Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12 C H
A
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Leadership,
Developing Applications
?DESCRIBE the Vroom-Jago leadership model,
?DISCUSS the attribution theory approach to
leadership,
?DESCRIBE what constitutes charismatic
leadership,
?COMPARE transactional and transformational
leadership,
?IDENTIFY the major issues in multicultural
leadership,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-2
Effective Leadership For
Tomorrow’s Organizations
Three Important Dimensions
Processing Knowledge
Finding and disseminating knowledge
Building Trust
Trust others as well as be trusted
Using Power Sensitively
Appropriately exercising power
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-3
Vroom-Jago Leadership Model
?Based on the Vroom-Yetton Model
?Normative model or set guidelines
?Situations determine appropriateness of
degrees of participative decision-making
?No one single leadership style was
appropriate
?Leader needs to be flexible to change
styles to fit specific situations
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-4
Vroom-Jago Leadership Model,
Critical Components
Specification of the criteria by which decision
effectiveness is judged
A framework for describing specific leader
behaviors or styles
Key diagnostic variables that describe important
aspects of the leadership situation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-5
Vroom-Jago Leadership Model,
Decision Effectiveness
Decision Effectiveness Criteria
?Decision Quality
?The extent to which the decision
impacts job performance
?Subordinate Commitment
?How important it is that subordinates
be committed to or accept the decision
?Other - Time considerations
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-6
Vroom-Jago Leadership Model,
Decision Styles
Two Types of Decision Situations,
? Individual
? Group
Five Different Decision Styles
? Autocratic (A) - The leader makes the decision without input
from subordinates,
? Consultative (C) - Subordinates have some input,but you make
the decision,
? Group (G) - The group makes the decision; you (as leader) are
just another group member,
? Delegated (D) - You give exclusive responsibility to
subordinates,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-7
SITUATIONAL DIAGNOSIS
Vroom-Jago Leadership Model,
Diagnostic Procedure
Pose a series of questions about the situation,
? How important is the technical
quality of the decision?
? How important is subordinate
commitment to the decision?
? Do you have sufficient information
to make a high quality decision?
? Is the problem well structured?
? If you were to make the decision by
yourself,is it reasonably certain
that your subordinates would be
committed to the decision?
? Do subordinates share the
organizational goals to be
attained in solving this problem?
? Is conflict among subordinates
over the preferred solutions
likely?
? Do subordinates have sufficient
information to make a high-
quality decision?
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-8
Vroom-Jago Leadership Model,
Validity Issues
? Lacks complete empirical evidence establishing
its validity,
? Thought to be consistent with what we know
about the benefits of subordinate participation in
decision making,
? Its value as a theoretical contribution and as a
practical tool have yet to be fully developed,
? May falsely suggest that leaders always make
decisions in a linear fashion,
? Fails to consider the impact of the time element,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-9
Follower
behavior
Attribution Theory of Leadership
? Leaders are essentially information processors
? Leaders search for informational,cues”
? Leaders attempt to construct causal explanations to
guide behavior
Leader
behavior
Leader
attributions
Individuals are assumed to be rational and concerned
about the causal linkages in their environments
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-10
Attribution Theory of Leadership
Causal Attribution
of Poor Quality
Internal causes
?Low effort
?Low commitment
?Lack of ability
External causes
?Improper equipment
?Unfair deadlines
Linkage
#1
Information Cues
?Distinctiveness
?Consistency
?Consensus
Observation of
Poor Quality or
Production
?Rejects
?Excess scrap
?Returned products
?Excessive production
costs
Linkage
#2
Leader Behavior
in Response to
Attributions
?Reprimand
?Transfer
?Demotion
?Redesign job
?Personal concern
?Training
Perceived Source of
Responsibility
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-11
Leader Behavior,Cause or Effect
? Results of one recent field study suggests that,
? Leader consideration behavior causes subordinate
satisfaction
? Follower performance causes changes in leader’s emphasis
? Further examination of,reciprocal causation” needed
? Reciprocal causation - leader behavior causes follower
behavior and vice versa
Overall,research on the cause-effect
issues is still quite limited,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-12
Charismatic Leadership
A leader who creates an atmosphere of motivation based
on an emotional commitment and identity to his or her
vision,philosophy,and style on the part of followers,
Visionary Charismatic Leaders
? Having the ability to see both the big picture and the
opportunities the big picture presents,
Crisis-Based Charismatic Leaders
? Having an impact when faced with situations lacking
adequate knowledge,resources,or procedures
TWO TYPES,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-13
TRANSFORMATIONAL
LEADERSHIP
Transactional and
Transformational Leadership
?The leader helps the
follower identify what must
be done to accomplish the
desired results,
?Better quality output
?More sales or services
?Reduced cost of
production
?The leader persuades
followers to work hard to
achieve the goals envisioned,
?The leader’s vision provides
the follower with motivation
for hard work that is self-
rewarding (internal)
TRANSACTIONAL
LEADERSHIP
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-14
Transactional Leadership
L = Leader
F = Follower
L,Clarifies how F’s need
fulfillment will be exchanged
for enacting role to attain
designated outcomes
F,Recognizes value of
designated outcomes (need-
fulfilling value for F)
L,Recognizes what
F needs
F,Feels confidence in
meeting role
requirements
L,Clarifies F’s
role
L,Recognizes what F
must do to attain
designated outcomes
F,Develops
motivation to attain
desired outcomes
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-15
Transformational Leadership
Individual attention
Charisma
Intellectual stimulation
Contingent reward
Management by exception
Five
Descriptive
Factors
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-16
Coaching
Everyday interaction of helping another
employee improve his or her understanding
of the work and improve performance,
Tips on How to Coach and Lead
?Practice active listening,
?Support learning,
?Move from easy to hard skills,
?Set goals,
?Provide tactful feedback,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-17
Multicultural Leadership
Overall,in the global context,an inability exists to
generalize the leadership needed to be effective,
Cross-Cultural Research Suggests That,
? Leadership attributes associated with successful
leadership results vary across cultures (e.g.,Bass et al.)
? Leadership style in countries exhibiting one set of
cultural dimensions culture may be counterproductive
in those exhibiting other sets (e.g.,Hofstede)
? Serious doubts exist regarding the generalizability or
transferability of good leadership across national and
cultural boundaries
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-18
Multicultural Leadership
Bass Proposed Seven Factors Linked to
Cross-Cultural Leadership Effectiveness,
Preferred awareness,
Actual awareness,
Submissiveness,
Reliance on others,
Favoring of group decision-making,
Concern for human relations,
Cooperative peer relations,
Leader skills and abilities comprise only one
variable in the leadership context,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
13 C H
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Communication
?EXPLAIN the elements in the communication process,
?COMPARE the four major directions of
communication,
?DESCRIBE the role played by interpersonal
communication in organizations,
?DISCUSS multicultural communication,
?IDENTIFY significant barriers to effective
communication,
?DESCRIBE ways in which communication in
organizations can be improved,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-20
Communication Defined
The transmission of information and
understanding through the use of
common symbols from one person to another,
? Common symbols may be
? Verbal
? Nonverbal
? Direction may be
? Up and down (Vertical)
? Across (Horizontal)
? Down and across (Diagonal)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-21
The Communication Process
Communicator
Who…
Feedback
…,with what effect
Receiver
to whom…,
Medium
in what way…,
Message
says what…,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-22
How Communication Works
?Experts suggest that effective
communication is the result of a
common understanding between,
?The communicator
?The receiver
?The word communication is
derived from the Latin
communis,meaning,common.”
