Chapter 6 - Sender: the person initiating a message in writing, by speaking, using body language, etc. - Encoding: converting the message into symbolic form; affected by skill, attitudes, knowledge, and cultural differences - Message: what is communicated; the actual physical product from the source encoding; speech; writing; pictures; gestures and movements; expressions - Channel: the medium through which the message travels; formal; informal; authority network in the organization; formal memos; voice mail, email; meetings - Decoding: retranslating the sender’s message into a form understood by the receiver; translated into a form that can be understood by the receiver - Receiver: the intended person to whom the message is directed; affected by skill, attitudes, knowledge, cultural differences; must be skilled in reading, listening, and reasoning - Feedback loop: the final link in the communication process; checks how successful the message was transferred according to original intent; determines whether understanding has been achieved - Filtering: The sender manipulates information so it will be viewed more favourably by the receiver; the sender is influenced by personal interests and perceptions of what is important; and opportunities for filtering are determined by the number of organizational levels. - Selective perception: The receiver selectively sees and hears based on his or her needs, motivations, experience, background, and other personal characteristics; and the receiver projects his or her interests and expectations onto the decoding process. - Defensiveness: People’s perception of being threatened causes behaviours such as verbal attacks, sarcasm, being overly judgmental, questioning motives; defensiveness reduces the ability to achieve mutual understanding. - Language: Age, education, and cultural background influence the words used and the meaning attached to them; specialists develop their own jargon or technical language; geographical idiosyncrasies come into play; senders tend to assume that the words they use mean the same thing to receivers. - Information overload: individuals have a finite capacity for processing data; this interferes with the memory of and the processing of needed information; they tend to select out, pass over, ignore, or forget information, and procrastinate in dealing with the information. - Forcing: When one person seeks to satisfy his or her own interests, regardless of the impact on the other parties to the conflict, he or she is competing. - Problem solving: When the intention of the parties is to solve the problem by clarifying differences rather than by accommodating various points of view, they are collaborating for mutually beneficial outcome. - Avoiding: A person may recognize that a conflict exists and wants to withdraw from it or suppress it. - Yielding: One party seeks to appease an opponent by placing the opponent’s interests above his or her own. - Compromising: When each party to the conflict seeks to give up something, sharing occurs, resulting in a compromised outcome. In compromising, there is no clear winner or loser, and each party intends to give up something. Chapter 7 Power and politics • Power ◦ Capacity that a has to influence the behaviour of b so that B acts in accordance with A’s wishes • Dependancy ◦ B’s relationship to A when A possess something that B needs ▪ Dependency relies on ▪ Importance ; things you control must be important ▪ Scarcity; resources must be preserved as scarce ▪ Non-substituability; the resource cannot be substituted with something else ◦ Types of power - French and raven - know for final ▪ Coercive ▪ Based on fear ▪ Reward ▪ Based on the ability to distribute rewards that others view as valuable ▪ Good to use through disciplinary action ▪ Fear that if ppl with abuse others, it will lead to them being fired ▪ Rewards can also be promotions, benefits , travel ▪ Legitimate ▪ Based on position in the organizational hierarchy ▪ Expert ▪ A persons experience or knowledge ▪ Referent ▪ Based on the possession of desirable resources or personal traits ▪ Information ▪ Power based on access and control over information ▪ Have access to information and resources unlike • Responding to power - 1 in 3 ways ◦ Commitment - will do it ▪ The person is enthusiastic about the request and carries the task out ◦ Compliance - will kinda do it ▪ The person goes along with the request grudgingly, putting in minimal effort ◦ Resistance - won’t do it ▪ The person is opposed to the request and tries to avoid it Snap ? • Power did can rely on ? ◦ Legitimate power ◦ Coercive power ▪ Nobody could book an appointment with him with the fear their job can be at risk ◦ Expert power ▪ He was super smart in the industry and he didn’t make any bad decisions so he was thought of as an expert • Snap employees respond ? ◦ Compliance but didn’t completely agree • Do diff ◦ Consult team ◦ Have healthy conflict so others can voice their opinion that might make an idea together Influence tactics • Rational persuasion ◦ Use facts and data to logically and or rationally present ideas • Inspirational appeals ◦ Appeal to values, ideas and goals • Consultation ◦ Get other involved to support objectives • Ingratiation ◦ Use flattery, goodwill and friendliness • Personal ◦ Appeal to loyalty and friendship • Exchange ◦ Offer flavours or benefits in exchange for support • Coalitions ◦ Get there support of other people to provide backing when making a request • Pressure ◦ Use demands , threats