Chapter 5
Panning
1. Planning and Strategy
a. Planning, Strategy and Strategic Management
b. Planning: Coping with Uncertainty
i. Setting goals and deciding how to achieve them
c. Strategy: Setting Long-Term Direction
i. A strategic plan, sets the long-term goals and direction for an
organization.
ii. Financial strategy, marketing strategy, and human resource strategy.
d. Strategic Management
i. A process that involves managers from all parts of the organization in
the formulation and the implementation of strategies and strategic
goals.
ii. Middle managers are the ones asked to understand and implement the
strategies.
iii. Process that involves top managers, middle managers, and first-line
managers in the formulation, implementation, and execution of
strategies and strategic goals to advance purpose of
e. Why Are Planning and Strategic Management Important?
i. Provide direction and momentum
1. Can help people focus on the most critical problems, choices,
and opportunities.
ii. Encourage new ideas
1. Can help encourage people by stressing the importance of
innovation in achieving long-range success.
iii. Developing a sustainable competitive advantage (the ability of an
organization to produce goods or services more effectively than its
competitors do, thereby outperforming them)
1. Must have products that are valuable, rare, and non-imitable
f. Planning and Strategic Management
g. Providing Direction and Momentum
h. Encouraging New Ideas
i. Developing a Sustainable Competitive Advantage
j. Mission, Vision, and Value Statements
i. Mission statement: expresses the purpose of the organization.
1. Identifies the goods or services the organization provides and
will proves.
2. Also gives the reason for providing them. (example: to make a
profit)
ii. Vision statement: expresses what the organization should become,
where it wants to go strategically.
1. People are happier and lead more meaningful lives when they
are directed by personal vision statements.
iii. Value statements: also called a core values statements, expresses what
the company stands for, its core priorities, the values its employees
embody, and what the products contribute to the world.
1. Without a statement, the company will lack soul
2. Fundamentals of Planning
a. Three Types of Planning for Three Levels of Management
i. Strategic Planning by top Management
1. Using their vision and mission statements top managers do
strategic planning.
2. Strategic planning: determine what the organization’s longterm goals should be for the next 1-5 years with the resources
expected to have available.
3. Should communicate general goals about growth and profits as
well as WAYS to achieve them.
ii. Tactical Planning by Middle Management
1. The strategic priorities and policies are then passed down to
middle managers who must do tactical planning
2. Tactical planning: they determine what contributions their
departments or similar work units can make with their
departments or similar work units can make with given
resources during the next 6-24 months.
iii. Operational Planning by First-Line Management
1. Middle managers pass the plans down to middle managers who
have to the operational planning.
2. Operational Planning: they determine how to accomplish
specific tasks with available resources withing the next 1-52
weeks.
3. Goals &Plans
a. Goal: a specific commitment to achieve a measurable result within a state
period of times. May be long term or short term.
b. Long-Term and Short-Term Goals
i. Long-term Goals
1. Def.: referred to as strategic goals. Tend to span 1-5 years and
focus on achieving the strategies identified in a company’s
strategic plan.
2. Example: increase revenue from new customers by 10% over
next 12 months.
ii. Short-term Goals
1. Def.: referred to as tactical or operational goals, or just plan
goals.
2. Span 12 months and are connected to strategic goals in a
hierarchy.
c. The Operating Plan and Action Plan
i. Operating Plan
1. Def.: a plan that “breaks long-term output into short-term
targets or goals.
2. Turn strategic plans into actionable short-term goals and action
plans
ii. Action Plan
1. Def.: defines the course of action needed to achieve a stated
goal.
2. Outlines the tactics that will be used to achieve a goal.
3. Each tactic contains a projected date for completing the desired
activities.
d. Standing Plans and Single-Use Plans
i. Standing Plan
1. For activities that occur repeatedly over a period of time
ii. Single-use Plan
1. For activities not likely to be repeated in the future
4. Promoting Consistencies in Goals: SMART Goals, Management by Objectives, and
Goal Cascading
a. SMART Goals
i. Specific
1. Goals should be stated in specific terms rather than vague
ii. Measurable
1. Goals should be quantifiable (90% of planes should arrive
within 15 minutes)
2. There should be some way to measure the degree to which goal
has been reached.
iii. Attainable
1. Goals should be challenging but also realistic and attainable
2. Set goals that are quite ambitious to challenge people to meet
high standards.