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-23
A Communication Model
Communicator Message Medium Receiver
Feedback
… =
Noise
….,….,….,….,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-24
The Elements of Communication
Communicator
?Employee with ideas,intentions,
information,and a purpose
Encoding
?Translate the communicator’s
ideas into a language expressing
the purpose
Message
?What the individual hopes to
communicate
?Verbal and nonverbal
?Intended and unintended
Medium
?Carrier of the message
Decoding-Receiver
?Interpretation of the message
Feedback
?Channel to determine whether
the message was received and
produced the intended response
Noise
?Factors that distort the intended
message
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-25
Feedback
One-Way Communication
Does not allow receiver-to-
communicator feedback
Two-Way Communication
Provide for receiver-to
communicator feedback
Direct Feedback
Face-to-face verbal and
nonverbal exchanges may
express communication
breakdowns
Indirect Feedback
Signals like declines in
productivity may indicate
communication breakdowns,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-26
Nonverbal Messages or
Communication
? Includes physical cues like,
? Head,face,and eye movements
? Posture,dress,distance,gestures and voice tone
? Some such messages are spontaneous and unregulated
? Other messages conscious and deliberately presented
? Differs from other communication forms because it
? May be difficult to suppress
? Is more apparent to observers than people producing them
? Can be susceptible to multiple interpretations
Information sent by a communicator that is
unrelated to the verbal information
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-27
Communicating Within
Organizations
Horizontal
Communication
Communication
that flows across
functions in an
organization,
Like between
finance and sales
Downward
Communication
Communication
that flows from
individuals in
higher levels of the
organization’s
hierarchy to those
in lower levels,
Official memos,
policies,procedures
Upward
Communication
Communication
that flows from
individuals at
lower levels to
those at higher
levels,
Suggestion boxes,
group meetings
Diagonal
Communication
Communication
that cuts across
functions and
levels in an
organization,
Project avoiding
traditional channels
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-28
Communicating Externally
To present products and services,to project a positive
image,to attract employees,and to gain attention,
FOUR DISTINCT PROGRAMS,
Public Relations
Advertising
Promotion
Customer/Client/Patient Surveys
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-29
Information Richness
Information richness involves how much
information can be effectively transmitted,
Low High
Memo Face-to-face
RICHNESS
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-30
Information Technology
? The Internet covers a wide range of services
and information technologies,
? An intranet is a private protected electronic
communication system within an organization,
? E-mail is transmitting messages through
personal computers,
? Voice mail links a telephone system to a
computer and digitizes and store incoming
messages,
? Videoconferencing and Teleconferencing refer
to technologies associating with viewing and
speaking,
? Electronic Meetings use networked computers
to automate meetings,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-31
Interpersonal Communications
Communication flows from individual to individual
in face-to-face and group settings,
?Can vary from direct orders to casual expressions,
?Influences how people feel about the organization,
?Problems arise from perceptual differences and
interpersonal style differences,
?Research suggests that over 90 percent of meaning
results from nonverbal cues,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-32
EFFECTIVE MULTICULTURAL
COMMUNICATION MEANS,
?Familiarize themselves with significant cultural differences that
might affect the communication process,
?Make a conscious,concerted effort to lay aside ethnocentric
tendencies,
?Maintain a posture of,knowing they do not know.”
Multicultural Communication
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-33
Barriers to Effective Communication
? Frame of reference
? Interpretation differences
depending on previous
experiences
? Selective Listening
? Perception
? Interpretation
? Evaluation
? Action
? Value Judgments
? Assigning overall worth
prior to receiving entire
message
? Source Credibility
? Trust,confidence,and faith
in receiver
? Filtering
? Manipulation of information
so the receivers perceive it
as positive
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-34
Barriers to Effective Communication
? In-Group Language
? Words,phrases that have meaning only to group
members
? Status Differences
? Hierarchical ranking expressed through various symbols
? Time Pressures
? May result in short-circuiting
? Communication Overload
? Causes individuals to screen out the majority of
messages
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-35
Improving Communications
in Organizations
Message
?Follow up
?Principle of
sufficiency
?Empathy
?Repetition
?Encouraging
?Mutual trust
?Effective timing
?Simplifying
?Language
?Utilizing feedback
?Using the grapevine
Encoding Communicator
Field of Experience
Receiver Decoding
Field of Experience
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
14 C H
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Decision Making
?CONTRAST programmed with nonprogrammed
decisions,
?IDENTIFY the steps in the decision-making process,
?DISCUSS priority setting,
?DESCRIBE the conditions governing alternative-
outcomes relationships,
?EXPLAIN the role of behavioral influences on decision
making,
?COMPARE individual and group decision making,
?IDENTIFY specific techniques for stimulating
creativity,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-37
Types of Decisions
Repetitive and routine
decisions and where a
definitive procedure is
developed to handle them,
Novel and unstructured
decisions required for
unique and complex
management problems,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-38
Attributes of of Decisions
? Decisions should be thought of as a means
rather than ends,
? Decisions are the organizational
mechanism through which an attempt is
made to achieve a desired state,
? Decisions are,in effect,an organizational
response to a problem,
? Every decision is the outcome of a dynamic
process influenced by many forces,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-39
A Rational Decision-Making
Process
Establishing
specific goals and
objectives and
measuring results
Problem
identification and
definition
Establishing
priorities Revise Revise
Consideration
of causes
Development of
alternative
solutions
Evaluation of
alternative
solutions Revise Revise
Implementation Follow-up
Revise Revise
Solution
Selection
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-40
Problem Identification
and Definition
Defining Problems in Terms of Solutions
Identifying Symptoms as Problems
Factors Affecting Problem Identification,
Perceptual Problems
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-41
Involves Considering Three Issues,
Urgency
Relates to time,
Impact
Seriousness of the problem’s effects,
Establishing Priorities
Growth Tendency
Addresses future considerations,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-42
Alternative-Outcome
Relationship
POSSIBLE CONDITIONS
Certainty
Complete knowledge of the probability of
the outcome of each alternative,
Uncertainty
Absolutely no knowledge of the
probability of the outcome of each
alternative,
Risk
Some probabilistic estimate of the
outcomes of each alternative,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-43
Bounded Rationality
Assumptions
? Rarely have all necessary or desired information
? Unaware of all alternatives or consequences
? Early adoption of solutions due to limitations common
? Organizational goals constrain decision-making
? Conflicting constituents’ goals can force compromises
March and Simon’s administrative decision-
making model depicts decision-makers as
? Operating with incomplete information
? Affected by their cognitive abilities
? Impacted by psychological and sociological factors
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-44
Intuitive Decision-Making
Using experience,self-confidence,and
self-motivation to process information,
data,and the environment or address
a problem or opportunity,
Contributing Factors,
? High levels of uncertainty
? No history or past experience to draw upon
? Intense time pressures
? Excessive number of alternatives
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-45
Behavioral Influences
Values Potential for Dissonance
Propensity
for Risk
Escalation of
Commitment
Cultural Context
Decision-
Making
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-46
Cognitive Dissonance
Conditions contributing to anxiety,
? Psychological and financial importance of
decision
? Number of foregone alternatives
? Number of favorable features of foregone
alternatives
Lack of consistency or harmony among
an individual’s various cognitions
after a decision has been made,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-47
Escalation of Commitment
? Need to turn a losing or poor decision into a winning
or good decision
? Found in decision makers who,
Are unclear of goals
Have a fear of failure
Are feeling pressured
Work in a low trust culture
An increasing commitment to a previous decision
when a,rational” decision maker would withdraw,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-48
Individual Versus Group
Decision-Making
More
Less
Individual Average individual Minority control Majority control Consensus
Method of Utilization of Group Resources
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-49
Creativity in Group
Decision- Making
Process by which a group,or team produces
novel and useful ideas to solve a problem
or capture and opportunity,
Perseverance Risk-taking Propensity
Openness Tolerance of Ambiguity
,Lateral thinking” characteristics,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-50
Techniques for