and reminders to get someone to do something • Legitimacy ◦ Claim authority / right to make request or show that it supports organizational goals/ policies Empowerment • Freedom and ability of employees to make decisions and commitments • 2 views ◦ At top ; employees empowered by management ◦ Bottom; employees empower themselves through risk taking and growth • Conditions for true empowerment ◦ There must be a clear definition of the values and mission of the organization ◦ The organization must help employees acquire the relevant skills ◦ Employees need to be supported in their decision making and not criticized when they try to fo something extraordinary ◦ Employees need to be recognized for their efforts • Characteristics for empowered people ◦ Sense of self-determination ▪ Employees are free to choose hot to do their work ‘ they’re not micromanaged ◦ Sense of meaning ▪ Employees feel that their work is important to them; they care about what they are doing ◦ Sense of competence ▪ Employees are confident about their ability to do their work well; they know they can perform ◦ Sense of impact ▪ Employees believe they can have influence on their work unit; others listen to their ideas Abuse of power • People wo harass others in the workplace are typically abusing their power position Politics • Activities that influence the distribution of advantages and disadvantages within the organization Types of political activity • Attacking or blaming others • Using information to gain advantage ◦ Withholding important information to gain an advantage yourself • Building support for ideas • Praising others • Blaming others • Building coalitions • Associating with influential people • Creating obligations • Impressions management Courageous followership - chaleff • The study of upward fuller to leader relationship • 5 dimensions of courageous followership ◦ 1. Assume responsibility ▪ Followers are sometimes too subservient and eager to please the leader- this will not provide the necessary balance to a leaders power ▪ Work environments reinforce childhood relationships to authority ◦ 2. Serve ▪ Take care of the leaders we work with ▪ Leaders need people to comfort ad confront them ▪ Ask for clarification and stop worshipping those with fancy job titles ◦ 3. Challenge ▪ Corruption is the result of others being afraid to talk to leaders ▪ Challenge leaders ◦ 4. Participate in transformations ▪ Transformational change requires leadership buy-in ▪ Show tough love - rules apply to leaders as well as everyone below them ◦ 5. Take moral actions ▪ Disobey an executive order and resign if a leader crosses a line - Coercive: dependent on fear; negative results for failure to comply; threat of physical sanctions such as pain, frustration, restriction of movement; power to hurt others; control of economic resources; suspend, demote, unpleasant treatment. People’s response: resistance. - Reward: distribution of rewards viewed as valuable by others; money, favourable performance appraisals, promotions, interesting work assignments, important information, preferred work shifts; counterpart to coercive power; friendliness, acceptance, praise. People’s response: compliance. - Legitimate: result of position in formal hierarchy; positions of authority; acceptance of the authority of the position. People’s response: compliance. - Expert: result of expertise, special skill, or knowledge; powerful source of influence; technological orientation; dependence on experts to achieve goals. People’s response: commitment. - Referent: desirable resources or personal traits; admiration of another and desire to be like that person; similar to charisma; modelling behaviour after someone. People’s response: commitment. - Information: a result of having information, having access to it, or having control of information particularly in the context of high uncertainty. People’s response: compliance. - Commitment: The person is enthusiastic about the request and shows initiative and persistence in carrying it out. - Compliance: The person goes along with the request grudgingly, puts in minimal effort, and takes little initiative in carrying out the request. - Resistance: The person is opposed to the request and tries to avoid it with such tactics as refusing, stalling, or arguing about it. - Rational persuasion: using facts and information to present ideas and back up your conclusion and recommendations - Inspirational appeals: requesting the support of others by appealing to their values and goals - Consultation: asking for ideas from others; getting others involved even at a basic level - Ingratiation: complimenting, flattering, creating goodwill, and then making a request - Personal appeals: reminding others of their obligations, friendships, and loyalty before making a request - Exchange: showing or offering to others what you think you can do for them in return for their support of your request - Coalitions: getting the support of others to provide backing when making a request; associating with others who can complement your power base - Pressure: using threats, demands, and reminders on others as a way of influencing them - legitimacy: claiming the authority to make your request; showing that your request supports organizational goals or policies Chapter 8 Leadership • Trait theories ◦ Born with • Behavioural theories ◦ How you behave , doesn’t matter what your traits are. ◦ Something that can be observed within somebody • Important behavioural studies ◦ Ohio state ▪ Sought