3. If goals are too easy people wont make much effort
4. If goals are impossible employees wont bother trying. Or they
will try and continually fail or cheat
iv. Result-oriented
1. Goals should support the organization’s vision
2. Action oriented verbs – “to complete”, “to acquire”, “to
increase”
v. Target Dates
1. Goals should specify deadline dates when they are to be
attained.
2. Set a target date by which this goal is to be achieved.
3. Allows lower-level managers and employees to have a clear
time frame in which they know what they are expected to do.
b. Relationship Between Goal Difficulty and Performance
i. If goal is too easy, goals won’t impel people to make an effort
ii. If impossible then employees won’t even bother trying
c. Management by Objectives: The Four-Step Process for Motivating Employees
i. Managers and Employees Jointly Set Objectives for the Employee
1. When you sit down with your manager and the two of you
jointly set objectives for you to attain.
ii. Managers develop action plans
1. Once objectives are set the employees are encouraged to
prepare an action plan for attaining them.
2. Implementation of the plans can take between six and 18
months depending on the complexity of the goal.
3. Also reduces procrastination
iii. Managers and employees periodically review the employee’s
performance
1. You and manager should meet reasonably often to review
progress
2. Frequent communication necessary to know how well your
doing in meeting the objectives.
3. Managers should give feedback and objectives should be
updated or revised if necessary for new realities
4. Feedback essential to improve performance
iv. The manager makes a performance appraisal and rewards the
employee according to results
1. At the end of 6-12 months you and subordinate should meet to
discuss the results, comparing performance with initial
objectives.
2. MBO cycle begins new after this step
d. Three Types of Objectives Used in MBO
i.
e. Cascading Goals: Making Lower-Level Goals Align with Top Goals
i. Top Management and Middle Management Must Be Committed
ii. The Goals Must be Applied Organizationwide
iii. Goals Must “Cascade” – be linked consistently Down through the
Organization
1. Cascading Goals: process of ensuring that the strategic goals
set at the top level align, or “cascade” downward with more
specific short-term goals at lower levels within an organization,
including employees’ objectives and activities.
f. The Importance of Deadlines
i. Deadlines are essential to goal setting
ii. Whole purpose of planning and goals is to deliver to a client specified
results within a specified period of time, deadlines become a great
motivator for you and people working for you.
iii. Deadlines mislead you into focusing too much on immediate results
and lead to ignore overall planning.
iv. Help pay attention to details that realize the big picture
v. Provide mechanism for giving ourselves feedback
5. The Planning/Control Cycle
a. Has two planning steps and two control steps
i. Make the plan
ii. Carry out the plan
iii. Control the direction by comparing results with the plan
iv. Control the direction by taking corrective action in two ways
(correcting deviations in plan being carried out or improving future
plans)
Chapter 8
Culture and Structure
1. Aligning Strategy, Culture, and Structure
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How to Stand Out in a New Job: Fitting into an Organization’s Culture in the First 60
Days
Southwest Airline Video Case
Organizational Culture: The Shared Assumptions That Affect How Work Gets Done
Drivers and Flow of Organizational Culture
Organizational Structure: Who Reports to Whom and Who Does What
2. What Kind of Organizational Culture Will You Be Operating In?
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Three levels of Organizational Culture
o Level One: Observable Artifacts
 Physical manifestations such as manner of dress, awards, myths and
stories about the company rituals and ceremonies, and decorations, and
visible behavior exhibited by managers and employees.
 Example: “elephant in the room” – an artifact for a company to
encourage honesty and constructive communication among emplyees.
o Level Two: Espoused Values
 Espoused values definition: explicitly stated values and norms
preferred by an organization.
 Enacted values: represent values and norms actually exhibited in the
organization.