Stimulating Creativity
Brainstorming
The generation of ideas in a group through
noncritical discussion,
The Basic Rules,
? No idea is too ridiculous,
? Each idea presented belongs to the group,not to the
person stating it,
? No idea can be criticized,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-51
Techniques for
Stimulating Creativity
The Delphi Technique
? Solicitation and comparison of anonymous judgments
on the topic of interest,
? Use of a set of sequential questionnaires,
? Intersperses questionnaires with,
? Summarized information
? Feedback of opinions from earlier responses
? Retains the advantage of having several judges while
removing the biasing effects that might occur in face-
to-face interaction,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-52
Techniques for
Stimulating Creativity
Phase 1
? Individuals record
ideas but do not speak
Phase 2
? Structured sharing of
ideas takes place
? Output is a list of ideas
Phase 3
? Structured discussion of
each idea
Phase 4
? Independent and
confidential ranking/
voting
? Mathematically pooled
outcomes result
The Nominal Group Technique (NGT)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-53
Techniques for
Stimulating Creativity
? Delphi participants typically are anonymous to one another,
while NGT participants become acquainted,
? NGT participants meet face-to-face around the table,while
Delphi participants are physically distant and never meet
face-to-face,
? In Delphi,all communication between participants is by way
of written questionnaires and feedback from the monitoring
staff,In NGT,communication is direct between participants,
The Delphi
Technique
Nominal Group
Technique Versus
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
15 C H
A
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Organizational Structure
and Design
?IDENTIFY the choices which must be made in designing an
organization,
?DEFINE what is meant by the term division of labor,
?DISCUSS the role of delegation of authority in design decisions,
?DESCRIBE several forms of departmentalization,
?EXPLAIN the importance of span of control,
?DEFINE three important dimensions of structure,
?COMPARE mechanistic and organic organizational design,
?IDENTIFY the major advantages of matrix organizational design,
?DISCUSS multinational organizational structure and design issues,
?EXPLAIN the meaning of the term virtual organization,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-55
Organizational Structure
and Design
Organizational Design
? Purposeful and goal-oriented process
? Decisions/actions to predetermine the way employees do their work
Organizational Structure
? Relatively stable relationships and processes of the organization,
?,The anatomy of the organization,providing a foundation within
which the organization functions.”
? Purpose is to regulate,or at least reduce,uncertainty,
S u b o r d i n a t e S u b o r d i n a t e S u b o r d i n a t e
M a n a g e r
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-56
Organizational Design
Decision Process
? Managers must decide how to divide the overall tasks of the
organization into successively smaller jobs,
? Managers must decide the basis by which to group the individual jobs,
? Managers must decide the appropriate size of the group reporting to
each supervisor,
? Managers must distribute authority among the jobs,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-57
Organizational Design
Components
Components
Specialization
High Low
Division of
Labor
Number
Few Many
Span of
Control
Basis
Homogenous Heterogeneous
Departmentalization
Delegation
High Low
Authority
Design Decisions
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-58
Division of Labor
Ways that Division of Labor Can Occur,
? Work can be divided into different personal specialties,
? Occupational and professional specialties
? Work can be divided into different activities necessitated
by the natural sequence of the work the organization
does,
? Horizontal specialization
? Work can be divided along the vertical plane of an
organization,
? Hierarchy of authority
The Extent to Which Jobs Are Specialized
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-59
Reasons to Delegate or
Decentralize Authority
?Encourages management
development
?Leads to a more
competitive climate
?Enables managers to
exercise more autonomy
Delegation of Authority
Extent to which managers allow subordinates to
make decisions without approval of higher
management and exact obedience from others
Reasons to Centralize
Authority
?Increases training costs
?Heightens fear and
resistance
?Raises administrative
costs
?Duplicates efforts and
some functions
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-60
Functional Departmentalization
Major Advantage
Creating efficiency and more cost
effective units
Engineering Finance Personnel
Major Disadvantage
Sacrificing organizational goals
for departmental ones
Manufacturing
OMB
Company
Marketing
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-61
Territorial Departmentalization
Southern Eastern Rocky Mountain Pacific Midwestern
OMB
Company
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-62
Product Departmentalization
Small
Household
Appliances
Commercial
Appliances
Major Advantages
?Creating profit responsibility
?Fostering innovation and autonomy
Major Disadvantages
?Creating redundant functions
?Increasing administrative
costs
OMB
Company
Large
Household
Appliances
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-63
Customer Departmentalization
Retail
Stores
Mail
Order
Government
Contracts
OMB
Company
Institutional
Sales
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-64
Span of Control
The number of jobs to be included in a specific group
determines the frequency and intensity of interpersonal
relationships required of a manager,
Potentially Creates Three Types of Relationships,
? Direct single
? Between a manager and each subordinate individually
? Direct group
? Between a manager and each possible permutation of
subordinates
? Cross
? Between subordinates and other subordinates
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-65
Critical Factors Affecting
Span of Control
Required Contact
Degree of Specialization
Ability to Communicate
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-66
Dimensions of Structure
Formalization
The extent to which
expectations regarding the
means and ends of work are
specified,written,and
enforced,
Centralization
The location of decision-
making authority in the
hierarchy of the
organization,
Complexity
The number of distinctly different job titles,
or occupational groupings,and the number
of distinctly different units,or departments,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-67
High
Formalization
Dimensions of Structure
Dimensions Decisions
1,High specialization
2,Delegated authority
3,Functional departments
4,Wide spans of control
High
Centralization
High
Complexity
1,High specialization
2,Centralized authority
3,Functional departments
4,Wide spans of control
1,High specialization
2,Delegated authority
3,Territorial,customer,and
product departments
4,Narrow spans of control
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-68
Organization Design Models
The
Organic
Model
The
Matrix
Model
The
Mechanistic
Model
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-69
The Mechanistic Model
Organizations should function in a machinelike
way to accomplish the organization’s goals
in a highly efficient manner,
? It’s highly complex because of its emphasis on
specialization of labor,
? It’s highly centralized because of its emphasis
on authority and accountability,
? It’s highly formalized because of its emphasis on
function as the basis of departments,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-70
The Organic Model
? It’s relatively simple because of its de-emphasis on
specialization and its emphasis on increasing job
range,
? It’s relatively decentralized because of its emphasis
on delegation of authority and increasing job depth,
? It’s relatively informal because of its emphasis on
product and customer as bases for departments,
Organizations should seek designs that maximize
satisfaction,flexibility,and development,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-71
The Matrix Model
Advantages
? Efficient Use of Resources
? Flexibility in Conditions of Change and Uncertainty
? Technical Excellence
? Freeing Top Management for Long-Range Planning
? Improving Motivation and Commitment
? Providing Opportunities for Personal Development
Organizations should combine functional and
product departmental bases to maximize the
strengths and minimize the weaknesses of each,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-72
Multinational Structure and Design
?National boundaries help define organizational environments
?National boundaries are of varying importance for different
elements of organizational structure and processes,
?Subsidiaries of multinational corporations can act as conduits
that introduce changes into the host country’s environment,
?Subsidiaries of multinational corporations can act as conduits
through which features of the host country’s environment are
introduced throughout the organization,
Factors with Important Implications for
Multinational Structure and Design,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-73
Virtual Organizations
? One of the fastest developing practices in business
throughout the world,
? Involves firms in cooperative relationships with their
suppliers,distributors,and even competitors,
? Virtual units are assembled and disassembled according to
needs,
? Characteristics flexible enough to accommodate a wide
range of organizations,(See Exhibit 15.7)
A collection of geographically distributed,functionally
and/or culturally diverse aggregations of individuals
linked by electronic forms of communication,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-74
,Boundaryless Organizations”
Barrier-Breaking Features,
Creating flatter hierarchies
Increasing participative decision-making
Developing multiple-hierarchy teams
Encouraging team building
Facilitating coordination
Promoting telecommuting or teleworking
Attempts to minimize and,in some cases,
