Conflict & Stress in Organizations - PDF

14. Conflict & Stress Chapter 13-13.3, 13.5-EndOfChap 13.1 Organizational Conflict + Causes Group Identification and Intergroup Bias People naturally favor their own "in-group" over "out-groups," even without interaction or cohesion. This bias stems from self-...

14. Conflict & Stress Chapter 13-13.3, 13.5-EndOfChap 13.1 Organizational Conflict + Causes Group Identification and Intergroup Bias People naturally favor their own "in-group" over "out-groups," even without interaction or cohesion. This bias stems from self-esteem, boosted by associating with group successes and distancing from failures. In organizations, group identification often aligns with characteristics like job role, function, or status. Interdependence Definition: When individuals or groups rely on each other to achieve their goals. Conflict Causes: ○ Requires coordination, which can lead to disagreements. ○ Power dynamics may emerge, with one party abusing control. Positive Outcomes: Interdependence can also foster collaboration when managed well. Differences in Power, Status, and Culture Power: One-sided dependence breeds hostility (e.g., workers relying on inspectors). Status: Conflict arises when lower-status individuals influence or control higher-status individuals (e.g., junior employees with better tech skills). Culture: Cultural clashes within organizations (e.g., efficiency-focused vs. patient-care-focused teams) can lead to conflict. Ambiguity Definition: Lack of clarity in goals, roles, or performance criteria. Examples: ○ Blame-shifting between departments for poor outcomes. ○ Disagreements about unclear performance expectations. Impact: Ambiguity often results in conflict, such as "turf wars" or misaligned interpretations. Scarce Resources Impact: Limited budgets, space, or support intensify conflicts as parties compete for resources. Examples: ○ Scientists clashing over reduced lab space. ○ Amazon employees competing for promotions and recognition. 13.2: types of conflict Types of Conflict 1. Relationship Conflict: ○ Tensions based on personal disagreements, not tasks. ○ Examples: Personality clashes. 2. Task Conflict: ○ Disputes about the work itself or goals. ○ Can be beneficial for performance if managed well. 3. Process Conflict: ○ Disputes over how work should be organized (roles, authority, resources). Constructive vs. Destructive Conflict Constructive Conflict: ○ Can improve decisions and drive change. ○ Happens when open-minded discussion occurs despite disagreements. Destructive Conflict: ○ Harms team cohesion and performance. ○ Common when relationship and process conflicts escalate. Signs for Using Conflict Stimulation "Friendly rift" (healthy tension). Need for diversity of opinions. Suppressed differences that need addressing. Conflict Dynamics Negative Patterns in Conflict: ○ Focus shifts from solving the problem to “winning.” ○ Teams hide or distort information. ○ Groups become polarized and resistant to compromise. ○ Opponents are stereotyped negatively. ○ Aggressive members take leadership roles, worsening conflict. Cycle of Conflict: ○ Unresolved issues escalate as both sides retaliate and grow hostile. Manager’s Role Conflict can be manipulated positively (e.g., by promoting diverse perspectives). Balance is key: too little or too much conflict can hurt performance. 13.3 Managing Conflict Modes of Managing Conflict Conflict management styles vary in assertiveness (satisfying your own concerns) and cooperativeness (satisfying others' concerns). Each style has strengths and weaknesses, depending on the situation. Styles of Conflict Management: 1. Avoiding: ○ Low assertiveness, low cooperativeness. ○ "Head in the sand" response: avoids confrontation, offers temporary stress relief. ○ Useful for trivial issues, cooling-off periods, or when dealing with a powerful opponent. ○ Limitation: Doesn’t resolve conflict, often ineffective in the long run. 2. Accommodating: ○ Low assertiveness, high cooperativeness. ○ Prioritizes others’ needs, often seen as yielding or self-sacrificing. ○ Effective when you’re wrong, to build goodwill, or when the issue matters more to the other party. ○ Risk: Can be seen as a weakness and harm future interactions. 3. Competing: ○ High assertiveness, low cooperativeness. ○ Aims for personal victory, often in win-lose situations. ○ Useful when stakes are high, you're confident in your position, and no relationship needs to be preserved. ○ Example: Steve Jobs’ intense approach to work. ○ Limitation: Can harm relationships and escalate tensions. 4. Compromising: ○ Moderate assertiveness, moderate cooperativeness. ○ Seeks a middle ground, where both parties partially satisfy their needs. ○ Effective as a fallback option or for resource disputes. ○ Limitation: May not lead to the most innovative or creative solutions. 5. Collaborating: ○ High assertiveness, high cooperativeness. ○ Seeks win-win outcomes through problem-solving and cooperation. ○ Most effective when the issue is critical, and both parties' needs matter. ○ Outcome: Enhances trust, productivity, and innovation but requires effort and time. Conflict Outcomes (Visibility of Conflict)  Suppressed Conflict: Results from avoiding or accommodating; appears calm but underlying issues remain unresolved. Constructive Conflict: Encouraged through collaboration and compromise; promotes growth and effective solutions. Destructive Conflict: Results from competing; damages relationships and performance. 13.5 Model of stress Key Terms: 1. Stressors: ○ Environmental events or conditions that have the potential to induce stress. ○ Examples: extreme heat, isolation, or hostile people. ○ Role of Personality: Influences how potential stressors are perceived and their impact. 2. Stress: ○ A psychological reaction to stressors when demands feel overwhelming. ○ Positive Side: Moderate stress can provide stimulation. ○ Negative Side: High stress leads to anxiety, tension, and reduced performance. 3. Stress Reactions: ○ Behavioral, psychological, and physiological consequences of stress. ○ Types: Passive (e.g., elevated blood pressure). Active coping strategies (e.g., confronting stressors directly). ○ Organizational Impact: Individual strategies may help the person but harm the organization. Model of a Stress Episode (Exhibit 13.5): 1. Pathway: ○ Stressor → Stress (influenced by personality) → Stress Reactions. 2. Coping Mechanisms: ○ Direct Confrontation: Addresses the root cause. ○ Anxiety Reduction: Focuses on reducing stress symptoms, not causes. Personality and Stress: 1. Locus of Control: ○ Internals: Believe in control over their actions, less anxious, prefer confronting stressors. ○ Externals: Attribute outcomes to external factors, more anxious, rely on short-term strategies. 2. Type A Behavior Pattern: ○ Traits: Competitiveness, urgency, and aggression. ○ Stress Effects: Higher heart rates, hostility, and long work hours. ○ Risks: Poor health, dissatisfaction, and lower performance. ○ Extreme: Workaholism – compulsive working behavior. 3. Negative Affectivity: ○ Definition: Tendency to view the world negatively. ○ Impact: Higher stress perception, more subjective stress, and dissatisfaction. Organizational Concerns: 1. Reactions helpful to individuals may disrupt workflow or burden colleagues. 2. Organizations should address employee stress to minimize workplace disruptions. Practical Takeaways: 1. For Individuals: ○ Recognize how personality traits affect stress perception and management. ○ Use active coping strategies for long-term stress resolution.  2. For Organizations: ○ Provide support systems to reduce workplace stress. ○ Identify stress triggers and implement preventive measures. 13.6 Stressors in Org life General Stressors in Organizational Life 1. Counterproductive Work Behavior: ○ Definition: Intentional verbal/physical actions causing conflict and harm (e.g., workplace bullying). ○ Bullying: Repeated negative behavior targeting individuals of lower status. Types: Psychological (demeaning, sabotaging work) or physical. Mobbing: Group bullying that isolates a victim. ○ Cyberbullying: Harassment via digital platforms, often anonymous. ○ Ostracism: Persistent exclusion from workplace interaction. 2. Sexual Harassment: ○ Defined as unwanted actions of a sexual nature with severe impacts on mental health and workplace performance. Job Demands–Resources Model Job Demands: ○ Physical, psychological, or organizational features causing stress (e.g., deadlines, ambiguity). Job Resources: ○ Features aiding personal/professional growth (e.g., pay, autonomy). Key Insight: High demands + low resources = Burnout. Burnout and Engagement Burnout: Emotional exhaustion, cynicism, and reduced self-efficacy. Engagement: Vigour, dedication, and absorption in work. Causes of Burnout: ○ High expectations clashing with reality. ○ Personality traits (e.g., neuroticism, low self-esteem). Role-Specific Stressors 1. Boundary Role Stress: ○ Occurs when employees interact across organizational/public boundaries. ○ Common among teachers, nurses, and social workers. 2. Operative-Level Stressors: ○ Poor Working Conditions: Exposure to hazards (e.g., noise, cold, pollution). ○ Poor Job Design: Monotony or tasks too simple/complex. 3. Executive/Managerial Stressors: ○ Role Overload: Too many responsibilities over extended hours. ○ Heavy Responsibility: Decisions impacting others' lives can lead to guilt. Applied Focus: Video Game Industry Crunch Culture: Intense workloads in short periods (e.g., 12-14-hour workdays). Issues: Employee burnout, reduced creativity, and health problems. Solution: Balancing work demands with realistic expectations.  13.7 Reactions ot conflict Behavioral Reactions to Stress 1. Problem Solving: ○ Active strategies to reduce or eliminate the stressor. ○ Examples: Delegation, time management, asking for help, and searching for alternatives. 2. Seeking Social Support: ○ Building and relying on close ties with colleagues, friends, or family for emotional and instrumental support. 