Saturday, October 15, 2011

Chapter 4: Organizational Behavior Outline


OB attempts teach methods to deal with human challenges in the workplace. OB trains managers and leaders to avoid tactical errors by taking into consideration people, groups and organizational context involved.
  • Problem-solving model
    • OB offers a three-set technique to solve organizational problems
      • Problem Definition
        • Know the source of the difficulty
          • Don't be mislead by trying to solve the symptoms rather than the cause
        • Want Got Gaps
          • There is a problem when a deviation exists between what a manager thinks ought to be occurring and what is actually occurring.
          • View the situation from the perspectives of all the participants and outline their want got gaps, or the difference between what they have and what they want.
        • Level of Problems
          • When you know what gaps exist, it is important to understand how they affect the organization
          • Problems can affect a company in three ways:
            • Within or between certain people (individual/personal)
            • Within or between groups (intergroup)
            • Within the whole organization (organization)
        • Solve Problems and Causal Chains
          • Find the most important problems and solve those first - source problems.
            • Eliminate the source, eliminate the symptoms.
          • A graphical method to get at source problems is to draw a causal chain
            • Chart: contributing problems -> Source Problem -> Business Problem
      • Analysis
        • After defining the gaps and using causal chains, link the problems to their causes.
      • Action Planning
        • Be decisive and proactive.
        • Action plan has six important steps:
          1. Set specific goals
          2. Define activities, resources needed, responsibilities
          3. Set a timetable for action
          4. Forecast outcomes, develop contingencies
          5. Formulate a detailed plan of action in time sequence
          6. Implement, supervise execution and evaluate based on the goals in step one.
        • A menu of action levers exist: rewards, controls, and planning systems.
  • Psychology lesson
    • The Assumptions Perceptions Conclusions Feelings Behaviors (APCFB) Model
      • Explains the cognitive process by linking external events to employee behavior.
        • Assumptions affect the perceptions that people have
        • Those perceptions affect the conclusions
        • The conclusions prompt feelings.
        • The feelings drive behaviors that managers observe.
      • By understanding the process, there is an opportunity to influence positive behaviors in oneself and one's coworkers.
      • We all see through filters that prevent us from perceiving events accurately and prevent us from acting out our true desires.
        • Defense mechanisms act as additional filters to prevent psychological damage
          • They also prevent an accurate reading of other people.
      • We can influence assumptions, which make up our value system. In order of ease of accessibility they include:
        • Expectations
          • Can be changed through clear management intent and action
        • Beliefs
          • Can be influenced through management intent and action
        • Values
          • Deeply held assumptions that may be alterable given significant time.
      • Goal congruence between the individual and the organization makes the group more productive.
  • Motivation
    • Expectancy theory of motivation
      • Outlines the factors that produce motivation with individuals.
      • Motivation = Expectation of Work will lead to Performance * Expectation Performance will lead to Reward * Value of Reward
    • Behavior is motivated by the urge to satisfy needs.
      • Motivation will be enhanced by maximizing motivators (or satisfiers) on the job and  minimizing dissatisfiers or maintenance factors (maintenance factors don't necessarily bring happiness, but are expected).
    • Maslow (actually proven wrong via research data)
      • Hierarchy of needs
        • Physical needs
        • Need for safety
        • Need to belong
        • Need for status
        • Self-actualization
    • David McClelland
      • Three basic needs
        • Need for achievement
        • Need for power
        • Need for affiliation
    • Job Design is another way to influence employee motivation.
      • Core dimensions of a job lead to critical psychological states within employees that lead to a variety of outcomes.
      • Can be used to enhance quality of work life and empower employees.
  • Leadership
    • Leaders shape goals, develop new ideas, and reach people at an emotional level.
      • Leaders take on challenges while managers solve problems.
    • VCM Model
      • Vision 
      • Commitment
      • Management skills
    • Leadership patterns
      • Spectrum of boss-centered to subordinate-centered
      • Choice of leadership style is regulated by three forces:
        • Within the manager
        • Within the subordinates
        • Forces of the situation
      • Self-awareness is critical to avoiding inappropriate management styles.
  • Creativity
    • Should have the tools to capture creative ideas at any moment
    • Mind mapping is a useful technique
    • Type A and Type B Behaviors
      • Type A
        • Competitive need for achievement
        • Sense of time urgency
        • Aggressiveness
        • Hostility to others and the world
        • Evaluate their self-worth on external achievements
        • In competition with others in noncompetitive situations
      • Type B
        • Enjoys life and feels more relaxed
  • On-the-job office procedure
    • Active Listening
      • Helps you gain a clear perception of situations so you can deal effectively with them.
      • Defined by:
        • Respond to information and don't lead
        • Respond to personal information and don't give advice
        • Identify interviewee's feelings as well as content
    • Performance Appraisals
      • Effective appraisals have three types of goals:
        • Organizational
          • Aim to assure proper conduct and performance, placement, promotion and pay
        • Feedback and evaluation
          • Provides employer and employee with a formal process to document performance
        • Coaching and development
          • Should be the primary goals of the appraisal
          • Define specific targets and timetables
      • Appraisals must be timely and both participants must be prepared
      • Appraisals provide documentation to legally fire an employee
    • Reprimands
      • Check out the facts first
      • Give warning that you need to talk about the problem