eliminate vertical and horizontal structures,
tightly defined work roles,and top-down control,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
16 C H
A
P
T
E
R
Managing Organizational
Change and Innovation
?DEFINE what is meant by organizational change management,
?IDENTIFY the major steps in undertaking organizational change
effort,
?DESCRIBE the two major types of change forces,
?DISCUSS the role of problem diagnosis in the organizational
change management,
?IDENTIFY a number of change methods and the relative depth of
intervention each represents,
?RECOGNIZE the impediments and conditions that may limit
change management effectiveness,
?DISCUSS the ethical implications of change management,
?UNDERSTAND how adopting innovation is a natural outcome in
organizations that effectively manage change,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-76
Managing Organizational
Change
? Change is an inevitable,pervasive,persistent,and
permanent condition for all organizations,
?Organizations’ futures depend on their ability to
master change,
? Effective managers must view managing planned
change as an integral responsibility,
? Contemporary managers will have to develop
approaches for adopting and implementing
innovation,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-77
Organizational Change
Approaches
Managing Change
through Reason
Managing Change
through Power
Managing Change
through Reeducation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-78
Learning Principles in
Change Management
Unfreezing old learning
? Requires people who want to learn new ways to think and act,
? Deals directly with resistance to change,
Movement to new learning
? Requires training,demonstration,and empowerment,
? Empower employees to take on new behaviors,
Refreezing the learned behavior
? Occurs through the application of reinforcement and feedback,
? Strategies designed to minimize the loss of new knowledge,
skills,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-79
Change Agents
? External Change Agents
? Temporary employees of the organization engaged only for the
duration of the change process,
? Internal Change Agents
? An individuals working for the organization who knows something
about its problems
? External-Internal Change Agents
? Designating an individual or small group within the organization to
serve with the external change agent,
Interveners bring a different perspective
to the situation and challenge the status quo
for the purpose of improving effectiveness,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-80
Individual Resistance
to Change
? Threat of a loss of position,power,and authority
? Economic insecurity
? Possible alteration of social friendships and
interactivity
? Fear of the unknown
? Failure to recognize or be informed about the need to
change
? Cognitive dissonance or discomfort created by what
is new or different
Reasons for Resistance Include,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-81
Organizational
Resistance to Change
Barriers to Change Include,
?The professional and functional
orientation of the department,unit,
or team,
?Structural inertia
?Possible threat to the
organizational power balance
?Failures at previous change
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-82
Strategies for Overcoming
Resistance to Change
Key Considerations
? Individuals and organizations must have a reason to change
? Involvement of people at all levels of the hierarchy
? Ongoing communication
? Creation of a learning organization,
Open discussion and accessibility to information
Clear vision expressed at all levels
Strong emphasis on independence,worth and importance of people
Clear goals and performance expectations
Commitment to learning
Concern for measurable results
Curiosity to try new methods
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-83
A Model For Managing
Organizational Change
? Sorting out the information that reflects the
magnitude of change forces
? Information is the basis for determining when
change is or is not needed
? Diagnosing the problem
? Identifying relevant alternative techniques
? Implementing the change
? Monitoring the change process and change results
See Exhibit 16.1
Key Management Responsibilities,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-84
Forces For Change
? Economic Forces
? Technology
? Social and Political
Change
External Forces
Internal Forces
? Process
? Behavioral
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-85
Diagnosis of a Problem
Diagnostic Questions
? What is the problem as distinct from the
symptoms of the problem?
? What must be changed to resolve the
problem?
? What outcomes (objectives) are
expected from the change,and how will
those outcomes be measured?
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-86
Diagnosis of a Problem
Data Collection Methods
?Questionnaires
?Direct observation
?Key interviews
?Workshops
?Document and record
examination
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-87
Selection of Appropriate Methods
Structural Approaches
Managerial actions that attempt to improve effectiveness by
introducing change through formal policies and procedures,
Structural Reorganization
?Creating flatter,more organic
organizations
Reengineering
?Streamlining
?Integrating
?Transforming
Management by Objective
(MBO)
?Superiors and subordinates
meet and discuss goals,
?Superiors and subordinates
jointly set attainable goals,
?Superiors and subordinates
meet and evaluate progress,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-88
Technological
Approaches
Task Approaches
Selection of Appropriate Methods
?Emphasize job
design changes
? Job enlargement
? Number of tasks
performed
? Job enrichment
? Amount of discretion
and responsibility
?Emphasize changes
in the flow of work
? New physical plant
layouts
? Changes in office
design
? Improved work
methods
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-89
Human Asset
Approaches
Team Building
Approaches
Selection of Appropriate Methods
? Emphasis on helping
individuals learn and
grow,
? Professionally
? Personally
? Team building
? Managerial grid
? Emphasis on enabling work groups to get work
done more effectively
? Setting goals and priorities
? Analyzing the ways the
group does its work
? Examining group
processes
? Examining interpersonal
relationships
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-90
Mentorship
Programs
Ethics
Training
Selection of Appropriate Methods
?Emphasis on,
?Developing employee
awareness of business
ethics
?Focusing on specific
ethical issues with
which the employees
may come into contact,
?Emphasis on linking employees with
knowledgeable individuals
committed to providing
support to others
?Provide specific job
instructions
?Socialization
?Career development and
guidance
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-91
Multifaceted
Approaches
Introspective
Development
Selection of Appropriate Methods
? Emphasis on a close
examination of one’s
own thoughts and
feelings through,
? Specific training
courses
? Periodic sabbatical
leaves
? Emphasis on
combining techniques
from different
categories
? Organizational
Development (OD)
methods
? Total Quality
Management (TQM)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-92
Impediments and
Limiting Conditions
Leadership
Climate
Formal
Organization
Organizational Culture
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-93
Timing
Scope
Implementing the Method
Implementing
Change
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-94
Evaluating Program
Effectiveness
An Evaluation Model
?Determining the objectives of the program
?Describing the activities undertaken to
achieve the objectives
?Measuring the effects of the program
?Establishing baseline points against which
changes can be compared
?Controlling extraneous factors
?Detecting unanticipated consequences
12 C H
A
P
T
E
R
Leadership,
Developing Applications
?DESCRIBE the Vroom-Jago leadership model,
?DISCUSS the attribution theory approach to
leadership,
?DESCRIBE what constitutes charismatic
leadership,
?COMPARE transactional and transformational
leadership,
?IDENTIFY the major issues in multicultural
leadership,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-2
Effective Leadership For
Tomorrow’s Organizations
Three Important Dimensions
Processing Knowledge
Finding and disseminating knowledge
Building Trust
Trust others as well as be trusted
Using Power Sensitively
Appropriately exercising power
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-3
Vroom-Jago Leadership Model
?Based on the Vroom-Yetton Model
?Normative model or set guidelines
?Situations determine appropriateness of
degrees of participative decision-making
?No one single leadership style was
appropriate
?Leader needs to be flexible to change
styles to fit specific situations
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-4
Vroom-Jago Leadership Model,
Critical Components
Specification of the criteria by which decision
effectiveness is judged
A framework for describing specific leader
behaviors or styles
Key diagnostic variables that describe important
aspects of the leadership situation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-5
Vroom-Jago Leadership Model,
Decision Effectiveness
Decision Effectiveness Criteria
?Decision Quality
?The extent to which the decision
impacts job performance
?Subordinate Commitment
?How important it is that subordinates
be committed to or accept the decision
?Other - Time considerations
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-6
Vroom-Jago Leadership Model,
Decision Styles
Two Types of Decision Situations,
? Individual
? Group
Five Different Decision Styles
? Autocratic (A) - The leader makes the decision without input
from subordinates,
? Consultative (C) - Subordinates have some input,but you make
the decision,
? Group (G) - The group makes the decision; you (as leader) are
just another group member,
? Delegated (D) - You give exclusive responsibility to
subordinates,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-7
SITUATIONAL DIAGNOSIS
Vroom-Jago Leadership Model,
Diagnostic Procedure
Pose a series of questions about the situation,
? How important is the technical
quality of the decision?