3. Performance Changes: ○ Stress may reduce performance or act as a motivator. ○ Chronic stressors generally damage performance, especially those affecting decision-making or requiring adaptability. Psychological Reactions to Stress 1. Defense Mechanisms: ○ Rationalization: Justifying actions with socially acceptable reasons. ○ Projection: Attributing personal motives to others. ○ Displacement: Redirecting anger to a safer target. ○ Reaction Formation: Acting opposite to true feelings. ○ Compensation: Overemphasizing strengths to make up for weaknesses. 2. Short-Term vs. Chronic Use: ○ Occasional use can relieve anxiety but chronic reliance may worsen stress due to unresolved issues. Physiological Reactions to Stress 1. Cardiovascular Effects: ○ Stress impacts blood pressure, cholesterol, and pulse, leading to heart risks. 2. Immune System: ○ Stress reduces immunity, increasing susceptibility to infections. 3. Burnout: ○ Chronic stress is linked to significant physiological issues, such as cardiovascular diseases. Organizational Strategies for Managing Stress 1. Job Redesign: ○ Adjusting job roles to provide autonomy, flexibility, and reduced workloads. 2. "Family-Friendly" HR Policies: ○ Includes telecommuting, job-sharing, and flexible work arrangements to balance work and personal responsibilities. 3. Stress Management Programs: ○ Includes techniques like relaxation, mindfulness, and stress inoculation for proactive stress reduction. 4. Work-Life Balance Initiatives: ○ Encourages fitness and wellness programs to promote physical and mental health. 15.+16. Leadership: Chapter 9 9.1+9.2 Leaders born or made? What is Leadership? 1. Definition: ○ Leadership involves influencing others to achieve organizational goals. ○ Effective leadership enhances prod  ○ uctivity, innovation, satisfaction, and commitment within a workforce. ○ Leaders motivate individuals to commit to achieving goals, changing how they think, feel, and act. 2. Types of Leadership: ○ Strategic Leadership: Ability to anticipate, envision, and adapt to changes. Focuses on creating a sustainable competitive advantage. Engages with stakeholders, prioritizes long-term goals, and drives organizational performance. ○ Formal Leadership: Based on assigned roles like managers or supervisors. Requires influence beyond the formal role to be effective. ○ Emergent Leadership: Informal leadership without official authority. Influences through perception and acceptance as a leader by peers. ○ Shared Leadership: Leadership is distributed among team members. Enhances team creativity, performance, and cohesion. Are Leaders Born or Made? 1. Trait Theory of Leadership: ○ Leadership is influenced by inherent traits such as intelligence, self-confidence, motivation, and sociability. ○ Assumes that certain traits distinguish leaders from non-leaders. 2. Key Leadership Traits: ○ Intelligence, energy and drive, emotional stability, honesty, integrity, motivation to lead, and sociability. 3. Research on Traits: ○ Extroversion and conscientiousness are consistently linked to leadership success. ○ Narcissism can have both positive (e.g., innovation) and negative (e.g., unethical practices) effects. Limitations of the Trait Approach: 1. Trait-Cause Ambiguity: ○ Unclear whether traits lead to leadership or leadership roles develop traits. 2. Bias and Stereotypes: ○ Focus on traits can reinforce biases (e.g., gender or racial stereotypes). ○ Leadership categorization often favors individuals who match prototypical leader characteristics. 3. Overlooking Context: ○ Situations require different leadership skills, which traits alone cannot address. ○ Effective leadership depends on behavior and situational adaptability, not just traits. Key Concepts for Leadership Effectiveness: 1. Behavioral Approaches: ○ Actions and adaptability are more critical than traits. ○ Leadership involves learning and improving through experience. 2. Motivation to Lead (MTL): ○ A key factor for leadership emergence and effectiveness. ○ Desire to lead and expand influence is crucial for success. 3. Learnable Leadership: ○ Leadership skills and behaviors can be taught and developed. Practical Applications: Strategic leaders like Catherine Tait at CBC need to focus on navigating turbulent environments by creating sustainable and adaptable strategies.  Emergent leadership highlights the importance of informal influence in teams, especially when formal leadership is absent. Shared leadership shows that distributing responsibilities enhances team performance and fosters innovation. 9.3 Behaviours of Leaders 1. Consideration and Initiating Structure Consideration: ○ Reflects the leader's approachability, personal concern, and respect for employees. ○ Characteristics: Friendly, egalitarian, supportive, and protective of group welfare. ○ Consequences: Strongly linked to follower satisfaction (job satisfaction and motivation) and leader effectiveness. Initiating Structure: ○ Focuses on organizing group tasks to achieve goals. ○ Characteristics: Clear role definitions, standardized procedures, and assigning tasks. ○ Consequences: Slightly more strongly related to leader performance and group performance. Key Points: ○ Leaders can be high, low, or average on either dimension. ○ Both contribute positively to employees' motivation, satisfaction, and leader effectiveness. 2. Consequences of Consideration and Structure Both behaviors are associated with positive employee outcomes (motivation, satisfaction, performance). Consideration: More related to employee satisfaction and motivation. Initiating Structure: More related to leader and group performance. Situational Relevance: Importance of behaviors depends on task characteristics, employee needs, and work setting. 3. Leader Reward and Punishment Behaviors Leader Reward Behavior: ○ Provides positive reinforcement such as compliments, tangible benefits, and special treatment. ○ Contingent Reward: Rewards tied to performance expectations result in high satisfaction and productivity. ○ Consequences: Positive effects on trust, job satisfaction, effort, and organizational commitment. Leader Punishment Behavior: ○ Uses reprimands or unfavorable outcomes like demotions. ○ Non-Contingent Punishment: Random or inconsistent punishments lead to dissatisfaction and negative outcomes. ○ Contingent Punishment: Associated with better employee perceptions and attitudes but challenging to use effectively. Key Takeaways: ○ The effectiveness of reward and punishment depends on their contingency (link to performance). ○ Contingent approaches foster perceptions of justice and reduce ambiguity, enhancing organizational outcomes. 9.4 Situational Therories of Leadership Situational Theories of Leadership Leadership effectiveness depends on the situation, including employee characteristics, task nature, and organizational context. Leadership styles should adapt to these situational factors to maximize effectiveness. Fiedler's Contingency Theory 1. Core Idea:  ○ Leadership effectiveness depends on the match between a leader’s orientation and situational favorableness. 2. Leadership Orientation (Measured by LPC - Least Preferred Co-worker Score): ○ High LPC: Leaders value interpersonal relations (relationship-oriented). ○ Low LPC: Leaders focus on task completion (task-oriented). ○ LPC score reflects a leader’s motivational structure, not competence or consideration. 3. Situational Favorableness: ○ Determined by: Leader-member relations: Trust and respect between leader and group. Task structure: Clarity and definition of tasks. Position power: Authority to reward or punish. ○ Favorable situations: Good relations, structured tasks, strong authority. ○ Unfavorable situations: Poor relations, ambiguous tasks, weak authority. 4. Application: ○ Task-oriented leaders (low LPC) excel in very favorable or very unfavorable situations. ○ Relationship-oriented leaders (high LPC) are more effective in moderate favorableness. House's Path-Goal Theory 1. Core Idea: ○ Leaders enhance employee satisfaction and performance by clarifying the path to goals and removing obstacles. 2. Leader Behaviors: ○ Directive: Clear guidelines and expectations; useful for ambiguous tasks. ○ Supportive: Friendly, approachable; builds relationships. ○ Participative: Involves employees in decision-making. ○ Achievement-Oriented: Sets challenging goals and expresses confidence. 3. Situational Factors: ○ Employee Characteristics: High achievers prefer achievement-oriented leadership. Employees with low confidence benefit from supportive and directive styles. ○ Work Environment: Routine tasks: Directive style may seem redundant. Ambiguous tasks: Directive and participative styles clarify expectations. Stressful or dissatisfying jobs: Supportive leadership enhances morale. 4. Principle: ○ Leadership should either enhance motivation by aligning with employees’ needs or compensate for job-related challenges. 9.5 Participative Leadership: Involving Employees in Decisions Definition: ○ Involves employees in making work-related decisions. ○ Participation is intentional and relative, varying in degrees. ○ Ranges from soliciting opinions (minimal participation) to allowing employees full decision-making freedom (maximal participation). Spectrum of Participation: ○ Exhibit 9.4 shows a continuum from Boss-Centered Leadership to Employee-Centered Leadership: 1. Manager announces decision. 2. Manager "sells" decision. 3. Manager invites questions. 4. Manager presents tentative decision, seeks suggestions. 5. Manager presents problem, seeks input, makes decision. 6. Manager defines limits, allows group to decide. 7. Employees function autonomously within defined limits.  Applications: ○ Individual participation: Best for performance reviews, planning employee development, and addressing individual issues. ○ Group participation: Ideal for team decisions like vacation scheduling, resource allocation, and coverage planning. Advantages of Participative Leadership 1. Motivation and Performance: ○ Increases employee motivation by involving them in goal-setting and decision-making. ○ Enhances intrinsic motivation, job satisfaction, and autonomy. ○ Associated with higher task performance and trust in supervisors. 2. Quality: ○ Participation often improves decision quality through collective input and knowledge sharing. ○ Especially useful when employees have technical expertise that the leader lacks. 