defined as psychological forces that determine the direction of a person's behavior in an organization, a person's level of eSort, and a person's level of persistence in the face of obstacles. The direction of a person's behavior refers to the many possible behaviors a person can engage in. Motivation can come from either intrinsic or extrinsic sources. o Intrinsically motivated behavior that is performed for its own sake: the source of motivation is actually performing the behavior, and motivation comes from doing the work itself. o Extrinsically motivated behavior is the behavior that is performed to acquire material or social rewards or to avoid punishment: the source of motivation is the consequences of the behavior, not the behavior itself. Pro socially motivated behavior is the behavior that is performed to benefit or help others. An outcome is anything a person gets from a job or an organization. Some outcomes, such as autonomy, responsibility, and feeling of accomplishment, and the pleasure of doing interesting or enjoyable work, results and intrinsically motivated behavior. Organizations hire people to obtain important inputs. And input is anything a person contributes to the job or organization, such as time, eSort, education, experience, skills, knowledge, and actual work behaviors. Inputs such as these are necessary for an organization to achieve its goals. EXPECTANCY THEORY Expectancy theory, formulated by victor H. Vroom in the 1960s, posits that motivation is high when workers believe high levels of eSort lead to high performance and high performance lead to the attainment of desired outcomes.  Expectancy theory is one of the most popular theories of work motivation because it focuses on all three parts of the motivation equation: o Inputs, performance, and outcomes Expectancy theories identify three major factors that determine a person's motivation: o Expectancy o Instrumentality o Valence EXPECTNACY o Expectancy is a person's perception about the extent to which eSort (and input) results in a certain level of performance. o Expectancy captures a person's perceptions how about the relationship between eSort and performance INSTRUMENTALITY o Instrumentality, the second major concept and expectancy theory, is a person's perception about the extent to which performance at a certain level results in the attainment of outcomes. o Instrumentalities must be high for motivation to be high people must perceive that because of their high performance they will receive outcomes. VALENCE o The term valence Refers to how desirable each of the outcomes available from a job or an organization is to a person BRINGING IT ALL TOGETHER o According to expectancy theory, high motivation results from high levels of expectancy, instrumentality, and valence. o Any one of those factors is low, motivation is likely to be low. No matter how tightly desired outcomes are linked to performance, if a person thinks it is practically impossible to perform at a high level, motivation is to perform at a high level will be low. o Similarly, if a person does not think outcomes are linked to high performance, or if a person does not want the outcomes that are linked to high performance, motivation to perform at a high level will be low. o ESective managers realize the importance of high levels of expectancy, instrumentality, and valence and take concrete steps to ensure that their employees are highly motivated. NEED THEORIES A need is a requirement or necessity for survival and well-being The basic premise of need theories is that people are motivated to obtain outcomes at work that will satisfy their needs. MASLOW'S HIERARCHY OF NEEDS o Maslow suggested that these needs constitute a hierarchy of needs, with the most basic or compelling need -: psychological of safety needs - at the bottom.  o Maslow argued that the lowest level needs must be met before a person strives to satisfy needs higher up in the hierarchy, such as self esteem needs. o Once I need to satisfy, Maslow proposed, it ceases to operate as a source of motivation. The lowest level of unmet needs in the hierarchy is the prime motivator of behavior: if and when this level is satisfied, needs at the next highest level in the hierarchy motivate behavior. ALDERFER'S ERG THEORY o Clayton Alderfer's ERG theory collapsed the five categories of needs in Maslow's hierarchy into three universal categories - existence, relatedness, and growth - also arranged in a hierarchy. o Alderfer agreed with Maslow that as lower-level needs. Unlike Maslow, however, Alderfer believed that a person can be motivated by needs at more than one level at the same time. HERZBERG'S MOTIVATOR-HYGEINE THEORY o According to Herzberg's motivator-hygiene theory, people have two sets of needs or requirements: motivator needs and hygiene needs. o Hygiene needs are related to the physical and psychological context in which the work is performed. MCCLELLAND'S NEEDS FOR ACHIEVEMENT, AFFILIATION, AND POWER o The need for achievement I the extent to which a person has a strong desire to perform challenging tasks well and to meet personal standards for excellence. o The need for aSiliation is the extent to which a person is concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around them get along with each other o