 Example: CVS Health recognized gap between espoused values (“we
sell health products”) and enacted values (“we also sell tobacco
products” and made strategic change in alignment. CEO announced
they would cease selling tobacco products.
o Level Three: Basic Assumption
 Represent the core values of an organization’s culture – those that are
taken for granted and are difficult to change.
Four Types of Organizational Culture
o Clan Culture
 Def.: has an internal focus and values flexibility rather than stability
and control.
 Encourages collaboration among employees, striving to encourage
cohesion through consensus and job satisfaction
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View customers as partners
If employees are given a rewarding place to work in return the firm
will get innovation, loyalty, and world-class customer service
 End results are profitable and low turnover rate
o Adhocracy Culture: A Risk-Taking Culture Valuing Flexibility
 Has an external focus and values flexibility
 Employees encouraged to take risks and experiment with getting things
done
 Well suited for start-up companies
o Market Culture: A Competitive Culture Valuing Profits over Employee
Satisfaction
 Market culture: strong external focus and values stability and control
 Employees expected to work hard, react fast, and deliver quality work
on time – those who deliver results are rewarded.
 Customers, productivity, and profits take precedence over employee
development and satisfaction
 Example: ubers management has allowed competitive and sexual
harassment behavior and compant is struggling to recover
o Hierarchy Culture:
 Hierarchy culture: an internal focus and values stability and control
over flexibility.
 Companies are apt to have a formalized, structure work environment
aimed at achieving effectiveness through a variety of control
mechanisms that measure efficiency, timeliness, and reliability in the
creation and delivery of products.
 Example: AMAZON with vast shipping processes. Instead of focusing
on competitors they invest in how to get better
Competing Values Framework
o Provides a practical way for managers to understand, measure, and change
organizational culture.
The Importance of Culture
o An organization’s culture matters – can be a source of competitive advantage
o Employees have more positive work attitudes when working in organizations
with clan cultures
o Clan and market cultures are more likely to deliver higher customer
satisfaction and market share
o Operational outcomes, quality, and innovation are more strongly related to
clan, adhocracy, and market cultures than to hierarchical ones
o An organization’s financial performance (profit and revenue growth) is related
to market and hierarchy culture
o Companies with market cultures tend to have more positive organizational
outcomes
3. What Does It Mean to “Fit” Anticipating a Job Interview
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Interviewers use four most frequently asked interview questions that don’t seem like
they have anything to do with your performance in previous jobs, but the interviewer
is trying to find out how well you will fit in.
o Person-organization fit: reflects the extent to which your personality and
values match the climate and culture in an organization.
How do employees learn culture?
o Employees should write down their strengths, weaknesses, and values and
then do same for organization they’re interviewing with.
o Can then prepare questions to ask the interviewer about how well they might
fit.
o Example: if being recognized for hard work is important to you, ask the
interviewer how the company rewards performance. If answers don’t show
strong link, then you’ll have a low person-organization fit and won’t be happy
working there.
4. Organizational Structure
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Organizational structure:
o A formal system of task and reporting relationships that coordinates and
motivates an organization’s members so that they can work together to
achieve the organization’s goals.
o Concerned with who reports to whom and who specializes in what work.
The Organization: Three Types
o For-Profit Organizations
 Formed to make money, or profits, by offering products or services.
o Nonprofit Organizations
 These are formed to offer services to some clients, not to make a profit
 Examples: hospitals, colleges
o Mutual-benefit organizations
 Voluntary collectives whose purpose is to advance members’ interests
 Examples: unions, trade associations
The Organization Chart
o Def.: a box-and-lines illustration showing the formal lines of authority and the
organization’s official position or work specializations.
o Vertical Hierarchy of Authority: Who Reports to Whom
 In two-person organization – the owner might communicate with
secretary
 In complex organization – president talks principally to vice
presidents, who in turn talk to the assistant vice presidents, and so on.
o The Horizontal Specialization: Who Specializes in What Work
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Strong Organization Culture Vs Weak Organizational Culture
o Strong culture is set of habits, norms, expectations, traditions, symbols, values,
and techniques that greatly influence the behavior of organizations members.
o Weak culture is that individualistic whereby norms, symbols, and traditions
have little impact on behavior.
