Organizational Structure and
Human Resources
Ages of Man





Infancy
Soldier (young adult
Lover (teenager)
Childhood
Justice (accomplished adult)

elderly

Senility & death
Why Create Structure?
Organization Structure defines how job tasks
are formally divided, grouped, and
coordinated
Work Specialization


Division of labor
Describes the degree to which activities in
the organization are subdivided into separate
jobs
Departmentalization






Basis by which jobs are grouped together
Function
Product
Geography
Process
Customer
Chain of Command

Unbroken line of authority that extends from
the top of the organization to the lowest
echelon and clarifies who reports to whom

Span of control - determines the number of
levels and managers an organization has

Trend in recent years has been toward
larger spans of control

Wide spans are consistent with efforts by
companies to reduce costs, cut overhead,
speed up decision making, increase
flexibility, get closer to customers, and
empower employees
Contrasting Spans of Control
Common Organizational Designs



Simple structure
Bureaucracy
Matrix structure
Simple Structure




Low degree of departmentalization
Wide spans of control
Little formalization
Difficult to maintain in anything other than
small organizations
Bureaucracy



Highly routine operating tasks achieved
through specialization
Formalized rules and regulations
Tasks that are grouped into functional
departments
Bureaucracy



Centralized authority
Narrow spans of control
Decision making that follows the chain of
command
Formalization

Degree to which jobs
within the
organization are
standardized

Job analysis

Union Organizations
– Why do unions
prefer standardized
jobs?
Matrix Structure

Combines two forms of departmentalization—
functional and product



Management responsibilities must be carefully
agreed to.
Management job descriptions must clarify
responsibility
Methods must be in place to establish how
information will be gathered and reported.
New Options



The Team Structure
The Virtual Organization
The Boundaryless Organization
<Position Title Goes Here>
(Focus is on _________________)
Intent: (General descripton of position
The Work/Tasks:
Interacts With:
• Who person contacts
Key Measures:
• Measures
• Tasks
Skills/Attributes:
• Experience component of job
Decision Rights:
• Decisions person can make alone
Key Enablers:
• Support required
Manager, Business Administration
(Focus is on Internal Business Operations)
Intent: The Manager, Business Administration is responsible for ensuring the smooth operation of all internal, day-to-day aspects of Niagara Institute’s business
including: finance and budgeting; invoicing and payables; facilities and supplier management; technology; contract administration; and Human Resource
operations including Union relationship management. The Manager, Business Administration frees up the other functional leaders so they can focus on the work
of their functions.
Interacts With:
The Work/Tasks:
• All NI staff
• Manages all aspects of the NI’s financial activities;
financial analysis and tracking
• Suppliers
• Liaises with CBoC’s key operational departments
as required: Finance, HR, Technology, etc.
• CBoC counterparts
• Union officials
• Auditors
• Taxation and other compliance
officials
Skills/Attributes:
• Financial Management knowledge and skill
• Knowledge of technology
• Negotiation skills
• Solid understanding of NI’s business and its
critical success factors
• Process improvement
• Effective communicator; persuasive
• Good interpersonal skills
• Knowledge of HR operating practices
• Excellent Administrative skills
• Manages NI’s overall facilities requirements for
NI’s own needs and to support program delivery
• Contract Administration - Manages supplier
contracts; ensures customer contract are in place
to support work
Key Measures:
• % over or under budget (for NI’s operations)
• Invoicing, receivables and payables managed
within targeted time lines (cash flow
management)
• Employee satisfaction with: technology
capability; efficiency and ease of use of
internal business processes
• Supplier contracts are current and
competitive
• Ensures appropriate HR processes are in place
• Customer contracts held for all work started
• Manages the Union relationship and contract
negotiations
• Compliance issues addressed in a timely
fashion ( e.g. – up-to-date)
• Ensures technology infrastructure is operational
and appropriate to support business needs
• Quality of union relationship; contract is
current
• Acts as the officer in charge for all business
compliance issues
Decision Rights:
Key Enablers:
• What is in budget or out of budget, once
budget established and agreed by the
Management Team
• Budget required to effect changes in
technology platform to support business
needs
• Appropriate technology to support business
operations
• Access to information ( from the three
operating areas)
• Union contract issues
• Clear understanding of the boundaries within
which to negotiate
• Internal process changes (as relates to NI’s
internal business operations – not customer
processes)
• Supplier contract issues (e.g. – as relates to
facilities management)
• Access to CBoC resources and support from
them in key departments: finance, HR,
technology
• Client focused financial tracking system
Mechanistic versus Organic Structures
Strategy and Structure