The need for power is the extent to which one wants to control or influence others OTHER NEEDS o Clearly, more needs motivate workers than the needs described by these four theories. o For example, more and more workers are feeling the need for work-life balance and time to take care of their loved ones while being highly motivated at work. o This need was particularly diSiculty to meet during the global pandemic, when most companies sent their employees home to work remotely and many people struggled with trying to do their jobs while taking care of children and other family members who were also home. Interestingly enough, recent research suggest that being exposed to nature (even just being able to see some trees from a window) has many valuable eSects, and a lack of such exposure can impair well-being and performance. Thus, having some time during the day when one can at least see nature may be another need. EQUITY THEORY  Equity theory is a theory of motivation that concentrates on people perceptions of the fairness of their work outcomes relative to, or in proportion to, their work inputs. Equity theory complements expectancy an need theory complements expectancy and need theories by focusing on how people perceive the relationship between the outcomes they receive from their jobs and organizations and the inputs they contribute. Equity theory was formulated in the 1960s by J. Stacy Adams, who stressed that what is important in determining motivation is the relative rather than the absolute levels of outcomes a person receives and inputs a person contributes. Specifically, motivation is influenced by the comparison of one's own outcome- input ratio with the outcome-input ratio of referent. The referent might be another person or a group of people who are perceived to be similar to oneself; the referent also might be oneself in a previous job of one's expectation's about what outcome-input ratios should be. In a comparison of one's own outcome-input ratio to a referent's ratio one's perceptions of outcomes and inputs (not any objective indicator of time) are key. EQUITY o Equity exists when a person perceives their own outcome-input ratio to be qual to a referent's outcome-input ratio. INEQUITY o Inequity, or lack of fairness, exists when a person's outcome-input ratio is not perceived to be equal to a referent's. In equity creates pressure or tension inside people and motivates them to restore equity by bringing the two ratios back into balance. WAYS TO RESTORE EQUITY o According to equity theory, both underpayment inequity and overpayment inequity create tension that motivates most people to restore equity by bringing the ratios back into balance. o When people experience underpayment inequity, they may be motivated to lower their inputs by reducing their working hours, putting forth the less eSort on the job, or being absent; or they may be motivated to increase their outcomes by asking for a raise or promotion. o For example, a financial analyst at a large company noticed they were working longer hours and getting more work accomplished than a colleague who had the same position, yet they bot received exactly the same pays and other outcomes. o To restore equity, the financial analyst decided to stop going in early and staying late. o An alternative approach to restoring equity would have been for the financial analyst to increase their outcomes-perhaps by asking the manager of the financial department for a raise. EQUITY AND JUSTICE IN ORGANIZATIONS  o Equity theory, given its focus on the fair distribution of outcomes in organizations to foster high motivation, is often labeled a theory of distributive justice. o Distributive justice refers to an employee's perception of the fairness of the distribution of outcomes (such as promotions, pay, job assignments, and working conditions) in an organization. Employees are more likely to be highly motivated when they perceive distributive justice to be high rather than low. o Three other forms of justice are important for high motivation. o Procedural justice refers to an employee's perception of the fairness of the procedures used to determine how to distribute outcomes in an organization. o For example, if important outcomes such as pay and promotions are distributed based on performance appraisals and an employee perceives that the procedure that is used (ie the performance appraisal system) is unfair, then procedural justice is low and motivation is likely to suSer. More generally, motivation is higher when procedural justice is high rather than low. o Informational justice refers to an employee's perception of the extent to which their manager provides explanations for decisions and the procedures used to arrive at them o For example, is a manager explains how performance is appraised and how decisions about the distribution of outcomes are made, informational justice (and motivation)are more likely to be high than if the manager does not do this. All in all, it is most advantages for distributives, procedural, interpersonal, and informational justice all to be high. GOAL SETTING THEORY Goal setting theory focuses on motivating workers to contribute their inputs to their job and organization; in this way it is similar to expectancy theory and equity theory. LEARNING