Common Elements of an Organization by Edgar Schein
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o He proposed four common elements of organizations
1. Common Purpose: The Means for Unifying Members
a. Organization without purpose begins to drift and become
disorganized.
b. Common purpose def.: unifies employees or members and gives
everyone an understanding of the organization’s reason for being.
2. Coordinated Effort: Working Together for Common Purpose
a. Coordinated effort def.: the coordination of individual efforts into a
group organization wide effort.
b. Individuals can make a difference but cant do everything by
themselves
3. Division of Labor: Work Specialization for Greater Efficiency
a. Division of Labor def.: aka work specialization is the arrangement
of having discrete parts of a task done by different people.
b. Example: Two person crew on boat – one steers the boat and other
works the nets.
c. Results in greater efficiency
4. Hierarchy of Authority: The Chain of Command
a. Hierarchy of Authority def.: is a control mechanism for making
sure the right people do the right things at the right time.
b. People need to have more authority
c. Without tiers its difficult to get things done
Common Elements of an Organization: Three more elements
5. Span of Control: Narrow (or tall) vs. Wide (or flat)
a. Def.: refers to number of ppl reporting directly to a given manager.
b. Narrow – manager has limited amount of ppl reporting
c. Wide – manager has several people reporting
6. Authority, Responsibility, and Delegation: Line vs. Staff Positions
a. Authority: right of inherent in a managerial position to make
decisions, give orders, and utilize resources.
b. Responsibility: obligation you have to perform the tasks assigned
to you.
c. Delegation: process of assigning managerial authority and
responsibility to managers and employees lower in the hierarchy.
d. Line managers: have authority to make decisions and usually have
ppl reporting to them
e. Staff personnel: have authority functions; they provide advice,
recommendations, and research to line managers
7. Centralized Vs. Decentralization of Authority
a. Centralized authority: important decisions are made by higher-level
managers
b. Decentralized authority: important decisions are made by middlelevel and supervisory-level managers.
c.
5. Basic Types of Organizational Structures
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Organizational Design
o Def.: concerned with designing the optimal structure of accountability and
responsibility that an organization uses to execute its strategies.
o Traditional designs: simple, functional, divisional, and matrix structure
Simple Structure
o Simple structure: has authority centralized in a single person, a flat hierarchy,
few rules, and low work specialization
o Example: small mom-and-pop firms
o Example: apple began as two-man start-ups that later became large.
Functional Structure
o People with similar occupational specialties are put together in formal groups.
o Example: manufacturing company will group people with similar work skills
in different departments.
Divisional Structure
o People with diverse occupational specialties are put together in formal groups
by similar products or services, customers or clients, or geographic regions.
Structure
The Horizontal Design
o Aka team-based design, teams or workgroups, either temporary or permanent,
are used to improve collaboration and work on shared tasks by breaking down
internal boundaries.
o
Chapter 9
Human Resource Management
1. Strategic human resource management
a. Definition: consists of developing a systematic comprehensive strategy for
a) understanding current employee needs and b) predicting future employee
needs.
Understanding current employee needs: job analysis and job description and job
specification.
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Human Resource Management: consists of the activities managers
perform to plan for, attract, develop, and retain an effective workforce.
- Example: is it important to have loyal, innovative, smart,
passionate employees who will give their best to promote
customer service? Who should be recruited? How should they
be trained? Best way to evaluate their performance? Answers
should be with the firms strategic mission.
Social capital/human capital
- Human capital: is the economic or productive potential of
employee knowledge, experience, and actions.
- Social capital: the economic productive potential of strong,
trusting, and cooperative relationships. Can help you land a
job. Trusting relationships lead to more job and business
opportunities, faster advancement, greater capacity to innovate,
and more status and authority.
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Job analysis/specification/description/human resource inventory
A. Job Analysis: is to determine, by observation and analysis the basic
elements of a job.