3. Acceptance: ○ Improves acceptance of decisions, especially where fairness or perceived equity is critical. ○ Public involvement can address potential dissatisfaction. Challenges of Participative Leadership 1. Time and Energy: ○ Soliciting input and conducting discussions takes significant time and effort. ○ Not ideal for urgent decision-making (e.g., emergency situations). 2. Loss of Power: ○ Leaders may fear losing control or influence. ○ Flatter hierarchies often demand shared power structures. 3. Lack of Receptivity or Knowledge: ○ Employees may distrust leadership or lack the knowledge needed to make informed contributions. ○ External constraints may limit employee input. Vroom and Jago’s Situational Model of Participation Objective: ○ Helps leaders decide when and to what extent participative leadership should be used. ○ Focuses on balancing decision quality, commitment, and efficiency. Levels of Participation: ○ AI: Leader decides using available information. ○ AII: Leader gathers information from employees, decides alone. ○ CI: Leader consults employees individually, makes the decision. ○ CII: Leader consults employees as a group, makes the decision. ○ GII: Group discusses and decides; leader supports and implements the decision. Decision Tree (Exhibit 9.5): ○ Guides leaders to the appropriate level of participation based on: Quality Requirement (QR): Importance of decision quality. Commitment Requirement (CR): Importance of subordinate commitment. Leader’s Information (LI): Availability of necessary information. Problem Structure (ST): Degree of problem clarity. Commitment Probability (CP): Likelihood of subordinate acceptance if leader decides alone. Goal Congruence (GC): Alignment of goals between leader and employees. Subordinate Conflict (CO): Likelihood of conflict over solutions. Subordinate Information (SI): Employees’ ability to contribute to a high-quality decision. Key Takeaways Advantages: ○ Encourages motivation, improves decision quality, and fosters acceptance. Disadvantages: ○ Time-consuming and may not suit all employees or situations. Situational Use: ○ Participation level depends on the problem's complexity, urgency, and the team's expertise and alignment. 9.6 Leader-Member Exchange (LMX) Theory 1. Core Concept: ○ Focuses on relationships between leaders and employees. ○ Relationships evolve over time and vary in quality. 2. Key Features: ○ High-Quality LMX: High trust, mutual respect, and open communication. Employees are motivated to perform beyond their job descriptions. ○ Low-Quality LMX: Minimal trust and support. Employees stick to formal role requirements. 3. Social Exchange Theory: ○ Favors reciprocity: Positive treatment by leaders encourages commitment and performance. 4. LMX Differentiation: ○ Refers to variations in LMX quality among employees in the same team. ○ Implications: High differentiation can harm group harmony. 5. Research Evidence: ○ High-quality LMX is linked to better performance, job satisfaction, and organizational citizenship behavior (OCB). ○ LMX differentiation’s effects depend on whether differentiation is based on merit or favoritism. Transactional Leadership 1. Definition: ○ Based on clear exchange relationships. ○ Rewards employees for meeting goals. 2. Key Practices: ○ Management by Exception: Active: Proactively addresses issues. Passive: Reacts after problems occur. 3. Research Evidence: ○ Positively linked to performance and OCB due to contingent rewards. Transformational Leadership 1. Definition: ○ Inspires followers by creating a vision beyond transactional exchanges. ○ Elevates motivation, performance, and morale. 2. Key Behaviors: ○ Intellectual Stimulation: Encourages innovation and new ideas. ○ Individualized Consideration: Treats employees uniquely, fostering personal development. ○ Inspirational Motivation: Provides compelling visions and optimism. ○ Charisma (Idealized Influence): Builds trust and loyalty through personal values and behavior. 3. Research Evidence:  ○ Strongly linked to satisfaction, motivation, and organizational commitment. ○ Most effective during change and uncertainty. Comparison of Leadership Styles Transactional Leadership: ○ Focus on structured exchanges. ○ Suitable for stable environments and meeting short-term goals. Transformational Leadership: ○ Focus on vision and innovation. ○ Ideal for times of change and uncertainty. 9.7 Theories of Positive Leadership 1. Focus: ○ Emphasizes ethical and moral behavior and interpersonal dynamics. ○ Aims to increase followers’ confidence and foster positive outcomes like motivation, self-development, and prosocial behavior. 2. Four Theories: ○ Empowering Leadership ○ Ethical Leadership ○ Authentic Leadership ○ Servant Leadership Empowering Leadership 1. Definition: ○ Enables employees to share power, make decisions, and act autonomously. 2. Key Characteristics: ○ Highlights the importance of employees' work. ○ Encourages participation, autonomy in decision-making, and a sense of psychological ownership. 3. Outcomes: ○ Increases competence, self-determination, and belief in impact. ○ Associated with higher self-efficacy, adaptability, creativity, and socialization of employees. 4. Research Insights: ○ Positively affects creativity, employee satisfaction, and task performance. ○ Improves teamwork and socialization among new employees. Ethical Leadership 1. Definition: ○ Leaders demonstrate appropriate behavior (e.g., honesty, fairness) through actions, relationships, and communication. 2. Key Practices: ○ Rewards ethical behavior and disciplines unethical behavior. ○ Considers consequences and acts in society's best interests. 3. Outcomes: ○ Positively linked to trust, job satisfaction, organizational commitment, and performance. ○ Enhances psychological well-being and employee engagement. 4. Prevention vs. Promotion: ○ Promotion-Focused: Encourages ethical behavior. ○ Prevention-Focused: Discourages unethical behavior. 5. Influence of Organizational Climate: ○ Ethical policies and practices shape employee perception and workplace behavior. Authentic Leadership 1. Definition: ○ Involves being true to oneself and acting in alignment with values and beliefs. 2. Key Behaviors: ○ Self-Awareness: Knowing strengths, weaknesses, and impacts. ○ Relational Transparency: Openly sharing thoughts and feelings. ○ Balanced Processing: Objective analysis of information before decisions. ○ Internalized Moral Perspective: Acting consistently with personal values. 3. Case Example: ○ Maple Leaf Foods CEO Michael McCain demonstrated authentic leadership during a crisis by prioritizing public accountability. 4. Outcomes: ○ Leads to higher trust, engagement, satisfaction, and citizenship behavior among followers. ○ Positively impacts team performance and cohesion. Servant Leadership 1. Definition: ○ Focuses on serving others, prioritizing the growth and well-being of followers and the community. 2. Key Characteristics: ○ Empowering Others: Promoting personal and professional development. ○ Humility: Supporting others’ contributions and interests. ○ Authenticity: Acting consistently with true feelings and values. ○ Interpersonal Acceptance: Understanding and accepting others’ emotions. ○ Providing Direction: Offering clear guidance while considering followers’ needs. ○ Stewardship: Acting for the common good over self-interest. 3. Outcomes: ○ Builds trust, enhances job satisfaction, and improves performance. ○ Encourages employees to exhibit helping behaviors and commitment. 4. Research Findings: ○ Associated with positive perceptions of fairness and ethical behavior. ○ Linked to organizational citizenship behaviors and transformational leadership. 9.8 Gender and Leadership: Key Findings Gender Differences in Leadership Styles Contrasting Theories: ○ No universal differences in leadership style based on gender. ○ Some studies highlight that women may adopt a more democratic and collaborative style, while men may focus on hierarchy and task orientation. Research Insights: ○ Women tend to use transformational leadership more than men, emphasizing motivation, inspiration, and team cohesion. ○ Men engage in more transactional leadership behaviors and exhibit laissez-faire leadership (passivity, avoidance of responsibility), negatively affecting leadership effectiveness. Leadership Effectiveness and Perceptions Perceptions of Effectiveness: ○ Women are often perceived as more effective in male-dominated organizations and environments emphasizing communal traits (e.g., care, empathy). ○ Men are rated higher when peers assess leadership effectiveness. Challenges in Perceived Effectiveness: ○ The evaluation process can reflect biases rooted in stereotypes about gender roles. Barriers to Women in Leadership Structural Barriers:  ○ Limited representation in senior leadership positions (e.g., women hold only 26% of CEO roles globally). ○ Persisting issues such as long work hours, informal recruitment practices, and the "glass ceiling" (better termed as a "labyrinth"). Role Congruity Theory (RCT): ○ Women face prejudice due to a perceived mismatch between communal traits (care, empathy) and the agentic traits (assertiveness, decisiveness) associated with leadership roles. Strategies to Improve Women’s Representation in Leadership Organizational Actions Increase awareness of psychological biases and challenge stereotypes. Change workplace norms, such as reducing long work hours and ensuring objective performance evaluations. Use open recruitment tools instead of informal networks to fill leadership roles. Ensure a critical mass of women in executive positions to prevent tokenism. Create family-friendly policies, including parental leave and flexibility. Encourage male participation in caregiving roles to balance work-family dynamics. Key Focus Areas Build social capital and networks for women leaders. Prepare women with appropriately demanding roles to gain experience for senior leadership. Address work-life balance challenges, ensuring flexible options for employees with caregiving responsibilities. 9.9 The GLOBE Project: Overview Purpose: To explore cultural impacts on leadership effectiveness. Scope: ○ Involved 170 researchers. ○ Data from over 17,000 managers across 62 societal cultures. Outcome: ○ Identification of nine cultural dimensions and 10 culture clusters. Cultural Dimensions (Exhibit 9.8) 1. Performance Orientation: Encouraging and rewarding performance improvement. 