THEORIES The basic premise of learning theories as applied to organizations is that managers can increase employee motivation and performance by how they link the outcomes that employees receive to the performance of desired behaviors and the attainment of goals. Thus, learning theory focuses on the linkage between performance and outcomes in the motivation equation. OPERANT CONSITIONING THEORY o According to operant conditioning theory, developed by psychologist B.F. Skinner, people learn to perform behaviors that leas to desired consequences and learn not to perform behaviors that lead to undesired consequences. SOCIAL LEARNING THEORY  o Social learning theory proposes that motivation results not only from direct experience of rewards and punishments but also from a person's thoughts and beliefs. PAY AND MOTIVATION As these theories suggest, to promote high motivation, managers should base the distribution of pay to organizational members on performance levels so high performers receive more pay then low performers (other things being equal). A compensation plan basing pay in performance is often called merit pay plan. BASING MERIT PAY INDIVIDUAL, GROUP, OR ORGANIZATIONAL PERFORMANCE o Managers can base merit pay on individual, group, or organizational performance. When individual performance (such as the dollar value of merchandise a salesperson sells, the number of loudspeakers a factory worker assembles, or a lawyer's billable hours) can be accurately determined, individual motivation is likely to be highest when pay is based on individual performance. SALARY INCREASE OR BONUS EXAMPLES OF MERIT PAY PLANS o Using piece-rate pay, an individual-based merit okay, manager base employee's pay on the number of units each employee produces, whether televisions, computer components, or welded auto parts. CHAPTER 14: LEADERSHIP THE NATURE OF LEADERSHIP Leadership is the process by which a person exerts influence over other people and inspires, motivates, and direct their activities to help achieve group or organizational goals. The person who exerts such influence is a leader. When leaders are eSective the influence they exert over others helps a group or an organization achieve it performance goals. PERSONAL LEADERSHIP STYLE AND MANAGERIAL TASKS o A manager's personal leadership style - that is, the specific ways in which a manager chooses to influence other people - shapes how that manager approaches planning, organizing, and controlling (the other principal tasks of managing). o Consider Julie Sweet's personal leadership style as described in "A managers Challenge," She models values like learning and transparency and fosters an environment in which learning is continuously preparing the company for its new skill needs in a rapidly changing environment. o Managers at all levels and in all kinds of organizations have their own personal leadership styles, which determine not only how they lead their employees but also how they perform the other management tasks.  SERVANT LEADERSHIP o Servant Leaders, above all else, have a strong desire to work for the benefit of others. Servant leaders share power with followers and strive o ensure that followers' most important needs are met, that they are able to develop as individuals, that their well-being is enhanced, and that attention is paid to those who are least well-oS in a society. LEADERSHIP STYLES ACROSS CULTURES o The collectivistic culture in Japan places prime emphasis on the group rather than the individual, so the importance of individuals' own personalities, needs, and desires is minimized. o Organization in the United States tend to be very profit-oriented and thus tens to downplay the importance of individual employees' needs and desires. o Many countries in Europe have a more individualistic perspective than Japan and a more humanistic perspective than the United States, and this may result in some European managers' being more people-oriented than their Japanese or American counterparts. o European managers, for example, tend to be reluctant to lay oS employees, and when a layoS is absolutely necessary, they take careful steps to make it as painless as possible. o Another cross-cultural diSerence occur in time horizons. While managers in any one country often diSer in their time horizons, there are also national diSerences. For example, US organizations tend to have a short-term profit orientation; thus US managers personal leadership styles emphasize short-term performance. Japanese organizations tend to have a long-term growth orientation, so Japanese manager's personal leadership style emphasize long- term performance. POWER: THE KEY TO LEADERSHIP o There are several types of power: legitimate, reward, coercive, expert, and referent power. o Legitimate Power Legitimate power is the authority a manager has by virtue of their position in an organization's hierarchy. Personal leadership style often influences how a manager exercises legitimate power. Consider the case of a first-line manager in a greeting card company who leads a group of 15 artists and designers. The manager has the legitimate power to hire new employees, assign projects to the artists and designers, monitor their work, and appraise their performance. The manager uses this power eSectively by