? How important is subordinate
commitment to the decision?
? Do you have sufficient information
to make a high quality decision?
? Is the problem well structured?
? If you were to make the decision by
yourself,is it reasonably certain
that your subordinates would be
committed to the decision?
? Do subordinates share the
organizational goals to be
attained in solving this problem?
? Is conflict among subordinates
over the preferred solutions
likely?
? Do subordinates have sufficient
information to make a high-
quality decision?
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-8
Vroom-Jago Leadership Model,
Validity Issues
? Lacks complete empirical evidence establishing
its validity,
? Thought to be consistent with what we know
about the benefits of subordinate participation in
decision making,
? Its value as a theoretical contribution and as a
practical tool have yet to be fully developed,
? May falsely suggest that leaders always make
decisions in a linear fashion,
? Fails to consider the impact of the time element,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-9
Follower
behavior
Attribution Theory of Leadership
? Leaders are essentially information processors
? Leaders search for informational,cues”
? Leaders attempt to construct causal explanations to
guide behavior
Leader
behavior
Leader
attributions
Individuals are assumed to be rational and concerned
about the causal linkages in their environments
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-10
Attribution Theory of Leadership
Causal Attribution
of Poor Quality
Internal causes
?Low effort
?Low commitment
?Lack of ability
External causes
?Improper equipment
?Unfair deadlines
Linkage
#1
Information Cues
?Distinctiveness
?Consistency
?Consensus
Observation of
Poor Quality or
Production
?Rejects
?Excess scrap
?Returned products
?Excessive production
costs
Linkage
#2
Leader Behavior
in Response to
Attributions
?Reprimand
?Transfer
?Demotion
?Redesign job
?Personal concern
?Training
Perceived Source of
Responsibility
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-11
Leader Behavior,Cause or Effect
? Results of one recent field study suggests that,
? Leader consideration behavior causes subordinate
satisfaction
? Follower performance causes changes in leader’s emphasis
? Further examination of,reciprocal causation” needed
? Reciprocal causation - leader behavior causes follower
behavior and vice versa
Overall,research on the cause-effect
issues is still quite limited,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-12
Charismatic Leadership
A leader who creates an atmosphere of motivation based
on an emotional commitment and identity to his or her
vision,philosophy,and style on the part of followers,
Visionary Charismatic Leaders
? Having the ability to see both the big picture and the
opportunities the big picture presents,
Crisis-Based Charismatic Leaders
? Having an impact when faced with situations lacking
adequate knowledge,resources,or procedures
TWO TYPES,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-13
TRANSFORMATIONAL
LEADERSHIP
Transactional and
Transformational Leadership
?The leader helps the
follower identify what must
be done to accomplish the
desired results,
?Better quality output
?More sales or services
?Reduced cost of
production
?The leader persuades
followers to work hard to
achieve the goals envisioned,
?The leader’s vision provides
the follower with motivation
for hard work that is self-
rewarding (internal)
TRANSACTIONAL
LEADERSHIP
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-14
Transactional Leadership
L = Leader
F = Follower
L,Clarifies how F’s need
fulfillment will be exchanged
for enacting role to attain
designated outcomes
F,Recognizes value of
designated outcomes (need-
fulfilling value for F)
L,Recognizes what
F needs
F,Feels confidence in
meeting role
requirements
L,Clarifies F’s
role
L,Recognizes what F
must do to attain
designated outcomes
F,Develops
motivation to attain
desired outcomes
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-15
Transformational Leadership
Individual attention
Charisma
Intellectual stimulation
Contingent reward
Management by exception
Five
Descriptive
Factors
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-16
Coaching
Everyday interaction of helping another
employee improve his or her understanding
of the work and improve performance,
Tips on How to Coach and Lead
?Practice active listening,
?Support learning,
?Move from easy to hard skills,
?Set goals,
?Provide tactful feedback,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-17
Multicultural Leadership
Overall,in the global context,an inability exists to
generalize the leadership needed to be effective,
Cross-Cultural Research Suggests That,
? Leadership attributes associated with successful
leadership results vary across cultures (e.g.,Bass et al.)
? Leadership style in countries exhibiting one set of
cultural dimensions culture may be counterproductive
in those exhibiting other sets (e.g.,Hofstede)
? Serious doubts exist regarding the generalizability or
transferability of good leadership across national and
cultural boundaries
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-18
Multicultural Leadership
Bass Proposed Seven Factors Linked to
Cross-Cultural Leadership Effectiveness,
Preferred awareness,
Actual awareness,
Submissiveness,
Reliance on others,
Favoring of group decision-making,
Concern for human relations,
Cooperative peer relations,
Leader skills and abilities comprise only one
variable in the leadership context,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
13 C H
A
P
T
E
R
Communication
?EXPLAIN the elements in the communication process,
?COMPARE the four major directions of
communication,
?DESCRIBE the role played by interpersonal
communication in organizations,
?DISCUSS multicultural communication,
?IDENTIFY significant barriers to effective
communication,
?DESCRIBE ways in which communication in
organizations can be improved,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-20
Communication Defined
The transmission of information and
understanding through the use of
common symbols from one person to another,
? Common symbols may be
? Verbal
? Nonverbal
? Direction may be
? Up and down (Vertical)
? Across (Horizontal)
? Down and across (Diagonal)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-21
The Communication Process
Communicator
Who…
Feedback
…,with what effect
Receiver
to whom…,
Medium
in what way…,
Message
says what…,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-22
How Communication Works
?Experts suggest that effective
communication is the result of a
common understanding between,
?The communicator
?The receiver
?The word communication is
derived from the Latin
communis,meaning,common.”