2. Future Orientation: Planning and investing for the future. 3. Assertiveness: Degree of assertiveness and competitiveness. 4. Humane Orientation: Encouraging fairness, altruism, and kindness. 5. Institutional Collectivism: Encouraging collective resource action. 6. In-Group Collectivism: Expressing loyalty and pride in organizations. 7. Gender Egalitarianism: Promoting gender equality and minimizing gender role differences. 8. Power Distance: Accepting unequal power distributions. 9. Uncertainty Avoidance: Relying on norms to reduce unpredictability. Implicit Leadership Theory Leadership perception depends on culturally shared beliefs about effective attributes. GLOBE identified: ○ 6 Global Leadership Dimensions: 1. Charismatic/Value-Based: Inspiring and motivating based on core values. 2. Team-Oriented: Promoting team collaboration and unity. 3. Participative: Involving others in decisions. 4. Humane-Oriented: Showing compassion and generosity. 5. Autonomous: Self-reliant and independent leadership. 6. Self-Protective: Ensuring individual security and safety. Cultural Variations in Leadership Leadership traits differ significantly across clusters: ○ North America (e.g., USA, Canada): High on charismatic, participative, and humane-oriented attributes; low on self-protective/autonomous. ○ Other clusters vary in preferences. Cultural Views of Leadership Effectiveness (Exhibit 9.9) 1. Universal Facilitators: ○ Trustworthiness, justice, honesty. ○ Encouraging and motivational behaviors. ○ Coordinating and team-building abilities. 2. Universal Impediments: ○ Being uncooperative and egocentric. ○ Imposing personal views. 3. Culturally Contingent Attributes: ○ Individualism, status consciousness, and risk-taking vary by culture. Key Implications for Global Leaders Cultural dimensions and leadership effectiveness are culturally contingent. Attributes successful in one culture may fail in another. Effective global leaders understand both universal and culturally specific traits. 9.10 Global Leadership 1. Definition: ○ Global leadership involves leading effectively across different cultures and political, social, and economic borders. ○ Requires the ability to influence people from diverse cultural backgrounds and who are not like the leader. 2. Key Characteristics of Global Leaders: ○ Unbridled inquisitiveness ○ Personal character ○ Duality ○ Savvy Global mindset. High tolerance for ambiguity. Cultural adaptability and flexibility. 3. Importance: ○ Essential for success in multinational organizations. ○ Critical success factor for navigating diverse cultural and organizational contexts. 4. Example: ○ Linda Hasenfratz, CEO of Linamar Corporation, exemplifies global leadership: Expanded operations globally. Innovated during the COVID-19 pandemic by producing ventilators. Recipient of the Ivey Business Leader Award for her contributions. 5. Country Influence on Global Leadership: ○ Some countries (e.g., Canada, Singapore, Netherlands) produce more global leaders due to their reliance on foreign trade and multicultural environments. ○ Canadians’ ability to take other perspectives is a key strength in global leadership. What Style of Leadership Is Best? 1. "It Depends":  ○ Leadership effectiveness depends on the ability to employ various styles of leadership depending on the situation. 2. Situational Theories: ○ Leadership style effectiveness depends on: Task characteristics. Organization and employee traits. National culture. 3. Versatility in Leadership: ○ Effective leaders blend transformational and transactional approaches. ○ Strategic and transformational leadership are especially crucial in uncertain and complex environments. 4. Influence on Followers: ○ Leaders must impact: Cognitive mechanisms (e.g., self-efficacy). Affective mechanisms (e.g., emotions, attitudes). Behavioral mechanisms (e.g., actions, motivation). 5. Matching Style to Situation: ○ Effective leadership involves aligning leadership style with situational factors to enhance employee, group, and organizational performance. Exhibit 9.10: Leadership Styles and Effectiveness 1. Situational Factors: ○ Task, organizational, and employee characteristics, and national culture. 2. Leadership Styles: ○ Includes consideration, participative, transformational, servant, global, and strategic leadership styles. 3. Leadership Mechanisms: ○ Cognitive (e.g., decision-making). ○ Affective (e.g., emotional climate). ○ Behavioral (e.g., actions motivated by leadership). 4. Effectiveness: ○ Impacts employee performance, group performance, and organizational outcomes. 17. Communication: Chapter 10 10.1 Basics of Organizational Communication Definition of Communication Communication: Exchange of information between sender and receiver. Process involves: ○ Encoding: Sender translates thoughts into a transmittable form. ○ Decoding: Receiver interprets the message. ○ Feedback: Receiver confirms message understanding. Challenges arise when: ○ Messages are ambiguous or emotional. ○ Encoding or decoding fails. Effective Communication Occurs when the right people receive the right information at the right time. Violations lead to ineffective communication. Communication by Strict Chain of Command Structure: Based on organizational hierarchy. ○ Downward Communication: Flows top-down (e.g., instructions from VP to workers). ○ Upward Communication: Flows bottom-up (e.g., feedback from workers to VP). ○ Horizontal Communication: Between departments for coordination. Deficiencies in the Chain of Command 1. Informal Communication: ○ Chain of command ignores informal networks (e.g., social media). ○ Informal interaction fosters innovation and efficiency. 2. Slowness: ○ Formal chain is slow, especially for horizontal communication. ○ Inadequate for urgent problem-solving. ○ Short-circuit systems (e.g., Boston I-PASS) address these issues. 3. Filtering: ○ Messages get diluted or stopped during transmission. ○ Causes: Fear of repercussions (upward filtering). Negligence or sabotage (downward filtering). ○ Filtering leads to decision-making issues. 10.2 Voice, Silence, and the Mum Effect Factors Contributing to Voice 1. Employee Voice: ○ Refers to the constructive expression of disagreement or concerns about work/organizational practices. ○ Can be directed horizontally (to peers) or vertically (to management). ○ Encourages organizational learning and change, but perceived risks (e.g., power differentials) can discourage speaking up. 2. Who Speaks Up? ○ Employees satisfied with work and those strongly identifying with the organization are more likely to voice concerns. ○ Extroverted and conscientious employees are more inclined to speak up. ○ Support from direct supervisors and higher-level managers is crucial for creating an environment conducive to constructive dissent. 3. Positive Outcomes of Speaking Up: ○ Psychological safety fosters a belief that taking social risks (e.g., voicing concerns) is safe. ○ "High voicers" report less work stress compared to those who remain silent. Factors Contributing to Silence 1. Self-Censorship: ○ Implicit reasons for silence: Fear of attacking the boss’s ideas. Perception of lacking data to speak up. Avoidance of embarrassing the boss or seeming uncooperative. 2. The Mum Effect: ○ Tendency to avoid communicating unfavorable news to others, especially superiors. ○ Rooted in fear of negative reactions or personal association with the bad news. ○ Examples: Employees aiming for promotions may withhold negative feedback to maintain a favorable image. Subordinates often avoid delivering bad news to bosses perceived as difficult. Organizational Impact of Silence 1. Case Study: Nokia: ○ Managers’ reluctance to challenge optimistic views led to poor decisions in the smartphone market. ○ Highlighted the mum effect in withholding bad news from top management. 2. Broader Consequences:  ○Mitsubishi Materials' scandal involved employees hiding quality control data, leading to product failures. 3. Managerial Behavior: ○ Even bosses exhibit the mum effect, avoiding the upward transmission of bad news to superiors. 10.3 The Grapevine Definition: Informal communication network within organizations. Operates outside official channels and is primarily verbal. Can include emails and social media. Features: 1. Transmission of Information: ○ Travels through word of mouth or informal networks. ○ Often quicker than formal channels. 2. Diversity in Grapevines: ○ Multiple grapevines may exist within an organization, connected by shared roles or locations. 3. Accuracy: ○ About 75% of non-controversial, organization-related information shared via grapevine is accurate. ○ Personal or emotionally charged information is more prone to distortion. Who Participates and Why? Key Participants: Extroverts: ○ Likely to share information to gain social or personal advantages. Workers with high traffic exposure ○ Individuals in physical or virtual locations with frequent interactions (e.g., IT troubleshooters or centralized offices). Low Self-Esteem Individuals: ○ May share information to feel valued or influential. Roles Involving Movement: ○ Employees who interact widely (e.g., delivery personnel, technicians) are key transmitters. Motivations: 1. Efficiency: ○ Quick access to information unavailable in formal systems. 2. Power Dynamics: ○ Provides informal influence across hierarchies. 3. Emotional Expression: ○ Outlet for frustrations or delicate matters. 4. Social Stimulation: ○ Offers engagement and intellectual interest, particularly in monotonous jobs. Pros and Cons of the Grapevine Advantages: 1. Timely Updates: ○ Keeps employees informed of critical changes (e.g., job security). 2. Testing Ground: ○ Management can gauge reactions to proposed changes without formal announcements. 3. Supplements Formal Communication: ○ Fills gaps where official communication is lacking. Disadvantages:  1. Spread of Rumors: ○ Susceptible to distortion, especially in emotionally charged or ambiguous contexts. 2. Lack of Verification: ○ Information is often unverified, reducing reliability. 3. Potential Distrust: ○ Excessive reliance on grapevine can harm formal communication trust. 