making sure project assignments match the interests of the employees as much as possible so they will enjoy their work and  monitoring their work to be sure they are on track but stopping short of engaging in close supervision, which can hamper creativity. The manager also makes sure that employee performance appraisals are developmental in nature, providing concrete advice for areas where improvements could be made. In addition, the manager recently negotiated for an increase in the level of legitimate power, so the manager can now initiate and develop proposals for new product lines. o EMPOWERMENT: AN INGREDIENT IN MODERN MANAGEMENT Empowerment-the process of giving employees at all levels the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs-is becoming increasingly popular in organizations. When leaders empower their employees, the employees typically take over some responsibilities and authority that used to reside with the leader or manager, such as the right to reject parts that do not meet quality standards, the right to check one's own work, and the right to schedule work activities. Empowered employees are given the power to make some decisions that their leaders or supervisors used to make. TRAIT AND BEHAVIOR MODELS OF LEADERSHIP THE TRAIT MODEL o The trait model of leadership focused on identifying the personal characteristics that cause eSective leadership. Researchers though eSective leaders must have certain personal qualities that set them apart from ineSective leaders and from people who never become leaders. THE BEHAVIOR MODEL o After extensive study in the 1940s and 1950s, researchers at The Ohio State University identified two basic kinds of leader behavior that many leaders in the United States, Germany, and other countries engaged to influence their employees: consideration and initiating structure. TRANSFORMATIONAL LEADERSHIP Transformational leadership occurs when managers change (or transform) their employees in three important ways: o Transformational managers make employees aware of how important their jobs are for the organization and how necessary it is for them to perform those jobs as best they can so the organization can attain its goals. More than a decade ago, Hastings and Netflix's then chief talent oSicer, Patty McCord, put together a PowerPoint presentation that became known as the Netflix Culture Deck, which describes the organizational practices the company believes in and helps employees understand their pivotal role in creating value for customers as well as for the organization. The slide deck was a collaborative eSort on the part of managers, employees, and others who worked in the Netflix organization at various times. For example, one of the practices involves being a culture of freedom and responsibility, which  encourages employees to do the right thing because they are "smart people with good judgment.” o Transformational managers make their employees aware of the employees' own needs for personal growth, development, and accomplishment. Hastings decided long ago to eliminate formal performance reviews at Netflix because they seemed too infrequent and ritualistic. Instead, managers and their direct reports have conversations about performance as part of their work. One of the important themes that run through these discussions is honesty; in some instances, technology changes implemented at Netflix have caused people's jobs to change dramatically or become obsolete. When this happens, Netflix managers are expected to have heart-to-heart conversations with the employees in question about losing their jobs and to provide them with a great severance package that will give them time (and money) to go look for another career path outside the company that makes sense for the employee and helps them grow on a personal and professional level. o Transformational managers motivate their employees to work for the good of the organization as a whole, not just for their own personal gain or benefit. Part of Hastings's approach to employees and their important role in the company's success is the vision of a "dream team," one in which every colleague is the best at their job and work really well as collaborators to move the company forward in terms of innovation and overall success. As part of this scenario, the company believes in providing very competitive salaries, unlimited vacation days, generous parental leave for all new parents, and fully vested stock options. In return, Hastings expects Netflix employees to act in its best interest, use good judgment, behave like adults, and have fun while doing it. o BEING A CHARISMATIC LEADER Transformational managers such as Reed Hastings are charismatic leaders. They have a vision of how good things could be in their work groups and organizations that is in contrast with the status quo. Their vision usually entails dramatic improvements in group and organizational performance as a result of changes in the organization's structure, culture, strategy, decision making, and other critical processes and factors. This vision paves the way for gaining a competitive advantage. Charismatic leaders are excited and enthusiastic about their vision and clearly communicate it to their employees. The excitement, enthusiasm, and self-confidence of a