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-23
A Communication Model
Communicator Message Medium Receiver
Feedback
… =
Noise
….,….,….,….,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-24
The Elements of Communication
Communicator
?Employee with ideas,intentions,
information,and a purpose
Encoding
?Translate the communicator’s
ideas into a language expressing
the purpose
Message
?What the individual hopes to
communicate
?Verbal and nonverbal
?Intended and unintended
Medium
?Carrier of the message
Decoding-Receiver
?Interpretation of the message
Feedback
?Channel to determine whether
the message was received and
produced the intended response
Noise
?Factors that distort the intended
message
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-25
Feedback
One-Way Communication
Does not allow receiver-to-
communicator feedback
Two-Way Communication
Provide for receiver-to
communicator feedback
Direct Feedback
Face-to-face verbal and
nonverbal exchanges may
express communication
breakdowns
Indirect Feedback
Signals like declines in
productivity may indicate
communication breakdowns,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-26
Nonverbal Messages or
Communication
? Includes physical cues like,
? Head,face,and eye movements
? Posture,dress,distance,gestures and voice tone
? Some such messages are spontaneous and unregulated
? Other messages conscious and deliberately presented
? Differs from other communication forms because it
? May be difficult to suppress
? Is more apparent to observers than people producing them
? Can be susceptible to multiple interpretations
Information sent by a communicator that is
unrelated to the verbal information
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-27
Communicating Within
Organizations
Horizontal
Communication
Communication
that flows across
functions in an
organization,
Like between
finance and sales
Downward
Communication
Communication
that flows from
individuals in
higher levels of the
organization’s
hierarchy to those
in lower levels,
Official memos,
policies,procedures
Upward
Communication
Communication
that flows from
individuals at
lower levels to
those at higher
levels,
Suggestion boxes,
group meetings
Diagonal
Communication
Communication
that cuts across
functions and
levels in an
organization,
Project avoiding
traditional channels
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-28
Communicating Externally
To present products and services,to project a positive
image,to attract employees,and to gain attention,
FOUR DISTINCT PROGRAMS,
Public Relations
Advertising
Promotion
Customer/Client/Patient Surveys
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-29
Information Richness
Information richness involves how much
information can be effectively transmitted,
Low High
Memo Face-to-face
RICHNESS
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-30
Information Technology
? The Internet covers a wide range of services
and information technologies,
? An intranet is a private protected electronic
communication system within an organization,
? E-mail is transmitting messages through
personal computers,
? Voice mail links a telephone system to a
computer and digitizes and store incoming
messages,
? Videoconferencing and Teleconferencing refer
to technologies associating with viewing and
speaking,
? Electronic Meetings use networked computers
to automate meetings,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-31
Interpersonal Communications
Communication flows from individual to individual
in face-to-face and group settings,
?Can vary from direct orders to casual expressions,
?Influences how people feel about the organization,
?Problems arise from perceptual differences and
interpersonal style differences,
?Research suggests that over 90 percent of meaning
results from nonverbal cues,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-32
EFFECTIVE MULTICULTURAL
COMMUNICATION MEANS,
?Familiarize themselves with significant cultural differences that
might affect the communication process,
?Make a conscious,concerted effort to lay aside ethnocentric
tendencies,
?Maintain a posture of,knowing they do not know.”
Multicultural Communication
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-33
Barriers to Effective Communication
? Frame of reference
? Interpretation differences
depending on previous
experiences
? Selective Listening
? Perception
? Interpretation
? Evaluation
? Action
? Value Judgments
? Assigning overall worth
prior to receiving entire
message
? Source Credibility
? Trust,confidence,and faith
in receiver
? Filtering
? Manipulation of information
so the receivers perceive it
as positive
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-34
Barriers to Effective Communication
? In-Group Language
? Words,phrases that have meaning only to group
members
? Status Differences
? Hierarchical ranking expressed through various symbols
? Time Pressures
? May result in short-circuiting
? Communication Overload
? Causes individuals to screen out the majority of
messages
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-35
Improving Communications
in Organizations
Message
?Follow up
?Principle of
sufficiency
?Empathy
?Repetition
?Encouraging
?Mutual trust
?Effective timing
?Simplifying
?Language
?Utilizing feedback
?Using the grapevine
Encoding Communicator
Field of Experience
Receiver Decoding
Field of Experience
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
14 C H
A
P
T
E
R
Decision Making
?CONTRAST programmed with nonprogrammed
decisions,
?IDENTIFY the steps in the decision-making process,
?DISCUSS priority setting,
?DESCRIBE the conditions governing alternative-
outcomes relationships,
?EXPLAIN the role of behavioral influences on decision
making,
?COMPARE individual and group decision making,
?IDENTIFY specific techniques for stimulating
creativity,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-37
Types of Decisions
Repetitive and routine
decisions and where a
definitive procedure is
developed to handle them,
Novel and unstructured
decisions required for
unique and complex
management problems,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-38
Attributes of of Decisions
? Decisions should be thought of as a means
rather than ends,
? Decisions are the organizational
mechanism through which an attempt is
made to achieve a desired state,
? Decisions are,in effect,an organizational
response to a problem,
? Every decision is the outcome of a dynamic
process influenced by many forces,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-39
A Rational Decision-Making
Process
Establishing
specific goals and
objectives and
measuring results
Problem
identification and
definition
Establishing
priorities Revise Revise
Consideration
of causes
Development of
alternative
solutions
Evaluation of
alternative
solutions Revise Revise
Implementation Follow-up
Revise Revise
Solution
Selection
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-40
Problem Identification
and Definition
Defining Problems in Terms of Solutions
Identifying Symptoms as Problems
Factors Affecting Problem Identification,
Perceptual Problems
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-41
Involves Considering Three Issues,
Urgency
Relates to time,
Impact
Seriousness of the problem’s effects,
Establishing Priorities
Growth Tendency
Addresses future considerations,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-42
Alternative-Outcome
Relationship
POSSIBLE CONDITIONS
Certainty
Complete knowledge of the probability of
the outcome of each alternative,
Uncertainty
Absolutely no knowledge of the
probability of the outcome of each
alternative,
Risk
Some probabilistic estimate of the
outcomes of each alternative,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-43
Bounded Rationality
Assumptions
? Rarely have all necessary or desired information
? Unaware of all alternatives or consequences
? Early adoption of solutions due to limitations common
? Organizational goals constrain decision-making
? Conflicting constituents’ goals can force compromises
March and Simon’s administrative decision-
making model depicts decision-makers as
? Operating with incomplete information
? Affected by their cognitive abilities
? Impacted by psychological and sociological factors
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-44
Intuitive Decision-Making
Using experience,self-confidence,and
self-motivation to process information,
data,and the environment or address
a problem or opportunity,
Contributing Factors,
? High levels of uncertainty
? No history or past experience to draw upon
? Intense time pressures
? Excessive number of alternatives
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-45
Behavioral Influences
Values Potential for Dissonance
Propensity
for Risk
Escalation of
Commitment
Cultural Context
Decision-
Making
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-46
Cognitive Dissonance
Conditions contributing to anxiety,
? Psychological and financial importance of
decision
? Number of foregone alternatives
? Number of favorable features of foregone
alternatives
Lack of consistency or harmony among
an individual’s various cognitions
after a decision has been made,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-47
Escalation of Commitment
? Need to turn a losing or poor decision into a winning
or good decision
? Found in decision makers who,
Are unclear of goals
Have a fear of failure