4. Amplification of Anxiety: ○ Spreads faster in high-stress scenarios or when stakes are high. Factors Increasing Rumor Spread: 1. Ambiguity or lack of clear communication from leadership. 2. Emotional sensitivity of the subject matter. 3. Anxiety levels of recipients. 10.4 The Verbal Language of Work Jargon Jargon is specialized language developed in specific occupations (e.g., "OB" for organizational behavior). Advantages: ○ Facilitates efficient communication. ○ Provides a status symbol for those proficient in it. Challenges: ○ Can be a barrier for interdepartmental communication. ○ Intimidates or confuses those outside the organization. ○ Example: Pharmaceutical terms like "placebo control" or IT terms like "PC." Humor Benefits: ○ Enhances positive emotions, creativity, and stress reduction. ○ Facilitates leader-subordinate relationships and feedback. ○ Helps with message acceptance and emotional connection. Limitations: ○ Inappropriate humor reduces credibility and engagement. ○ Aggressive humor undermines trust and productivity. The Non-Verbal Language of Work Non-Verbal Communication Includes body language, facial expressions, and physical proximity. Conveys powerful messages, often more subtly than verbal communication. Example: Raised eyebrows or abrupt movements. Body Language Key Indicators: ○ Leaning forward, maintaining eye contact (interest). ○ Relaxation in posture (status). Employment settings value positive body language but may also evaluate non-verbal cues critically. Props, Artifacts, and Costumes Office Decor: ○ Communicates professionalism, openness, or personality traits (e.g., neatness = conscientiousness). ○ Examples of categories: Family photos: Balanced but not ambitious. Awards: Hard-working, accomplished. Messy desks: Easy-going but unprofessional. Does Clothing Communicate? Clothing as a Signal:  ○ Sends cues about competence, status, and professionalism. ○ Conventional business attire communicates authority. Red Sneaker Effect: ○ Nonconformity in professional contexts (e.g., casual clothing) signals autonomy and confidence if perceived as intentional. Impact on Self-Perception: ○ Proper attire boosts self-esteem and perceived competence. ○ Studies show well-dressed individuals are often more successful in interviews. 10.5 Gender Differences in Communication 1. Overview: ○ Deborah Tannen identifies gender-based differences in communication styles. ○ These differences often begin in childhood and persist into professional environments. ○ Women often see conversations as tools for connection and intimacy, while men use them for status and competition. 2. One-Up, One-Down Position: ○ Women prioritize equality and rapport-building, aiming to avoid hierarchical positions. ○ Men focus more on hierarchical dynamics, often seeking to establish or maintain a "one-up" position. Specific Differences and Their Impact: 1. Getting Credit: ○ Men are more likely to "self-promote" or highlight their achievements. ○ Women tend to downplay their successes, leading to less recognition. 2. Confidence and Boasting: ○ Men often appear more confident because they speak positively about their abilities. ○ Women minimize doubts but may downplay their competence, which can lead to perceptions of lower confidence. 3. Asking Questions: ○ Men hesitate to ask questions as it may signal vulnerability or inferiority. ○ Women ask questions more readily, using them as tools for clarification or rapport. 4. Apologies: ○ Women use apologies ("I’m sorry") to express empathy or concern. ○ Men often interpret apologies as admissions of weakness. 5. Feedback: ○ Women tend to cushion criticism with praise to maintain rapport. ○ Men prefer direct and blunt feedback, focusing on the core critique rather than surrounding commentary. 6. Compliments: ○ Women are more likely to provide compliments as a way to build connections. ○ Men may interpret compliments as direct evaluations or critique. 7. Ritual Opposition: ○ Men engage in verbal sparring or debate to test ideas and establish camaraderie. ○ Women may interpret such interactions as aggressive or confrontational. 8. Managing Up and Down: ○ Men value communicating with superiors more strategically to manage upward. ○ Women often prioritize communication with peers and subordinates, reflecting their focus on equality. 9. Indirectness: ○ Women may frame requests indirectly to avoid imposing on others. ○ Men prefer direct communication, viewing indirectness as unclear or inefficient. Practical Implications for the Workplace: Misunderstanding these differences can lead to communication breakdowns:  ○ Women’s tendency to soften criticism might be seen as lack of seriousness. ○ Men’s direct feedback may come off as abrasive or insensitive to women. ○ Women’s frequent apologies can be misconstrued as a lack of confidence or authority. Example: A woman’s indirect request for help might be misinterpreted as optional or unclear by a male colleague. Conclusion: Understanding and acknowledging gender-based communication styles can mitigate misunderstandings and improve workplace interactions. Recognizing these patterns helps in fostering an inclusive and effective communication environment. 10.6 Non-Verbal Communication Across Cultures 1. Facial Expressions: ○ Humans are adept at decoding basic emotions (anger, surprise, sadness, etc.) across cultures. ○ Examples include Americans, Japanese, and Indigenous people in New Guinea accurately identifying similar emotions in photographs. ○ However, cultural differences in collectivist societies (e.g., Japan) discourage overt expressions of negative emotions, which may hinder communication. 2. Gestures: ○ Gestures often add context and understanding to verbal communication. ○ Literal mimicry (e.g., "Sign here") translates better across cultures than abstract gestures. ○ Gestures may involve symbolic meanings that differ widely across cultural contexts. Let me continue refining and detailing the remaining sections. ​ Refined Notes on Cross-Cultural Communication Non-Verbal Communication Across Cultures 1. Facial Expressions: ○ People across cultures can recognize basic emotions such as anger, surprise, fear, and sadness. ○ Example: Americans, Japanese, and Indigenous people from New Guinea show similar accuracy in identifying emotions in photographs. ○ However, in collectivist cultures (e.g., Japan), overt expressions of negative emotions are less socially acceptable, leading to possible misinterpretations in communication. 2. Gestures: ○ Gestures enhance understanding but vary significantly across cultures. ○ Literal gestures (e.g., pointing to a document or mimicking actions) are more universally understood compared to symbolic gestures. ○ Example: In Greece, a thumbs-up is considered an insult, whereas in the U.S., it signals approval. Gestures like the "OK" sign can also have different connotations depending on the culture. 3. Gaze: ○ Eye contact norms differ: In Latin America and Arab countries, direct eye contact signifies attentiveness and respect. In North America, it is common but context-dependent. In East Asia, prolonged eye contact may be considered impolite. Etiquette and Politeness Across Cultures 1. Differing Interpretations: ○ Politeness expressions vary. For example, British speakers may call something "interesting," intending criticism, whereas North Americans might take it as a neutral comment.  ○ Example: A North American boss asking, "Would you like to calculate those figures for me?" may be interpreted as an invitation rather than a polite command. 2. Cultural Nuances in Politeness: ○ Chinese modesty often involves denying compliments ("No, no, my wife is ugly") to show humility, which could be misinterpreted in North American contexts. ○ Japanese indirect communication (e.g., "That will be very difficult" instead of "No") is intended to maintain harmony but might be seen as evasive by others. Social Conventions Across Cultures 1. Greetings and Formalities: ○ Greeting styles vary: North Americans ask, "How are you?" as a casual greeting, not expecting detailed responses. In Arab cultures, greetings often include detailed inquiries about family and well-being. 2. Loudness and Tone: ○ Cultures like the United Kingdom value quieter communication, perceiving louder tones as aggressive. ○ In contrast, Middle Eastern cultures may view a quieter demeanor as lacking confidence. 3. Punctuality and Time Perception: ○ North Americans and Japanese place high value on punctuality. ○ In Brazil, being late can be perceived as a sign of prioritizing relationships over rigid schedules, potentially misinterpreted by others. Cultural Context: High vs. Low Context Cultures 1. Low-Context Cultures (e.g., Germany, North America, Australia): ○ Communication is explicit, relying on detailed and direct messages. ○ Preference for compartmentalized, precise instructions. ○ Example: Americans' "straight talk" approach contrasts with high-context communication styles. 2. High-Context Cultures (e.g., Japan, Arab nations): ○ Rely on implicit communication, drawing meaning from context, relationships, and non-verbal cues. ○ Example: A Japanese manager's indirect expression may signal a deeper meaning understood only within the cultural context. Key Takeaways: Cross-cultural communication challenges arise due to differences in language, gestures, norms, and contextual interpretation. Strategies to deter miscommunication include: ○ Being aware of cultural norms and values. ○ Avoiding literal interpretations without considering cultural context. ○ Learning key non-verbal and verbal cues from other cultures. 