charismatic leader contribute to the leader's being able to inspire followers to enthusiastically support their vision. People often think of charismatic leaders or managers as being "larger than life.' o STIMULATING EMPLOYEES INTECTUALLY  Whereas in the past employees may not have been aware of some problems, may have viewed problems as a "management issue" beyond their concern, or may have viewed problems as insurmountable, the transformational manager's intellectual stimulation leads employees to view problems as challenges that they can and will meet and conquer. The manager engages and empowers employees to take personal responsibility for helping to solve problem, as Reed Hastings has done at Netflix. o ENGAGING IN DEVELOPMENTAL CONSIDERATION When managers engage in developmental consideration, they not only perform the consideration behavior described earlier, such as demonstrating true concern for the well-being of employees, but also go one step further. The manager goes out of their way to support and encourage employees, giving them opportunities to enhance their skills and capabilities and to grow excel on the job. o THE DISTINCTION BETWEEN TRANSFORMATION AND TRANSACTIONAL LEADERSHIP In transactional leadership, managers use their reward and coercive powers to encourage high performance,. When managers reward high performers, and motivate employees by reinforcing desired behaviors and extinguishing in transactional leadership. Managers who eSectively influence their employees to achieve goals, yet do not seem to be making the kind of dramatic changes that are part of transformational leadership, are engaging in transactional leadership. GENDER AND LEADERSHIP Research suggests that managers of any gender who have leadership positions in organizations behave in similar ways. Women do not engage in more consideration than men, and men do not engage in more initiating structure than women. Research does suggest, however, that leadership style may vary between genders. Women tend to be somewhat more participative as leaders, involving employees in decision making and seeking their input." Men as managers tend to be less participative, making more decisions on their own and wanting to do things their own way. There are at least two reasons that managers who are women may be more participative as leaders than managers who are men. First, employees may try to resist the influence of managers who are women more than they do the influence of managers who are men. Some employees may never have reported to a woman before, some may incorrectly see a management role as being more appropriate for a man than for a woman, and some may just resist being managed by a woman. To overcome this resistance and encourage employees' trust and respect, manager who are women may adopt a participative approach. EMOTIONAL INTELLIGENCE & LEADERSHIP CHAPTER 15: EFFECTIVE GROUPS 7 TEAMS GROUPS, TEAMS, & ORGANIZATIONAL EFFECTIVENESS A group may be defined as two or more people who interact with each other to accomplish certain goals or meet certain need. A team is a group whose members work intensely with one another to achieve a specific common goal or objective Groups and teams can help an organization gain competitive advantage because they can o Enhance it performance o Increase its responsiveness to customers o Increase innovation o Increase employee’s motivation and satisfaction One main advantages of using groups is the opportunity to obtain a type of synergy, o People working in a group can produce more or higher-quality outputs than would have been produced if each person had worked separately and all their individual eSorts were later combined To take advantage of the potential for synergy in groups, managers need to make sure that groups are composed of member who have complementary skills and knowledge relevant to the group’s work o Foe example, at Hallmark Card Inc, the company division that sells cards, gift wrap, and related products in more than 30 languages in 200 countries, synergies are created by bringing together all the diSerent functions needed to create and produce a greeting card in a cross-functional team (a team composed of members from diSerent departments or functions). o For instance artists, writers, designers, and marketing experts work together as team members to develop new cards and other products GROUPS, TEAMS, AND RESPONSIVENESS TO CUSTOMERS Being responsive to customers often requires the wider variety of skills and expertise found in diSerent departments and at diSerent levels in an organization’s hierarchy. Sometimes, for example, employees at lower levels in an organizations’s hierarchy, such as sales representatives for a software company, are closest to its customers and the most attuned to their needs. However, lower-level employees, like salespeople, often lack the technical expertise needed for new product ideas; such expertise is found in the research and development department. Bringing salespeople, research and development experts, and members of other  departments together in a group or cross-functional team can enhance responsiveness to customers. TEAMS AND INNOVATION Innovation- the creative development of new products, new technologies, new services, or even new organizational structures- Using