to identify independent dimension of leadership behaviour ▪ Found 2 key dimensions of leadership behaviour ▪ Initating structure Extent to which leader is likely to define and structure their role and the roles of the employees in order to attain goals ▪ Consideration Extent to which a leader to likey to have job relationships characterized by mutual trust, respect for employee’s dead and regard for their feelings ◦ Michigan leadership study ▪ Liekrt ▪ Locate behavioural characteristics of leaders that appeared related yo performance effectiveness ▪ 2 dimensions of leader behaviour ▪ Employee -oriented Leaders emphasize interpersonal relations ▪ Production orientated Leader who emphasizes the technical or task aspect of the job • Contingency theories ◦ Stress the importance of considering the context/situation when examining leadership ▪ Fiedler contingency model ▪ Effective group performance depends upon the proper match between the leader style and the degree to which the situation gives control to the leader ▪ Least preferred co-workers questionnaire determined whether individuals were primarily interested in : Good personal relations with co-workers and thus relationship orientated or Productivity and thus task orientated ▪ Fidler assumed that a persons leadership style is fixed. If the style and situation don’t match, either the leader must change or the situation ▪ Fidler contingency dimensions that determine the situation; Leader-member relations Degree of confidence, trust and respect members have for a leader Task structure Degree to which jobs and job assignment are structured Position power Degree to which lease has control over power variables ( hiring, firing , promotions) ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Situational leadership - Hersey and Blanchard Model focuses on follower readiness Leaders should adopt their leadership style based on a followers readiness to perform in any given situation Styles Directing Coaching Supporting Delegating Path-goal theory - Evan and house It is the leaders job to assist followers in a training their goals and to provide the necessary direction and or support to ensure that their individual goals are compatible with the overall goals of the organization 3 guidelines to follow Determine the outcomes subordinates want Reward individuals with their desired outcomes when they perform well Let individuals know what they need to do to receive rewards 4 leadership behaviours Directive Inform subordinates of expectations; give guidance Supportive Be friendly and approachable; show concern for status, well-being and needs of subordinates Participative Consult with subordinated; solicit suggestions; take suggestions into consideration Achievement orientated Set challenging goals; expect subordinated to perform at highest level; continuously see improvement in performance; have confidence in highest motivations of employees • • Charismatic leadership House's charismatic leadership theory ◦ Followers make attributions of heroic or extraordinary leadership ability when they observe certain behaviours • Four characteristics of charismatic leaders ◦ Have a vision , and can articulate it ◦ Are willing to take personal risks to achieve the vision ◦ Are sensitive to followers needs ◦ Exhibit behaviours that are out of the ordinary • Charisma ◦ Can’t really change it ◦ A lot of people are promoted based on this characteristic ◦ How they look like , dress like and present themselves ◦ Can easily persuade their vision in a crowd • Weaknesses ◦ Sometimes rely too much on this trait that might not always get the work done. No depth behind their action ◦ Lack humbly and can be egotistical ◦ Can develop cult followings Transactional leader • Leaders who guide or motivate followers • Doing the bare minimum Transformational leaders • Inspire followers to go beyond their one self-interests for the good of the organization. Have profound and extraordinary effect on followers Transformational leaders • Idealize influence Provides vision and a sense of mission, instills pride, gains respect and trust • Inspirational motivation Communicated high expectations, uses symbols to focus efforts, express importance purposes in simple ways • Intellectual stimulation Promotes intelligence, rationality and careful problem solving • Individualized consideration Gives personal attention, treats each employee individually, coaches, advises Strengths of transformational leadership • Push you to do better Weaknesses • Push you too hard • Overused and has lost its meaning • Difficult to teach transformational leadership and charisma Authentic leadership • Know who they are and act on their individual values • Takes emended courage to remain authentic no matter the situation • Remain true to who they are regardless of who is around them Strengths • Gain respect from employers • Easier to know your what motivates you • Consistence and reliable Weakness • Stubborn • Might be taken advantage of • Some situations need different leadership styles • Can be biased to those who share you values Servant leadership • Robert green leaf • Leaderships exist to serve first and lead second • Continuum of leaders • Strengths ◦ Can lessen the power distance ◦ Knows the operations of the business better • Weaknesses ◦ People take advantage of you ◦ Micromanagement ◦ Increases dependancy - Manager: engages in day-to-day caretaker activities; exhibits supervisory behaviour; administers subsystems within the organization; asks “how” and “when” to engage in standard practice; acts within the established culture of the organization; uses transactional influence; relies on control strategies to get things done by subordinates; a status quo supporter and stabilizer - Leader: formulates long-term objectives for reforming the system; exhibits leading behaviour; innovates for the entire organization; asks “what” and “why” to change standard practice; creates vision and meaning for the organization; uses transformational influence; uses empowering strategies to make followers internalize values; a status quo challenger and change creator - The directive leader lets followers know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. This closely parallels the Ohio State dimension of initiating structure. This behaviour is best used when individuals have difficulty doing tasks or the tasks are ambiguous. It would not be very helpful when used with individuals who are already highly motivated, have the skills and abilities to do the task, and understand the requirements of the task. - The supportive leader is friendly and shows concern for the needs of followers. This is essentially synonymous with the Ohio State dimension of consideration. This behaviour is often recommended when individuals are under stress or otherwise show that they need to be supported. - The participative leader consults with followers and uses their suggestions before making a decision. This behaviour is most appropriate when individuals need to buy in to decisions. - The achievement-oriented leader sets challenging goals and expects followers to perform at their highest level. This behaviour works well with individuals who like challenges and are highly motivated. It would be less effective with less capable individuals or those who are highly stressed from overwork. - Level 5 leaders represent one type of charismatic leader. They are not ego driven, but are ambitious and aggressive for the benefit of the company not themselves. They generate extraordinary results without loud representation or publicity; are capable; and have leadership competence, team skills, managerial competence, skills to stimulate others to high performance, professionalism, and personal humility that distinguishes them from other leaders. - Contingency theories propose that leadership effectiveness depends on the situation. The most effective leaders are able to adjust their style, depending on the situation. Leaders monitor followers and organizational events and are able to adjust their behaviours accordingly. - Hershey and Blanchard’s Situational Leadership theory proposes that effective leaders adapt their leadership style according to how willing and able a follower is to perform a task. - Leader behaviours are telling, selling, participating, and delegating. - Relationship behaviours are high and low. - Follower readiness is able and willing, able and unwilling, unable and willing, and unable and unwilling. - Women are less preoccupied with status and like to lead though inclusion and consensus-building. - Women possess better interpersonal skills and are better suited to consensus-building. - Women tend to view business holistically, are more mindful of employees, are more aware of the company’s image, and are willing to make a long-term investment in the company to improve it. They rely on the formal authority of their position for their influence base. - Men are more likely to use a directive style and rely on the formal authority of their position. Men like to focus on status and are less likely to share power. Men traditionally are effective in rigid structures of traditional organizations, and in competitive situations. - Women tend to be better negotiators and they are less likely to focus on wins, losses, and competition. - Women seem to score higher in leadership effectiveness in general as they are able to get extra effort from subordinates. - Differences between men and women are diminishing and both genders need to focus on flexibility, teamwork, trust, and information sharing. - The challenges confronting men and women leaders are the same. Both male and female CEOs focus on the same kinds of issues. Social effects have an impact on both gender’s leadership styles; hard decisions are probably made exactly the same way by both men and women Chapter 9 Decisions • The choice make from two or more alternatives • Problem ◦ Discrepancy between some current state of affairs and some desired state • Opportunity ◦ Occurs when something implanted happens, giving rise to thoughts about new ways of proceeding • Rational decision -making ◦ Makes consistent, values-maximizing choices within specified constraints Rational design making model • Problem clarity • Known options • clear preferences • Constant preferences • No time or cost constraint • Maximum payoff How individuals actually make decisions • Bounded rationality ◦ Limitations on ones ability to interpret, process and act on information ◦ Limited number of alternatives by choosing a satisfactory alternative • Satisfying ◦ Identifying a solution that is “ good enough” . Person chooses the first acceptable option rather than the optimal one • Intuition ◦ A non-conscious process created out of a person’s many experience - uncertainty Judgement shortcuts • Overconfident bias ◦ Error in judgment that arises from being far too optimistic about ones own performance • Anchoring bias ◦ Tendency to fixate on initial information and fail to adequately adjust for