10.7 Computer-Mediated Communication (CMC) Definition: Use of digital technology to facilitate communication. Information Richness: Potential of a medium to carry information effectively. ○ High Richness: Face-to-face (presence, body language, immediate feedback). ○ Medium Richness: Phone (audio, but no visual cues). ○ Low Richness: Emails, memos (one-way, text-based). Strengths: Speed: Text-based media (e.g., emails, messages) are fast and efficient. Convenience: Avoids physical presence. Weaknesses:  Lack of Non-verbal Cues: Difficulty interpreting tone, body language. Miscommunication: Especially in emails or asynchronous channels. Communication Media Continuum (Exhibit 10.4) Physical to Digital: 1. Face-to-Face: High synchronicity, rich non-verbal cues. 2. Digital (Web 1.0): Email, video calls; more latency, fewer cues. 3. Social Media (Web 2.0): Public platforms (e.g., Facebook); highly interactive. Key Features: Synchronicity: Real-time communication (e.g., video conferencing). Permanence: Emails are permanent; chats can be ephemeral. Anonymity: Some platforms allow anonymous communication. Social Media in Organizations Benefits: ○ Enhances knowledge sharing and collaboration. ○ Creates interactive networks for engagement. Challenges: ○ Cyberloafing: Non-work-related social media use. ○ Cyberbullying: Negative interactions harming relationships. ○ Blurred lines between work and personal life. Private Enterprise Social Media: Used within organizations (e.g., Workplace by Facebook). Focus on controlled communication and collaboration. Effectiveness in Communication Synchronous Media: ○ Better for resolving conflicts and ensuring clarity (e.g., Skype). Asynchronous Media: ○ Emails work for routine, non-urgent tasks but risk misunderstandings. Best Practices for CMC 1. Use richer media (e.g., video calls) for: ○ Important decisions. ○ Emotionally charged discussions. ○ Controversial messages. 2. Avoid resolving conflicts over text. 3. Leverage social media judiciously: ○ Recognize its potential for innovation and collaboration. ○ Set boundaries to prevent misuse (e.g., formal policies). 10.8 Personal Approaches to Improving Communication Importance: Communication skills are as critical as technical or job-specific skills. Consequences: Poor communication can lead to resistance, defensiveness, or hostility. Basic Principles of Effective Communication 1. Take the Time: ○ Prioritize direct, face-to-face interactions over impersonal methods for important matters. 2. Be Accepting: ○ Show empathy and understand others' perspectives, even if you disagree with their actions. 3. Separate the Person from the Problem: ○ Address issues objectively rather than assigning blame.  4. Say What You Feel: ○ Be honest and congruent, aligning words, feelings, and actions. 5. Listen Actively: ○ Techniques: Maintain eye contact and body language. Paraphrase for clarity. Show empathy. Ask open-ended questions. Allow pauses without interruptions. 6. Give Feedback: ○ Be timely, specific, and constructive. Storytelling in Communication Benefits: Engages the audience, conveys values, stimulates change, and delivers memorable messages. Usage: Stories can educate, motivate, or provide a “soft touch” to directives. Medium: Best delivered face-to-face for maximum impact. Cross-Cultural Communication 1. Assume Differences: ○ Expect cultural differences unless proven otherwise. 2. Recognize Intra-Cultural Differences: ○ Avoid stereotyping and acknowledge diversity within cultures. 3. Adjust Language: ○ Speak clearly, avoid jargon, and ensure mutual understanding. Organizational Approaches to Improving Communication 1. Employer Branding: ○ Promotes organizational values and a positive image to attract and retain employees. ○ Use precise and truthful communication to avoid mistrust. 2. Provision of Explanations: ○ Detailed and transparent explanations for decisions enhance perceived fairness and acceptance. Feedback Mechanisms 1. 360-Degree Feedback: ○ Includes feedback from subordinates, peers, and customers for holistic performance evaluation. 2. Employee Surveys: ○ Gather opinions anonymously to inform organizational improvements. (counted as an UPWARDS MEAN OF COMMUNICATION) 3. Suggestion Systems: ○ Encourage innovative ideas with incentives for useful suggestions. Technological Tools 1. Telephone Hotlines: ○ Facilitate anonymous communication for ethical or operational concerns. 2. Webcasts: ○ Enable interactive and scalable communication, suitable for updates and training. 18. Organizational Culture and Organizational Change 8.5 Organizational Culture  Definition: The shared beliefs, values, and assumptions that guide behaviors in an organization. Impacts attitudes, behaviors, and performance of employees. Shapes organizational identity and social cohesion. What is Organizational Culture? Informal View: Style, atmosphere, or "personality" of the organization. Formal View: Shared values, assumptions, and beliefs that guide norms and behavior. Characteristics: ○ Represents a "way of life." ○ Provides stability and continuity. ○ Can include internal (risk-taking, secrecy) and external (customer orientation) matters. Influences both performance and satisfaction. Organizations may develop subcultures based on departments or roles. Strong Culture Concept Definition: Shared beliefs and values that are deeply ingrained and widely shared across the organization. Advantages: ○ Provides clarity about "what the organization is about." ○ Leads to a unified vision and coherent goals. Examples: ○ Hilti Canada: Emphasizes goal achievement and celebrates success. ○ Google Canada: Focuses on collaboration and a flat hierarchy. ○ Shopify: Encourages innovation and team collaboration. Assets of Strong Cultures 1. Coordination: Enhances communication and alignment across functions. 2. Conflict Resolution: Shared values provide mechanisms for resolving disputes. 3. Financial Success: Correlation with organizational performance and financial growth. Liabilities of Strong Cultures 1. Resistance to Change: ○ Strong cultures may resist necessary adaptation. ○ Examples: IBM’s mainframe culture; Oracle’s aggressive sales approach. 2. Culture Clash: ○ Mergers or acquisitions often lead to clashes between incompatible cultures. ○ Examples: HBC and Towers merger; HP and Compaq merger. 3. Pathology: ○ Toxic cultures based on secrecy, dishonesty, or risk-taking harm the organization. ○ Examples: Enron and WorldCom’s unethical practices. NASA’s overconfidence leading to the Columbia disaster. 8.6 1. Contributors to the Culture Key Question: How are cultures built and maintained within organizations? Main Factors: ○ Founder’s Role: Founders significantly shape organizational culture through their values and leadership. ○ Socialization: Ongoing process where employees learn the organization's values, beliefs, and assumptions.  Example: The vignette of Steam Whistle Brewing highlights how an organization sustains and reinforces its culture. 2. The Founder’s Role Founders leave a lasting imprint on organizational culture through their values and vision. Examples: ○ Walt Disney at Disney, Sam Walton at Walmart, Ray Kroc at McDonald’s. ○ Louis Gerstner, Jr. (IBM CEO, 1993–2002) shifted IBM from a conformity-focused culture to one valuing diversity and individuality. Cultural Longevity: Founders’ influence perpetuates through: ○ Stories and folklore. ○ Organizational practices that reinforce core values. 3. Socialization Importance: Ensures alignment of new hires with the organization’s culture. Process: ○ Organizations with strong cultures emphasize structured socialization steps. ○ Weak cultures often lack coherent integration processes. Steps in Strong Cultures (Exhibit 8.7): ○ Start: Careful candidate selection. ○ Deselection: Removal of unsuitable candidates. ○ Training: Focus on core skills. ○ Rewards and Reinforcement: Aligning behavior with cultural expectations. ○ Reinforcing Folklore and Role Models: Strengthen cultural identity and adherence. 4. Seven-Step Socialization Process 1. Selecting Employees: Identify those aligning with cultural values (e.g., Google Canada interviews). 2. Debasement: Humbling experiences encourage openness to organizational norms. 3. Training in the Trenches: Immersive, hands-on learning of core organizational tasks. 4. Reward and Promotion: Encourage and recognize behaviors aligning with cultural values. 5. Exposure to Core Culture: Reinforcing the organization’s beliefs and values. 6. Organizational Folklore: Stories that highlight key cultural elements. 7. Role Models: Leaders embody and reinforce the culture. 5. Pascale's Observations Consistency: The mutual reinforcement of socialization steps creates strong cultures. Example – Disney: ○ Rigorous selection processes. ○ Cultural grooming (mild debasement). ○ Performance-linked promotions. ○ Folklore (e.g., “Walt’s in the park”). ○ Training at “Disney University” emphasizes role modeling. 8.7 Diagnosing a Culture Key Concept: Culture is the "way of life" for organizational members and can be challenging for outsiders to interpret. Method: Examine symbols, rituals, and stories that define the organization's way of life. These elements: ○ Teach and communicate the company’s culture. ○ Reinforce shared values among insiders. Symbols  Definition: Objects, behaviors, or practices with symbolic meanings that reflect the organization’s culture. Examples: ○ Chaparral Steel Company (Texas): Employees walk through the HR department to reach lockers, symbolizing the importance of human resources. ○ IBM: "Respect for the individual" was a core value but was shaken by layoffs. ○ Wells Fargo (CEO Carl Reichardt): Used symbolism to reinforce fiscal austerity (e.g., using a tatty chair during budget discussions). Key Takeaway: Symbols powerfully communicate values and priorities. Rituals Purpose: Convey the essence of a company’s culture through rites, ceremonies, and activities. Examples: ○ Coast Capital Savings Credit Union: Executives dressed in costumes during recognition events, reflecting fun and lightheartedness. ○ Flight Centre: Monthly "buzz nights" celebrate achievements, emphasizing energy and fun. ○ Mary Kay Cosmetics: Hollywood-style seminars reinforce the company’s aspirational and motivational culture. ○ Disney: Picnics and beach parties reflect a youthful, peer-oriented environment. Variations: Rituals can range from celebratory to evaluative (e.g., annual reviews). Stories Function: Stories communicate "how things work" in an organization and reinforce culture. Examples: ○ Steam Whistle Brewing: Uses storytelling to emphasize its values. ○ Rocky Mountain Soap Company: Core value stories are shared at meetings and displayed at all locations. ○ McDonald's: A story about founder Ray Kroc canceling a franchise for a single fly in the restaurant highlights a value of cleanliness. Common Themes in Stories: ○ Is the boss approachable or human? ○ Can the underdog succeed? ○ Will the organization support employees during life changes? ○ How does leadership react to mistakes or challenges? Key Takeaway: Stories often feature a "good" or "bad" version to illustrate values and consequences. 