teams to innovate has other advantages. o First, team members can often uncover one another’s errors or false assumptions; one person acting alone would not be able to do this o Second, team members can critique one another’s approaches and build oS one another’s strengths while compensating for weaknesses-an advantage of devil’s advocacy and dialectical inquiry GROUPS AND TEAMS AS MOTIVATORS Managers often form groups and teams to accomplish organizational goals and then find that using groups and teams brings additional benefits. Members of groups, especially members of teams )because of the higher of interaction in teams), are likely to be more satisfied than they would have been if they had been on their own The experience of working alongside other highly charged and motivated people can be stimulating and motivating: o Team members can see how their eSorts and expertise directly contribute to the achievement of team and organizational goals, and they feel personally responsible for the outcomes or results of their work. (This has been the case of hallmark) The increased motivation and satisfaction that can accompany the use of teams can also lead to other outcomes, such as increased eSiciency and talent retention TYPES OF GROUPS AND TEAMS Formal groups are those that managers establish to achieve organizational goals The formal work groups are cross-functional teams composed of members from diSerent departments, such as those at Hallmark, and cross-cultural teams composed of members from diSerent cultures or countries, such as the teams at global car makers. THE TOP MANAGEMENT TEAM A central concern of the CEO and president of a company is to form a top management team to help the organization achieve its mission and goals.  Top management teams are responsible for developing the strategies hat result in an organization’s competitive advantage; most have between five ad seven members. In forming their top management teams, CEOs are well advised to stress diversity in expertise, skills, knowledge, and experience Thus, many top management teams are also cross-functional teams: o They are composed of members from diSerent departments, such as finance, marketing, production, and engineering. Diversity also helps guard against group-think- faulty group decision making that results when group members strive for agreement at the expense of an accurate assessment of the situation. RESEARCH AND DEVELOPMENT TEAMS Managers in pharmaceuticals, computers, electronics, electronic imaging, and other high-tech industries often create research and development teams to develop new products. COMMAND GROUPS Employees who report to the same supervisor compose a command group When top managers design an organization’s structure and establish reporting relationships and a chain of command, they are essentially creating command groups. Command groups, often called departments or units, perform a significant amount of the work in many organizations TASK FORCES Managers form tasks forces to accomplish specific goals or solve problems in a certain time period; taks forces are sometimes called ad hoc committees SELF-MANAGED WORK TEAMS Self managed work teams are teams in which members are empowered and have the responsibility and autonomy two complete identifiable pieces of work Managers can take a number of steps to ensure that self-managed work teams are eSective and help an organization achieve its goals: o Give teams enough responsibility and autonomy to be truly self-managing. Refrain from telling team members what to do or solving problems for them, even if you (as a manager) know what should be done. o Make sure a team’s work is suSiciently complex so that it entails a number of diSerent steps or procedures that must be performed and results in some kind of finished end product  o Carefully select members of self-managed work teams. Team members should have the diversity of skills needed to complete the team’s work, have the ability to work with others, and want to be part of a team. o As a manager, realize that your role with self-managed work teams calls for guidance, coaching, and supporting not supervising. You are a resource for teams to turn to when needed. o Analyze what type of training team members need, and provide it. Working in a self-managed work team often requires that employees have more extensive technical and interpersonal skills. VIRTUAL TEAMS Virtual teams are teams whose members rarely or never meet face-to-face but, rather, interact by using various forms of information technology such as email, text messaging, collaborative software programs, videoconferences, and various meeting and management apps. FRIENDSHIP GROUPS Friendship groups are informal groups of employees who enjoy one another’s company and socialize with one another. Members of friendship groups may have lunch together, take breaks together, or meet after work for meals, sports, or other activities. Friendship groups help satisfy employees’ needs for interpersonal interaction, can provide needed social support in times of stress, and can contribute to people’s feeling good at work and being satisfied with their jobs. INTEREST GROUPS Employees form informal interest groups when they seek to achieve a common goal related to their membership in an