      • Pause and express your displeasure
      • Display a caring attitude
      • A good manager can balance reprimand with praise.
    • Managing your boss
      • Understand your bosses and their context including
        • Their stated goals and objectives
        • The pressures on them
        • Their strengths, weaknesses and blind spots
        • Their preferred working styles
          • As your boss how s/he prefers to communicate
      • Be introspective and understand yourself and your needs
        • Your own strengths and weaknesses
        • Your personal style
        • Your predisposition toward dependence or on resistance to authority figures
      • Incorporate the first two steps and develop and maintain a relationship that:
        • Fits both your needs and styles
        • Is characterized by mutual expectations
        • Keeps your boss informed -- bosses hate surprises
        • Is based on dependability and honesty
        • Selectively uses your boss's time and resources
  • Power
    • Five types of power
      • Coercive
        • Based on fear
      • Reward
        • Expectation of receiving praise, recognition or income (the opposite of coercive power)
      • Referent
        • Derived from being a person whom other people admire regardless of formal job status
      • Legitimate
        • Formal status held in the organizational hierarchy
      • Expert
        • Comes from skills, knowledge and experience
        • Expert power allow people to influence others.
        • Managers must cross-train employees to keep expert power from creating little generals
    • Management by Objective (MBO)
      • Peter Drucker
      • Managers delegate tasks by negotiating a contract of goals without dictating a detailed roadmap for implementation. Focus is on the result.
    • Management by walking around (MBWA(
      • Expounded at HP
      • Bosses encouraged to be out of their offices and walking around to:
        • Build relationships
        • Motivate the team
        • Keep direct touch with the activities of the company
  • The organizational model and structures
    • Organizations are networks of related parts -- organizational architecture
    • Six elements define organizations:
      • Strategy
        • An implicit or explicit plan for success in the marketplace
      • Policies and procedures
        • Formal rules are written down, procedures are observable ways the company conducts business.
      • Organizational structures
        • Formal relationships in organizational charts
        • Line employees
          • People who are directly involved in producing or marketin the firm's products or services
        • Staff employees
          • Others who advise, serve and support the line
        • Line and staff employees can be organized according to:
          • Functional
            • Divides work by tasks
          • Product
            • Groups all functions necessary to deliver a specific product
          • Customer
            • Grouped to satisfy customer needs, common in service industry
          • Geographic location
            • Regional offices manage business, particularly true of international business.
          • Divisional
            • Independent businesses operating under the umbrella of a parent company
          • Matrix
            • Departs from unity of command and gives each employee two or more bosses. 
            • Requires flexible, professional staff members
          • Amorphous
            •  No formal structure at all
            • Highly motivated managers create and dissolve reporting relationships as the task at hand requires.
          • Hybrid
            • Composed of a mix of operational structures
        • Span of control - the number of people who report to a manager
          • Using span of control is a common way to have:
            • Reduction in force (RIF) = demassing = restructuring
      • Systems
        • Systems fall into one of six categories
          • Money allocation, control and monitoring (accounting, investment, and budgeting systems)
          • Object allocation, control and monitoring (inventory and production systems
          • People allocation, control and monitoring (human resource planning, employee data and appraisals)
          • Future anticipation (strategic planning, marketing-sales planning, business development functions)
          • People reward and incentives (compensation schemes, bonus plans, profit-sharing plans)
          • Integrative (mixes of the first five. In well-managed companies integrated systems forecast sales, which dictates production schedules required to meet the need)
        • Climate
          • The emotional state of an organization's members
        • Culture
          • Mix of behaviors, thoughts, beliefs, symbols and artifacts that are conveyed to people throughout an organization over time.
  • Systems theory
    • Likens organizations to living organisms with subsystems
      • Management subsystem
        • Sets goals, plans, controls
      • Adaptive subsystem
        • Acts as a firm's eyes to monitor the environment
      • Boundary-spanning subsystem
        • Controls the intake of the organization (hiring, buying, raising money)
      • Production subsystem
        • Converts inputs to goods and services
      • Boundary spanning out subsystem
        • Marketing, personnel, public relations
      • Maintenance subsystem
        • Employee incentives and newsletters
    • Provides a means to analyze an organization to gauge its health or to make a change.
  • Organizational evolution and revolution
    • Companies that can change are called learning organizations
    • Organizations exhibit five predictable stages of growth called evolutions and five periods of crisis called revolutions
      • Growth pattern consists of tightening and loosening of management reins in response to changes within the organization and environment.
        1. Creativity / Leadership crisis
        2. Direction / Autonomy crisis
        3. Delegation / Control crisis
        4. Coordination / Red tape crisis
        5. Collaboration / ? Crisis
  • Resistance to change
    • Change management strategies
      • Company lacks information -> Education and communication tactics
      • You need information and you have little leverage -> Participation and involvement tactics
      • Adjustment problems -> Support and facilitation tactics
      • Your desired changes will cause losses and opponents have power to block you -> Negotiation and agreement tactics
      • You have no alternatives and no money for facilitation -> Manipulation (give no choices)
      • Speed is needed and you have the power -> Explicit orders and coercion tactics

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