Are feeling pressured
Work in a low trust culture
An increasing commitment to a previous decision
when a,rational” decision maker would withdraw,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-48
Individual Versus Group
Decision-Making
More
Less
Individual Average individual Minority control Majority control Consensus
Method of Utilization of Group Resources
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-49
Creativity in Group
Decision- Making
Process by which a group,or team produces
novel and useful ideas to solve a problem
or capture and opportunity,
Perseverance Risk-taking Propensity
Openness Tolerance of Ambiguity
,Lateral thinking” characteristics,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-50
Techniques for
Stimulating Creativity
Brainstorming
The generation of ideas in a group through
noncritical discussion,
The Basic Rules,
? No idea is too ridiculous,
? Each idea presented belongs to the group,not to the
person stating it,
? No idea can be criticized,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-51
Techniques for
Stimulating Creativity
The Delphi Technique
? Solicitation and comparison of anonymous judgments
on the topic of interest,
? Use of a set of sequential questionnaires,
? Intersperses questionnaires with,
? Summarized information
? Feedback of opinions from earlier responses
? Retains the advantage of having several judges while
removing the biasing effects that might occur in face-
to-face interaction,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-52
Techniques for
Stimulating Creativity
Phase 1
? Individuals record
ideas but do not speak
Phase 2
? Structured sharing of
ideas takes place
? Output is a list of ideas
Phase 3
? Structured discussion of
each idea
Phase 4
? Independent and
confidential ranking/
voting
? Mathematically pooled
outcomes result
The Nominal Group Technique (NGT)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-53
Techniques for
Stimulating Creativity
? Delphi participants typically are anonymous to one another,
while NGT participants become acquainted,
? NGT participants meet face-to-face around the table,while
Delphi participants are physically distant and never meet
face-to-face,
? In Delphi,all communication between participants is by way
of written questionnaires and feedback from the monitoring
staff,In NGT,communication is direct between participants,
The Delphi
Technique
Nominal Group
Technique Versus
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
15 C H
A
P
T
E
R
Organizational Structure
and Design
?IDENTIFY the choices which must be made in designing an
organization,
?DEFINE what is meant by the term division of labor,
?DISCUSS the role of delegation of authority in design decisions,
?DESCRIBE several forms of departmentalization,
?EXPLAIN the importance of span of control,
?DEFINE three important dimensions of structure,
?COMPARE mechanistic and organic organizational design,
?IDENTIFY the major advantages of matrix organizational design,
?DISCUSS multinational organizational structure and design issues,
?EXPLAIN the meaning of the term virtual organization,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-55
Organizational Structure
and Design
Organizational Design
? Purposeful and goal-oriented process
? Decisions/actions to predetermine the way employees do their work
Organizational Structure
? Relatively stable relationships and processes of the organization,
?,The anatomy of the organization,providing a foundation within
which the organization functions.”
? Purpose is to regulate,or at least reduce,uncertainty,
S u b o r d i n a t e S u b o r d i n a t e S u b o r d i n a t e
M a n a g e r
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-56
Organizational Design
Decision Process
? Managers must decide how to divide the overall tasks of the
organization into successively smaller jobs,
? Managers must decide the basis by which to group the individual jobs,
? Managers must decide the appropriate size of the group reporting to
each supervisor,
? Managers must distribute authority among the jobs,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-57
Organizational Design
Components
Components
Specialization
High Low
Division of
Labor
Number
Few Many
Span of
Control
Basis
Homogenous Heterogeneous
Departmentalization
Delegation
High Low
Authority
Design Decisions
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-58
Division of Labor
Ways that Division of Labor Can Occur,
? Work can be divided into different personal specialties,
? Occupational and professional specialties
? Work can be divided into different activities necessitated
by the natural sequence of the work the organization
does,
? Horizontal specialization
? Work can be divided along the vertical plane of an
organization,
? Hierarchy of authority
The Extent to Which Jobs Are Specialized
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-59
Reasons to Delegate or
Decentralize Authority
?Encourages management
development
?Leads to a more
competitive climate
?Enables managers to
exercise more autonomy
Delegation of Authority
Extent to which managers allow subordinates to
make decisions without approval of higher
management and exact obedience from others
Reasons to Centralize
Authority
?Increases training costs
?Heightens fear and
resistance
?Raises administrative
costs
?Duplicates efforts and
some functions
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-60
Functional Departmentalization
Major Advantage
Creating efficiency and more cost
effective units
Engineering Finance Personnel
Major Disadvantage
Sacrificing organizational goals
for departmental ones
Manufacturing
OMB
Company
Marketing
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-61
Territorial Departmentalization
Southern Eastern Rocky Mountain Pacific Midwestern
OMB
Company
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-62
Product Departmentalization
Small
Household
Appliances
Commercial
Appliances
Major Advantages
?Creating profit responsibility
?Fostering innovation and autonomy
Major Disadvantages
?Creating redundant functions
?Increasing administrative
costs
OMB
Company
Large
Household
Appliances
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-63
Customer Departmentalization
Retail
Stores
Order
Government
Contracts
OMB
Company
Institutional
Sales
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-64
Span of Control
The number of jobs to be included in a specific group
determines the frequency and intensity of interpersonal
relationships required of a manager,
Potentially Creates Three Types of Relationships,
? Direct single
? Between a manager and each subordinate individually
? Direct group
? Between a manager and each possible permutation of
subordinates
? Cross
? Between subordinates and other subordinates
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-65
Critical Factors Affecting
Span of Control
Required Contact
Degree of Specialization
Ability to Communicate
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-66
Dimensions of Structure
Formalization
The extent to which
expectations regarding the
means and ends of work are
specified,written,and
enforced,
Centralization
The location of decision-
making authority in the
hierarchy of the
organization,
Complexity
The number of distinctly different job titles,
or occupational groupings,and the number
of distinctly different units,or departments,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-67
High
Formalization
Dimensions of Structure
Dimensions Decisions
1,High specialization
2,Delegated authority
3,Functional departments
4,Wide spans of control
High
Centralization
High
Complexity
1,High specialization
2,Centralized authority
3,Functional departments
4,Wide spans of control
1,High specialization
2,Delegated authority
3,Territorial,customer,and
product departments
4,Narrow spans of control
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-68
Organization Design Models
The
Organic
Model
The
Matrix
Model
The
Mechanistic
Model
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-69
The Mechanistic Model
Organizations should function in a machinelike
way to accomplish the organization’s goals
in a highly efficient manner,
? It’s highly complex because of its emphasis on
specialization of labor,
? It’s highly centralized because of its emphasis
on authority and accountability,
? It’s highly formalized because of its emphasis on
function as the basis of departments,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-70
The Organic Model
? It’s relatively simple because of its de-emphasis on
specialization and its emphasis on increasing job
range,
? It’s relatively decentralized because of its emphasis
on delegation of authority and increasing job depth,
? It’s relatively informal because of its emphasis on
product and customer as bases for departments,
Organizations should seek designs that maximize
satisfaction,flexibility,and development,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-71
The Matrix Model
Advantages
? Efficient Use of Resources
? Flexibility in Conditions of Change and Uncertainty
? Technical Excellence
? Freeing Top Management for Long-Range Planning
? Improving Motivation and Commitment
? Providing Opportunities for Personal Development
Organizations should combine functional and
product departmental bases to maximize the
strengths and minimize the weaknesses of each,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-72