organization. Employees may form interest groups, for example, to encourage managers to consider instituting flexible working hours providing on-site child care, improving working conditions, or more proactively supporting environmental protection. Interest groups can give managers valuable insights into the issues and concerns that are foremost in employees’ minds. GROUP DYNAMICS GROUP SIZE Large groups also let managers obtain the advantages stemming from the division of labor- splitting the work to be performed into particular tasks and assigning tasks to individual workers. Workers who specialize in particular. Tasks are likely to become skills at performing those tasks and contribute significantly to high group performance. GROUP TASKS The appropriate size of a high-performing group is aSected by the kinds of tasks the group is to perform. An important characteristic of group tasks that aSects performance is task interdependence - the degree to which the work performed by one member of a group influences the work performed by other members. GROUP LEADERSHIP All groups and teams need leadership. Indeed, as we discussed in detail, eSective leadership is a key ingredient in high-performing groups, teams, and organizations. Sometimes managers assume the leadership role in groups and teams, as ins the case in many command groups and top management teams. Or a manager may appoint a member of a group who is not a manger to be group leader or chairperson, as is the case in a task force or standing committee. In other cases, group or team members may choose their own leaders, or a leader may emerge-naturally as group members work together to achieve group goals, When managers empower members of self-managed work teams, they often let group members choose their own leaders. Some self-managed work teams find it eSective to rotate the leadership role among their members. Whether or not leaders of groups and teams are managers, and whether they are appointed by managers (often referred to as formal leaders) or emerge naturally in a group (often referred to as informal leaders), they play an important role in ensuring that groups and teams perform up to their potential. GROUP DEVELOPMENT OVER TIME In the first stage, forming, members try to get to know one another and reach a common understanding of what the group is trying to accomplish and how group members should behave. During this stage, managers schools strive to make each member feel that they are a valued part of the group. In the second stage, storming, group members-experience conflict and disagreements because some members do-not wish to submit to the demands of other group members. During the third stage, norming, close ties between group members develop, and feelings of friendship and camaraderie emerge. Group members arrive at a consensus about what goals they should seek to achieve and how group members should behave toward one another. In the fourth stage, performing, the real work of the group is accomplished. Depending on the type of group in question, managers need to take diSerent steps at this stage to help ensure that groups are eSective. The last stage, adjourning, applies only to groups that eventually are disbanded, such as task force. GROUP NORMS Group norms are shared guidelines or rules for behavior that most group members follow. Groups develop norms concerning a wide variety of behaviors, including working hours, the sharing of informations among group members, how certain group task should be performed, and even how members of a group should dress. GROUP COHESIVENESS Another important element of group dynamics that aSects group performance and eSectiveness is group cohesiveness, which is the degree to which members are attracted to or loyal to their group or team. MANAGING GROUPS AND TEAMS FOR HIGH PERFORMANCE The concept of high performing work teams is not new; it has been used by successful organizations for more than 20 years. Ways to create such a high performance begin with three key strategies o Motivating group members to work toward the achievement of organizational goals o Reducing social loafing o Helping groups manage conflict eSectively MOTIVATING GROUP MEMBERS TO ACHIEVE ORGANIZATIONAL GOALS Manager often rely on some combination of individual and group-based incentives to motivate members of groups and teams to work toward the achievement of organizational goals When individual performance within a group can be assessed, pay is often determined by individual performance or by both individual and group performance. When individual performance within a group cannot be accurately assessed, group performance should be the key determinant of pay levels. Many companies that use self-managed work teams base team member’s pay in part on teams performance. A major challenge for managers is to develop a fair pay system that will lead to both high individual motivation and high group or team performance. REDUCING SOCIAL LOAFING IN GROUPS Social loafing is the tendency of individual to put forth less eSort when they work in groups than when they work alone. HELPING GROUPS TO MANAGE CONFLICT EFFECTIVELY  At some point, practically all groups experience conflict wither within the group (intragroup conflict) or with other groups (intergroup conflict).