subsequent information • Confirmation bias ◦ Tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgements • Availability bias ◦ Tendency for people to base their judgement on information that is readily available to them rather than on complete data • Escalation of commitment ◦ Increased commitment to a previous decision despite clear evidence suggesting that decision may have been incorrect • Randomness error ◦ Tendency of individual to believe they can predict the outcome of random events • Risk aversion ◦ Tendency to prefer a sure gain of a moderate amount over a riskier outcome , even if the riskier outcome might have a higher expected payoff • Hindsight bias ◦ Tendency to believe false after the outcome of an event is actually known that one could have accurately predicted an outcome Effectiveness • Accuracy - group • Speed - individual • Creativity - group • Acceptance - group Efficiency • Generally individual decision making is usually faster and more efficient • Group decision making consumes more work hours than if an individual tackled the same problem Group think • Phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority or unpopular views Group shift • Phenomenon in which the initial position of individual group members become exaggerated because of the interactions of the group Group decision making techniques • Interfacing groups Group members interact with each other face to face • Brainstorming Specific techniques may vary Encourages all group members to share ideas while withholding any criticism of those ideas • Nominal group techniques Individual members meet face to face to pool their judgements in a. Systematic but independent fashion Ethics • The study of moral values or principals that guide our behavior and inform us whether actions are right or wrong • Hallmarks of business integrity Nash proposed 4 basic values that drives society’s definition of business integrity Honest Reliable Fair Pragmatic Is there better ways for decision makers to spend their time or are we doing this just because we’ve always done it this way • Corporate social responsibility Organizations responsibility to consider the impact of its decision on a broad range of stakeholders and not just shareholders • Six steps: • - Define the problem: Determine the desired state of affairs versus the present existing • conditions. • - Identify the criteria: Decide what is relevant when making the decision. • - Allocate weights to the criteria: Prioritize what is important. • - Develop alternatives: Do not appraise, just list the options available. • - Evaluate the alternatives: Rate them on the basis of advantages and disadvantages. • - Select the best alternative: Choose the alternative that has the most • strengths/advantages. • For this model to be useful, it is assumed that the situation includes the following: • - Problem clarity: The situation (problem) is clear and unambiguous and agreed upon. • - Known options: All the options are known and freely available to the decision makers • as well as the consequences associated with each alternative. • - Clear preferences: Alternatives can be weighted according to objective measures. • - Constant preferences: Preferences do not change or vary over time. • - No time or cost constraints: The decision maker is given access to unlimited resources • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • in order to make his or her decision. - Maximum payoff: The decision of which alternative to pick is done in order to yield the maximum payoff without bias. - Overconfidence bias: This error in judgment arises from being too optimistic about one’s own performance. Those whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. - Anchoring bias: It’s the tendency to fixate on initial information and fail to adequately adjust for subsequent information. - Confirmation bias: It represents the application of selective perception. We seek out information that reaffirms our past choices, and discount those that contradict them. - Availability bias: It’s the tendency for people to base their judgments on information that is readily available to them rather than on complete data. - Escalation of commitment: A person stays with a decision even when there is clear evidence that it is wrong. - Randomness error: It’s the tendency to believe we can predict the outcome of random events. People like to believe that they have some control over their world and their destiny. - Risk aversion: It’s the tendency to prefer a sure thing over a risky outcome. Ambitious people with power that can be taken away appear to be especially risk averse. Risk aversion is not always bad; sometimes it is better to play it safe. - Hindsight bias: It’s the tendency to believe falsely, after the outcome is actually known, that we could have accurately predicted the outcome. It reduces our ability to learn from the past. We think that we are better at making predictions than we really are. - Techniques used in group decision making include the following: • Interacting groups is the most common form of group decision-making. The group members meet face to face to communicate with each other to arrive at a decision. • Brainstorming uses an idea-generation process that encourages many alternatives in a criticism-free environment. Brainstorming generates many ideas, but might not be very efficient. • In nominal group technique, the members meet as a group but first generate independent ideas about the problem. Each member presents an idea to