15.1 The Concept of Organizational Change Environmental Forces Motivating Change: ○ Transition to smartphone shopping forced companies like Shopify to adopt mobile-first strategies. ○ Ride-hailing services like Uber and Lyft reduced airport revenues from parking and ground transport, leading to adjustments in airport economics. ○ Social media platforms (YouTube, Instagram) shifted cosmetic companies’ advertising from traditional media to social media. Impact of Change: ○ Changes such as smartphone shopping, ride-hailing, and social media advertising affect customer satisfaction and organizational strategy. ○ Effective management of change determines whether its impact is positive or negative. Why Organizations Must Change  Sources of Pressure to Change: ○ External Sources: Global economy, deregulation, and advanced technology increase competitiveness. Mergers, acquisitions, and joint ventures demand responsiveness to competition. ○ Internal Sources: Low productivity, conflict, and absenteeism indicate a need for internal changes. Employee dissatisfaction or opinions (e.g., public blogs) can drive change. Perception of Threat and Change: ○ Threats can "unfreeze" organizations, encouraging solutions. ○ Without preparation or resources, organizations risk inertia instead of proactive change. Dynamic Environments: ○ Organizations in rapidly changing environments must adapt more frequently to remain effective. ○ Excessive or insufficient change can lead to inefficiencies and employee cynicism. What Organizations Can Change Key Areas for Change: ○ Goals and Strategies: Adjustments to meet new markets or improve competitiveness (e.g., Samsung’s shift to innovative products). ○ Technology: Introduction of enterprise tools or flexible manufacturing. ○ Job Design: Altering roles to increase autonomy or efficiency. ○ Structure: Shifts from functional to product-based or centralized to decentralized structures. ○ Processes: Modifying how tasks are executed (e.g., concurrent vs. sequential project stages). ○ Culture: Transforming values and behaviors to improve competitiveness. ○ Branding: Rebranding to align with external perception or internal identity shifts. ○ People: Changing team composition or skill levels through hiring and development. Systemic Nature of Change: ○ A change in one domain often requires adjustments in others, demonstrating interconnected impacts. The Change Process Kurt Lewin’s Model: ○ Unfreezing: Recognizing unsatisfactory current conditions. Crisis events (e.g., lawsuits, sales drops) often trigger unfreezing. Requires a shared vision to mobilize organizational stakeholders. ○ Change: Implementation of new strategies or programs, ranging from minor to major adjustments. Examples: job enrichment, restructuring, or market expansion. ○ Refreezing: Integrating new behaviors into the organization’s culture. Establishing policies and routines to sustain change. Requirements for Successful Change: ○ Capability, opportunity, and motivation among employees are essential. ○ Incentive systems and innovation support should align with the change. Refreezing Challenges Hyper-Turbulent Environments: ○ Industries like software, nanotechnology, and biotech demand continuous adaptation.  ○ Organizations must become "learning organizations" capable of seamless transitions. Sustaining Change: ○ Changes must align with organizational strategy to avoid regression. ○ Emphasizes balance between dynamic adjustment and operational stability. 15.2 The Learning Organization Definition: Organizational learning is the process of acquiring, developing, retaining, and transferring knowledge. Methods of Learning: 1. Knowledge Acquisition: Collecting and interpreting external knowledge. 2. Knowledge Development: Creating internal knowledge through dialogue and experience. 3. Knowledge Distribution: Sharing and spreading knowledge within the organization. Characteristics of Learning Organizations Organizations that have processes and systems to facilitate learning, retention, and knowledge transfer. A learning organization is adaptable to new challenges and capable of “unlearning” outdated systems. Learning from Failure Organizations learn better from failures than successes. Success may be misinterpreted and overlooked, while failures encourage problem-solving and reflection. Example: Coca-Cola celebrates failures as learning opportunities. Key Dimensions of Learning Organizations 1. Vision/Support: ○ Leaders set a clear vision and highlight learning as a priority. ○ A Chief Knowledge Officer may oversee this process. 2. Culture: ○ Encourages knowledge sharing, risk-taking, experimentation, and continuous learning. 3. Learning System/Dynamics: ○ Employees are encouraged to collaborate, make decisions, and “learn by doing.” ○ Methods: Job rotation, cross-functional teams, coaching, and post-project debriefs. 4. Knowledge Management Infrastructure: ○ Systems for acquiring, storing, and distributing knowledge. ○ Integration of people, processes, and technology. ○ Example: Knowledge portals for sharing experiences, solutions, and expertise (e.g., reusable code). Benefits of Learning Organizations Higher profitability and retention rates compared to non-learning organizations. Singapore Airlines: ○ Focus on codifying knowledge to improve customer service, leading to innovations like in-flight email. Failure Example: Sears ○ Failed to adapt catalog operations to the digital age, leading to its decline despite historical success. 15.3 Issues in the Change Process Stages of Change 1. Unfreeze → Change → Refreeze ○ Process involves: Diagnosis, Resistance, Evaluation, Institutionalization. Diagnosis Definition: Collecting information to understand problems and decide on changes. Change Agents: Professionals who assist in the change process using behavioral science. Methods: ○ Surveys ○ Observation ○ Interviews Importance: ○ Clarifies problems and identifies solutions. ○ Prevents copying ineffective programs from other firms. Resistance Definition: Failure to support or accept change. Causes of Resistance: ○ Politics & Self-Interest: Fear of losing power or status. ○ Low Tolerance for Change: Cognitive rigidity, discomfort with new routines. ○ Lack of Trust: Doubt about leadership motives. ○ Different Assessments: Belief that proposed change is unnecessary. ○ Strong Emotions: Helplessness, stress, anger. ○ Organizational Identification: Strong identification with existing norms. ○ Resistant Organizational Culture: Preference for stability. ○ Multiple Incompatible Changes: Overlapping initiatives. Exhibit 15.3: Effects of Organizational Change Change increases negative outcomes (e.g., stress, health problems): ○ Chronic Work Stress: Recent/Current Changes: 55% Anticipated Changes: 37% No Changes: 22% ○ Physical Symptoms & Job Interference: Also significantly higher during change. Exhibit 15.4: Identity Gap and Acceptance of Change Identity Gap: The gap between current and desired organizational identity. ○ Narrow Gap: Change seen as unnecessary (High Inertia). ○ Moderate Gap: Ideal for acceptance (Change Acceptance Zone). ○ Wide Gap: Change perceived as unattainable (High Stress). Time and Resistance (Exhibit 15.5) Reactions to Change: 1. Champions: Early adopters, strong support. 2. Doubters: Resist from the beginning. 3. Converts: Initially resistant but later support change. 4. Defectors: Start supportive but turn resistant. Dealing with Resistance Methods to Overcome Resistance: ○ Supportive supervision for individuals with low tolerance. ○ Incentives or special roles for those reluctant due to politics/self-interest. ○ Clear communication to reduce misunderstandings and build trust.  ○ Involving employees in planning and execution of change. Role of Transformational Leaders: ○ Overcome resistance by encouraging new ideas. ○ Foster trust and counter employee cynicism. Evaluation and Institutionalization Evaluation Measures: ○ Reactions: Did participants like the change? ○ Learning: What knowledge was acquired? ○ Behavior: Observable job behavior changes. ○ Outcomes: Productivity, absenteeism, etc. Institutionalization: ○ Integrates change into the organizational system. ○ Challenges: Poor planning, lack of proper rewards, weak evaluation. 19. Ethics in Organizations Chapter 12.6-EndOfChap 12.7 1. Defining Ethics and Ethical Dilemmas Ethics: Systematic thinking about moral consequences of decisions. Moral Consequences: Potential for harm to stakeholders. Stakeholders: Individuals/organizations affected by decisions, including decision-makers and bystanders. Key Ethical Issues: Gender-based harassment highlighted in Canadian Federal Court decisions. Managers often face pressure to compromise ethical standards. Ethical vigilance is needed due to systemic failures. 2. Ethical Misconduct Observed by Employees Top Observed Issues: 1. Abusive behavior (18%) 2. Lying to employees (17%) 3. Conflict of interest (12%) 4. Discrimination (12%) 5. Health and safety violations (10%) Key Insights: High Visibility: Internal conflicts like abusive behavior are more observable. Lower Visibility: Bribery, falsifying financial info, and external misconduct are less reported (harder to detect). 3. Ethical Themes for Managers 1. Honest Communication: Avoid slanting reports; label actions clearly. 2. Fair Treatment: Respect sealed bids; no favoritism or scapegoating. 3. Special Consideration: Modify "fair" treatment for long-standing employees or disabled workers. 4. Fair Competition: Avoid price-fixing and bribery. 5. Responsibility to Organization: Prioritize the company's good over personal interests. 6. Corporate Social Responsibility: Reduce pollution and support community welfare. 7. Respect for Law: Follow both the letter and spirit of labor laws. 4. Causes of Unethical Behavior Bounded Ethicality: Ethical blind spots arise from focus, pressure, and ignoring warning signals.  