Multinational Structure and Design
?National boundaries help define organizational environments
?National boundaries are of varying importance for different
elements of organizational structure and processes,
?Subsidiaries of multinational corporations can act as conduits
that introduce changes into the host country’s environment,
?Subsidiaries of multinational corporations can act as conduits
through which features of the host country’s environment are
introduced throughout the organization,
Factors with Important Implications for
Multinational Structure and Design,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-73
Virtual Organizations
? One of the fastest developing practices in business
throughout the world,
? Involves firms in cooperative relationships with their
suppliers,distributors,and even competitors,
? Virtual units are assembled and disassembled according to
needs,
? Characteristics flexible enough to accommodate a wide
range of organizations,(See Exhibit 15.7)
A collection of geographically distributed,functionally
and/or culturally diverse aggregations of individuals
linked by electronic forms of communication,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-74
,Boundaryless Organizations”
Barrier-Breaking Features,
Creating flatter hierarchies
Increasing participative decision-making
Developing multiple-hierarchy teams
Encouraging team building
Facilitating coordination
Promoting telecommuting or teleworking
Attempts to minimize and,in some cases,
eliminate vertical and horizontal structures,
tightly defined work roles,and top-down control,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
16 C H
A
P
T
E
R
Managing Organizational
Change and Innovation
?DEFINE what is meant by organizational change management,
?IDENTIFY the major steps in undertaking organizational change
effort,
?DESCRIBE the two major types of change forces,
?DISCUSS the role of problem diagnosis in the organizational
change management,
?IDENTIFY a number of change methods and the relative depth of
intervention each represents,
?RECOGNIZE the impediments and conditions that may limit
change management effectiveness,
?DISCUSS the ethical implications of change management,
?UNDERSTAND how adopting innovation is a natural outcome in
organizations that effectively manage change,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-76
Managing Organizational
Change
? Change is an inevitable,pervasive,persistent,and
permanent condition for all organizations,
?Organizations’ futures depend on their ability to
master change,
? Effective managers must view managing planned
change as an integral responsibility,
? Contemporary managers will have to develop
approaches for adopting and implementing
innovation,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-77
Organizational Change
Approaches
Managing Change
through Reason
Managing Change
through Power
Managing Change
through Reeducation
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-78
Learning Principles in
Change Management
Unfreezing old learning
? Requires people who want to learn new ways to think and act,
? Deals directly with resistance to change,
Movement to new learning
? Requires training,demonstration,and empowerment,
? Empower employees to take on new behaviors,
Refreezing the learned behavior
? Occurs through the application of reinforcement and feedback,
? Strategies designed to minimize the loss of new knowledge,
skills,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-79
Change Agents
? External Change Agents
? Temporary employees of the organization engaged only for the
duration of the change process,
? Internal Change Agents
? An individuals working for the organization who knows something
about its problems
? External-Internal Change Agents
? Designating an individual or small group within the organization to
serve with the external change agent,
Interveners bring a different perspective
to the situation and challenge the status quo
for the purpose of improving effectiveness,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-80
Individual Resistance
to Change
? Threat of a loss of position,power,and authority
? Economic insecurity
? Possible alteration of social friendships and
interactivity
? Fear of the unknown
? Failure to recognize or be informed about the need to
change
? Cognitive dissonance or discomfort created by what
is new or different
Reasons for Resistance Include,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-81
Organizational
Resistance to Change
Barriers to Change Include,
?The professional and functional
orientation of the department,unit,
or team,
?Structural inertia
?Possible threat to the
organizational power balance
?Failures at previous change
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-82
Strategies for Overcoming
Resistance to Change
Key Considerations
? Individuals and organizations must have a reason to change
? Involvement of people at all levels of the hierarchy
? Ongoing communication
? Creation of a learning organization,
Open discussion and accessibility to information
Clear vision expressed at all levels
Strong emphasis on independence,worth and importance of people
Clear goals and performance expectations
Commitment to learning
Concern for measurable results
Curiosity to try new methods
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-83
A Model For Managing
Organizational Change
? Sorting out the information that reflects the
magnitude of change forces
? Information is the basis for determining when
change is or is not needed
? Diagnosing the problem
? Identifying relevant alternative techniques
? Implementing the change
? Monitoring the change process and change results
See Exhibit 16.1
Key Management Responsibilities,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-84
Forces For Change
? Economic Forces
? Technology
? Social and Political
Change
External Forces
Internal Forces
? Process
? Behavioral
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-85
Diagnosis of a Problem
Diagnostic Questions
? What is the problem as distinct from the
symptoms of the problem?
? What must be changed to resolve the
problem?
? What outcomes (objectives) are
expected from the change,and how will
those outcomes be measured?
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-86
Diagnosis of a Problem
Data Collection Methods
?Questionnaires
?Direct observation
?Key interviews
?Workshops
?Document and record
examination
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-87
Selection of Appropriate Methods
Structural Approaches
Managerial actions that attempt to improve effectiveness by
introducing change through formal policies and procedures,
Structural Reorganization
?Creating flatter,more organic
organizations
Reengineering
?Streamlining
?Integrating
?Transforming
Management by Objective
(MBO)
?Superiors and subordinates
meet and discuss goals,
?Superiors and subordinates
jointly set attainable goals,
?Superiors and subordinates
meet and evaluate progress,
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-88
Technological
Approaches
Task Approaches
Selection of Appropriate Methods
?Emphasize job
design changes
? Job enlargement
? Number of tasks
performed
? Job enrichment
? Amount of discretion
and responsibility
?Emphasize changes
in the flow of work
? New physical plant
layouts
? Changes in office
design
? Improved work
methods
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-89
Human Asset
Approaches
Team Building
Approaches
Selection of Appropriate Methods
? Emphasis on helping
individuals learn and
grow,
? Professionally
? Personally
? Team building
? Managerial grid
? Emphasis on enabling work groups to get work
done more effectively
? Setting goals and priorities
? Analyzing the ways the
group does its work
? Examining group
processes
? Examining interpersonal
relationships
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-90
Mentorship
Programs
Ethics
Training
Selection of Appropriate Methods
?Emphasis on,
?Developing employee
awareness of business
ethics
?Focusing on specific
ethical issues with
which the employees
may come into contact,
?Emphasis on linking employees with
knowledgeable individuals
committed to providing
support to others
?Provide specific job
instructions
?Socialization
?Career development and
guidance
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-91
Multifaceted
Approaches
Introspective
Development
Selection of Appropriate Methods
? Emphasis on a close
examination of one’s
own thoughts and
feelings through,
? Specific training
courses
? Periodic sabbatical
leaves
? Emphasis on
combining techniques
from different
categories
? Organizational
Development (OD)
methods
? Total Quality
Management (TQM)
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-92
Impediments and
Limiting Conditions
Leadership
Climate
Formal
Organization
Organizational Culture
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-93
Timing
Scope
Implementing the Method
Implementing
Change
Copyright ? 2002 by The McGraw-Hill Companies,Inc,All rights reserved,McGraw-Hill/Irwin
12-94
Evaluating Program
Effectiveness
An Evaluation Model
?Determining the objectives of the program
?Describing the activities undertaken to
achieve the objectives
?Measuring the effects of the program
?Establishing baseline points against which
changes can be compared
?Controlling extraneous factors
?Detecting unanticipated consequences