the group, then the group discusses, evaluates, and ranks the ideas for a final decision. • Electronic meetings provide anonymity, honesty, and speed in group decisionmaking. Members participate through technology that allows large numbers to participate at the same time. Chapter 10 Organizational Culture • Characteristics ◦ Innovation and risk-taking ▪ Degree to which employee are encouraged to beinfovative and take risks ◦ Attention to detail ▪ Degree to which employees are expected to exhibit precision, analysis, and attention to detail ◦ Outcome orientation ▪ Degree to which management focuses on results or outcomes rather than the techniques and process ◦ People orientation ▪ Degree to which management decision take into consideration the effect of outcomes on people within the organization ◦ Team orientation ▪ Degree to which work activities are organized around team rather then individuals ◦ Agreessiveness ▪ Degree to which people are aggressive and competitive rather than easygoing ◦ Stability ▪ Degree to which organizational activities emphasize maintaining the status quo in contrast to growth • Cultural teams ◦ Structure ▪ Formal arrangements and linkages among members and groups that specify work activities and stasis and allow them to be completed. ◦ Beliefs ▪ The understanding of how objects and ideas relate to each other ◦ Artifacts ▪ Aspect of an organizations culture that you see, hear and feel ▪ Plaques , stories ◦ Values ▪ The stable , long-lasting beliefs about what is important ◦ Assumptions ▪ The taken-for -granted notions of how something should be in an organization. Usually held unconsciously and not written down anywhere • Cultures funcitons ◦ Social glue that helps hold an organization together ▪ Defines boundaries ▪ Conveys a sense of identity • Dominant culture ◦ Expresses the core vales that are shared by a majority of the organization • Sub cultures ◦ Tend to develop in large organization to reflect common problems, situation or experiences Liability of organizational culture • Barriers to change ◦ Culture can become a barrier to change. The cultural environment may become so entrenched that it will not change ▪ That’s how we do it around here • Barriers to diversity ◦ Diverse people may not conform to the current organizational culture. This creates a paradox for organizations who want to maintain their existing culture while encouraging diversity • Barrier to mergers and acquisitions ◦ Historically , companies only looked at financial statements and product synergy. But many M&A have failed because the cultures didn’t integrate. Successful M&A’s factor in the cultural integration of the companies Change management approaches • Developmental change ◦ Simplest type of change ◦ Improve what already exists ◦ New state is a prescribed enhancement of the old state ◦ Outcome van be known and quantifies in advance of implantation Training programs • Transitional change - Lewin’s 3 step model ◦ Redesign and implementation of a desired state that solves an old state problem 1. Unfreezing the status quo 2. Moving to a new state 3. Refreezing the new change to make it permanent ◦ Transitional changer Must dismantle old state in a systematic way while putting in place the new state Failure rate is high b/c of this paradox • Kotter’s 8 step model ◦ Establish a sense of urgency By creating a compelling reason for why change is needed ◦ Form a coalition With enough power to lead the change ◦ Create a new version To direct the change and strategies for achieving the vision ◦ Communicate the vision ◦ ◦ ◦ ◦ • ◦ ◦ ◦ ◦ Throughout the organization Power others to act On the vision by removing barriers to change and encouraging risk-taking and creative problem solving Plan for, create , and reward short term “wins" That move the organization toward the new vision Consolidate improvements Reassess changes and make necessary adjustments in the new programs Reinforce the changes By demonstrating the relationship between new behaviours and organizational success Transformational change Radical shift of strategy, structure, systems, processes, or technology, so significant that it requires a shift of culture, behaviour and mindset to implement successfully and sustain over time Journey of transformation is not straight line Learning and course correcting are the 2 most important aspects Deviation from the plan is not the problem … the ability to course correct is • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • - Organizational culture: a system of shared meaning and common perception held by members of an organization that distinguishes it from other organizations Seven dimensions of culture: - Innovation and risk-taking: the degree to which employees are encouraged to take risks and be innovative - Attention to detail: the degree to which employees are expected to exhibit precision and analysis - Outcome orientation: the degree to which management focused on results rather than techniques and processes to achieve results - People orientation: the degree to which managerial decisions consider effect of outcomes on people within the organization - Team orientation: the degree to which work is organized around teams rather than individuals - Aggressiveness: the degree to which people are competitive rather than easygoing - Stability: the degree to which organizational activities emphasize maintaining the status quo in contrast to growth - Founders have a major impact on an organization’s culture. Culture can be created