B. Job description: which summarizes what the holder of the job does
and how and why he or she does it.
C. Job Specification: describes the minimum qualifications a person
must have to perform the job successfully.
The Strategic HRM Process
Understanding Current Employee Needs
Predicting Future Employee Needs
You have to become knowledgeable about the staffing the
organization might need and the likely sources for staffing:
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Recruitment and Selection
a. Internal and External Recruiting: Advantages and Disadvantages
- Internal recruiting: means making people already employed by
the organization aware of job openings.
- Employees need to take responsibility for managing their own
careers.
- External recruiting: means attracting job applicants from
outside the organization.
b. Which External Recruiting Methods Work Best?
c. Selection: How to Choose the Best Person for the Job
- Selection process: the screening of job applicants to hire the
best candidate.
- Background information: Application Forms, Resumes, and
Reference Checks
- Interviewing: Unstructured, Situational, and BehavioralDescription
d. Interviewing: Unstructured
- Involves asking probing questions to find out what the
applicant is like.
e. Interviewing: Structured
- Involves asking each applicant the same questions and
comparing their responses to a standardized set of answers.
f. Realistic job Preview: gives a candidate a picture of both positive and
negative feature of the job and the organization before he or she is hired.
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Orientation, Learning, and Development
a. Types of Learning and Development
b. Orientation and onboarding
Incentives/ Promotion/Benefits
a. Legal Requirements of HRM
b. Legal: Compensation and Benefits
c. Legal: Health and Safety
d. Legal: Equal Employment Opportunity
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e.
f.
g.
h.
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Workplace Discrimination
Affirmative Action
Sexual Harassment
Bullying
performance appraisal
a. Different types of Performance Appraisal
b. Who Should Make Performance Appraisals?
c. Forced Ranking: Grading on a Curve
d. Effective Performance Feedback
Chapter 13
Groups and Teams
2. Group and Team Types
 Define and recognize the types, teams and groups used in organizations.
 Group: defined as two or more freely interacting individuals who share norms, share goals,
and have a common identity.
- Formal group: a specific group assigned by organizations or its managers to
accomplish specific goals. May be a division, a department, a work group, or a
committee.
- Informal groups: group formed by people whose overriding purpose is getting
together for a friendship or a common interest. May be friends who hang out.
 Team: a small group of people with complementary skills who are committed to a common
purpose, performance goals, and approach for which they hold themselves mutually
accountable.
- Work teams: have a clear purpose that all members share. Usually permanent, and
members must give their commitment to teams purpose for them to succeed.
- Project teams: assembled to solve a particular problem or complete a specific task.
Meet virtually or face to face. (group project for a class)
- Cross-functional teams: designed to include members from different areas within
an organization, such as finance, operations, and sales. Work teams or project
teams.
- Self-managed teams: groups of workers who are given administrative oversight for
their task domains.
- Virtual teams: work together over time and distance via electronic media to
combine effort and achieve common goals.
 What are the advantages of each team type?
 Difference between team and group
3. Five Stage Model of Group Development (Tuckman)
a. Know the stages in order
- Forming: process of getting oriented and getting acquainted.
- Storming: characterized by the emergence of individual personalities and roles and
conflicts within the group.
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Norming: conflicts are resolved, close relationships develop, and unity and
harmony emerge.
- Performing: members concentrate on solving problems and completing the assigned
task.
- Adjourning: members prepare for disbandment.
b. Recognize the characteristics that define each stage
c. Remember the Lord of the ring Video Examples to better recognize each step
4. Norms and Conformity
a. Be able to recognize an example of a team enforcing norms on its members
b. Team Roles
c. Team Norms
5. Groupthink
a. Know the symptoms of groupthink, be able to recognize an example of group-think
occurring
b. Understand how the enabling conditions make groupthink more likely
c. Be able to list and understand the remedies for groupthink
a.
b.
c.
d.
Conflict Types and Management
Be able to list and recognize the five techniques to handle conflict
Know different types and levels of conflict and how they affect performance
Relationship Between Intensity of Conflict and Performance Outcomes