Personality: ○ Cynicism, Machiavellianism, and external locus of control predict unethical behavior. ○ Disengaged individuals are less ethical; morally attentive individuals spot issues better. Gain: Temptation for rewards (e.g., Bernie Madoff's Ponzi scheme, high compensation systems). Extreme Pressure: Unrealistic goals (e.g., “stretch goals”) can lead to unethical choices (TD Bank, Wells Fargo). 5. Role Conflict Managers’ ethical dilemmas stem from conflicting roles: ○ Example: Challenger disaster—engineers’ professional roles conflicted with organizational pressure. Rewards like commissions can intensify conflict between personal gain and ethical behavior. 6. Strong Organizational Identification Employees who strongly identify with their organization may: ○ Cover up ethical violations. ○ Ignore lapses to “help” the organization. 7. Competition Intense competition for resources can drive unethical actions: ○ Example: Price-fixing in folding-carton packaging. ○ Defense industry monopolies can exploit taxpayers. ○ Law enforcement competition may escalate ethical breaches. 8. Ethical Focus: Boeing’s 737 Max Tragedy: 346 deaths due to flawed MCAS system and cost-cutting decisions. Key Causes: ○ Profit-driven incentives to bypass new aircraft certification. ○ Failure to address pilot retraining needs. ○ Ignoring internal warnings and concerns. 9. Organizational and Industry Culture Culture and Role Models: Leaders' behaviors set norms for ethics. Reward Systems: Commission-based incentives can prioritize profits over ethics. Solution: Specific and enforced ethics codes bolster ethical culture; vague rules risk fostering corruption. Ethical Screening Guidelines The purpose of ethical guidelines is to help in the systematic evaluation of decisions, ensuring moral implications are thoroughly considered without causing decision paralysis. Key Steps: 1. Identify Stakeholders: ○ Determine who will be affected by a decision. 2. Analyze Costs and Benefits: ○ Assess how decision alternatives impact stakeholders. 3. Consider Moral Expectations: ○ Use relevant norms, laws, organizational codes, and ethical principles like: Honest communication Fair treatment 4. Understand Ethical Dilemmas: ○ Recognize common ethical challenges in specific roles or professions. 5. Discuss Ethical Matters: ○ Engage stakeholders and others in ethical discussions. 6. Take Action:  ○ Implement ethical judgments into appropriate actions. Impact of Ethical Guidelines Purpose: ○ Recognize ethical issues ○ Make sound ethical judgments ○ Translate these judgments into ethical behaviors Training and Education in Ethics Significance: ○ Popular in business schools and organizations. ○ Evidence shows ethical training positively influences moral reasoning and ethical behavior. 12.8 Sexual Harassment—When Power and Ethics Collide Definition Sexual harassment is “behaviour that derogates, demeans, or humiliates an individual based on their sex”. It includes: ○ Touching, sexual force, sexist jokes, comments, and materials. ○ Need not contain explicit sexual content but is based on one's sex. ○ Forms include: Psychological (emotionally threatening) Social (e.g., ridicule) Legal (affecting livelihood). Forms of Sexual Harassment 1. Abuse of Power: ○ Managers, supervisors, or those in dominant positions may exploit power to: Request sexual favors or leverage them for employment decisions. ○ Co-workers, though on similar levels, may also engage in harassment due to subtle power imbalances. 2. Hostile Work Environments: ○ Certain work cultures (e.g., military, entertainment, technology) perpetuate societal gender power imbalances. ○ Examples include: Ford (workplace lawsuits in male-dominated environments). Silicon Valley (settlements for gender-related harassment). Uber (high-profile harassment cases due to a reported toxic culture). 3. Clients and Customers: ○ Customer service roles often see harassment when clients hold economic power over employees. ○ Professional women, particularly minorities, face higher rates of harassment. 4. "Deaf Ear Syndrome": ○ Organizational inaction or complacency toward harassment complaints leads to underreporting. ○ Example: CBC Radio handling Jian Ghomeshi complaints poorly. Preventive and Responsive Measures Organizations can adopt the following strategies: 1. Establish visible top management support: ○ Promote an ethical climate that stands against harassment. 2. Create state-of-the-art policy: ○ Clearly define harassment and outline sanctions for offenders. 3. Establish clear reporting procedures:  ○ Ensure user-friendly processes for complaints while protecting privacy. 4. Take immediate action: ○ Delay in addressing harassment worsens consequences for victims and the organization. 5. Examine characteristics of "deaf ear" organizations: ○ Identify and eliminate traits that lead to complacency. 6. Foster education: ○ Implement training for managers and employees on recognizing and addressing harassment, including bystander intervention. 7. Stay vigilant: ○ Monitor and remove harassment-promoting factors (e.g., gender-based teasing). 8. Hire and promote women: ○ Increase gender balance in leadership roles to reduce the likelihood of harassment. Key Takeaways Sexual harassment stems from power imbalances and thrives in cultures that tolerate it. A proactive approach involving strong policies, education, immediate response, and cultural shifts is essential to combat harassment. High-profile cases illustrate that ignoring harassment damages organizational reputation and employee well-being. 20. Power and Politics Chapter 12.1-12.6 12.1 What Is Power? Definition: Power is the capacity to influence others who are in a state of dependence. Key Insights: 1. Capacity ≠ Exertion: Power isn’t always exercised or perceived. Example: Professors have power over students (e.g., grades) but may rarely use it. 2. Dependence ≠ Poor Relationship: Reciprocal influence occurs when people depend on each other (e.g., friends). 3. Power Flow: Power can flow upward in organizations, not just downward. Example: A junior auditor with compromising information on a CEO may hold power. 4. Power Asymmetry: Power doesn’t require hierarchy. Algorithms, like in e-commerce (e.g., Uber, Airbnb), also create power asymmetry. 5. Broad Concept: Power exists at both individual and group levels. Example: A marketing department may influence decisions more than other departments. The Bases of Individual Power Sources of Power: According to psychologists John French and Bertram Raven, power comes from positions in organizations or control of resources. Types of Power: ○ Legitimate Power: Position-based authority. ○ Reward Power: Providing rewards or positive outcomes. ○ Coercive Power: Use of punishment and threats. ○ Referent Power: Influence due to being well-liked or admired.  ○ wer: Influence based on specialized knowledge or expertise. Legitimate Power Definition: Power derived from a person’s position or job; often referred to as "authority." Key Features: ○ Higher organizational levels = more legitimate power. ○ Hierarchies like military emphasize legitimate power, while universities downplay it. ○ Socialization: Legitimate power often works because people are trained to accept it (e.g., following boss directives). Reward Power Definition: Power from the ability to offer rewards (raises, promotions, praise). Key Insights: ○ Often supports legitimate power. ○ Employees respond positively to rewards, but excessive use can align with coercive power. Example: Strong reward power combined with coercive power led to problems at TD Bank and Wells Fargo. Coercive Power Definition: Power from the ability to punish or threaten (e.g., dock pay, block promotions). Key Insights: ○ Often linked with legitimate power. ○ Managers using coercive power face resistance and ineffectiveness. Example: Coercive power caused issues at TD Bank and Wells Fargo. Referent Power Definition: Power stemming from being liked or admired. Key Features: ○ Identification with the power holder enhances influence. ○ Potent because it generates voluntary compliance. ○ Charismatic leaders often rely on referent power. Note: Anyone in an organization can possess referent power, not just leaders. Expert Power Definition: Power from specialized knowledge or expertise valued by the organization. Key Insights: ○ Hard to replace individuals with expert power. ○ Lower-level employees, like administrative assistants, often hold expert power through experience. Example: A well-published scholar holds more expert power than a new lecturer. Gender Note: Women managers are more likely to rely on expert power. Employee Responses to Power Continuum of Cooperation: Employees respond to power in different ways: ○ Resistance: Coercive power. ○ Compliance: Legitimate and reward power. ○ Commitment: Referent and expert power. Key Point: Referent and expert power generate the highest employee commitment, while coercive power leads to resistance. 12.2 How Do People Obtain Power? Section 12.2: Explain how people obtain power in organizations  Rosabeth Moss Kanter’s key recipe for obtaining power: ○ Do the right things ○ Cultivate the right people Doing the Right Things Kanter argues that certain activities are better for obtaining power: 1. Extraordinary Activities ○ Routine performance is insufficient for obtaining power. ○ Extraordinary activities involve unusual or non-routine tasks that bring visible results. ○ Examples include: Reorganizing positions Implementing major changes Taking big risks (e.g., directing a major new program) ○ Success in these tasks can bring substantial power. 2. Visible Activities ○ Extraordinary efforts must be visible to gain power. ○ Those interested in power are skilled at making their efforts noticeable. ○ Examples: Executives whose success is highlighted in Fortune. Innovative surgeons whose techniques are published. 3. Relevant Activities ○ Activities must address important organizational problems to be impactful. ○ Extraordinary and visible work is meaningless if it is seen as irrelevant. ○ Example: An English professor winning prizes at a struggling college may not gain power. In a different setting, the same achievements could generate influence. Cultivating the Right People Relationships with key individuals can help acquire power. 1. Outsiders ○ Building relationships with influential people outside the organization can increase internal power.