in three ways: (1) founders hire and keep employees that think the way they do; (2) they indoctrinate and socialize employees to think the way they do; and (3) the founders’ behaviour acts as a role model, encouraging employees to identify with the founders and internalize those beliefs, values, and assumptions. When the organization succeeds, the founders’ vision is seen as a primary determinant of that success. At that point, the founders’ entire personality becomes embedded in the culture of the organization. - Employees learn culture through socialization and orientation. - Culture continues through selection and recruitment of individuals who fit into the culture, though top management behaviour and actions and though continued socialization within the organization. - Barrier to change: Shared values are not in agreement with those that will further the organization’s effectiveness; entrenched culture may not be appropriate in a rapidly changing environment; practices that led to previous successes no longer match up well • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • with environmental needs. - Barrier to diversity: Strong cultures—supported by formal rules and regulations—create pressure to conform because they limit the range of acceptable values and styles; strong cultures can undermine formal corporate diversity policy, support institutional bias, or be insensitive to individual differences; formal rules and regulations ensure predictable behaviour. - Barrier to mergers and acquisitions: Cultural compatibility is the prime concern; experience shows that mergers can readily fail due to problems with integrating ideas, values, and systems - Lewin’s three step model: It comprises unfreezing, moving, and refreezing; the unfreezing step includes driving forces and restraining forces. - Kotter’s first four steps are part of the unfreezing step (in Lewin’s model): Establish a sense of urgency to make changes by giving a convincing reason for the change; form coalitions with those in power who will support the change, create, use and communicate the vision; allow the vision to be part of the reason for change. - Kotter’s steps 5, 6, and 7 are part of the moving step (in Lewin’s model): “Moving” needs employees to be empowered and encouraged in order to carry out the vision; employees should be involved in and be rewarded for the short, small steps that will carry the organization forward in its quest for the vision; finally, management should consolidate improvements, reassess the changes, and then make further changes. - Kotter’s step 8 is similar to refreezing (in Lewin’s model): This step is done by reinforcing the changes that have been made; why the changes were made in the first place is reiterated and reinforced when, most importantly, the relationship between the actions of employees and the success of the organization is reinforced and made well known. Individual resistance: - Self-interest; misunderstanding and lack of trust; different assessment; low tolerance for change; cynicism Organizational resistance: - Structural inertia: Organizations have built-in mechanism to produce stability, such as the selection process, training, socialization, and formalization; employees are hired based on their fit with the organization and then shaped and directed to behave in certain ways. - Limited focus of change: Organizations have a number of interdependent systems; one system can’t be changed without affecting the others; limited changes in subsystems tend to be nullified by the larger system. - Group inertia: Group norms may constrain changes individuals wish to make (e.g., union-management relationships). - Threat to expertise: Changes in organizational patterns can threaten the expertise and specialized skills of certain groups. - Threat to established power relationships: Any redistribution of decision-making authority impacts long-established power domains; participative decision making and self-managed work teams could be a threat. - Threat to established resource allocations: Groups are satisfied with the status quo; reduction in budgets, cut in staff size, and the change’s effect on future allocations can be threatening. Tactics: - Education and communication: Communicating the logic of a change to employees can reduce resistance. • • • • • • • • • • • • • • • • • - Participation and involvement: It is difficult for individuals to resist a change decision in which they participated, but they have to have some expertise to make a meaningful contribution. - Building support and commitment: Providing counselling and/or new-skills training may facilitate adjustment and help employees emotionally commit to the change. - Developing positive relationships: People are more willing to make changes if they trust the managers implementing them. - Implementing changes fairly: It’s important to make that changes are implemented fairly. - Manipulation and co-optation: These are covert influence attempts. They could be seen as power or political steps in getting employees to accept change. - Selecting people who accept change: People who adjust best to change are those who are open to experience and are willing to take risks. Organizations can facilitate change by selecting people predisposed to accept it. - Explicit and implicit coercion: This tactic incudes the use of political and power tactics to force change. Examples of coercion are threats of transfer, loss of promotions, negative performance evaluations, and pay cuts.