How do different structures produce
different outcomes?
Innovation Strategy
 Cost-Minimization Strategy
 Imitation Strategy
 Marketing/ Sales Strategy
 Globalization Strategy

Organizational Structure and Employee
Behavior



Work Specialization
Span of Control
Centralization
Job Opening and you are interviewing



Use previous job description
Generate one question you would ask of the
interviewee
Develop the kind of answer you would like to
hear.
Employee Selection


Interview is the most widely used selection
tool
Results tend to have a disproportionate
amount of influence on the selection decision
Employee Selection


The unstructured interview has been proven
to be an ineffective selection device
The data gathered from such interviews are
typically biased and unrelated to future job
performance
Behavior Description Interviewing




Best Predictor of Future Behavior is Past
Behavior
It is possible to ask questions that elicit
descriptions of behavior.
When asking such questions, you have to
have follow ups planned but you cannot ask
them in a rote manner.
Inference is critical here. This is a very
difficult task to do from the details.
Behavior Description
• Contract Administration - Manages supplier
contracts; ensures customer contract are in
place to support work
• Can you tell me about a time when you had
responsibility for managing suppliers for an
organization?
• What decisions could you make about suppliers?
• How did your differentiate between suppliers
• Did you have a difficult supplier you had to deal with?
If yes, tell me about it.
Written Tests





Intelligence
Aptitude
Ability
Interests
Integrity
Performance Simulation Tests


Work samples
Assessment centers
Training
Interpersonal
Skills
Diversity
Training
Basic
Literacy
Skills
Problem
Solving
Skills
Technical
Skills
Ethics
Training
Training vs Learning




Formal training – What is
the transfer of training?
Informal training – Job
shadowing, requesting help,
partnering
On-the-job training – A
method for development
while doing the work
Off-the-job training –
Schools, MBAs, etc.
Career Development

Organization’s responsibility is to build
employee self-reliance and to help
employees maintain their marketability
through continual learning
High Potentials



What is a high potential?
How are they identified?
How are they developed?
McCall – High Flyers

Eleven Dimensions of Early Identification of Global Executives
 Seeks opportunity to learn
 Acts with Integrity
 Adapts to cultural differences
 Is committed to making a difference
 Seeks broad business knowledge
 Brings out the best in people
 Is insightful: sees things from new angles
 Has the courage to take risks
 Seeks and uses feedback
 Learns from mistakes
 Is open to criticism
McCall, Morgan W. High Flyers: developing the next generation of leaders
Harvard Business School Press, 1998.
Organization’s Responsibility




Clearly communicating the organization’s
goals and future strategies
Creating growth opportunities
Offering financial assistance
Providing the time for employees to learn
Employee’s Responsibility




Know yourself
Manage your reputation
Build and maintain network contacts
Keep current
Employee’s Responsibility



Balance your specialist and generalist
competencies
Document your achievements
Keep your options open
Avoiding Negative Influences in
Performance Appraisal


Objectives employees seek are clear
Criteria for measuring objectives are clear
and known in advance
Avoiding Negative Influences in
Performance Appraisal


Efforts made within employee capability are
measured as satisfactory
Performance as requested will lead to
rewards valued by employee
Criteria Evaluated



Individual Task Outcomes
Behaviors
Traits
Who Should Evaluate?





Immediate Superior
Peers
Self-evaluation
Immediate subordinates
360° feedback
Performance Appraisal Methods





Written Essays
Critical Incidents
Graphic Rating Scales
Behaviorally Anchored Rating Scales
Multi-person Comparisons
Improving Performance Appraisals


Emphasize behaviors
rather than traits
Document performance
behaviors in a diary
Improving Performance Appraisals




Use multiple evaluators
Evaluate selectively
Train evaluators
Provide employees due process
Performance Feedback

Manager’s reluctance




Uncomfortable discussing performance
weaknesses
Employees become defensive
Employees’ inflated assessment of own
performance
Training in conducting constructive feedback
Team Performance Appraisals


Tie the team’s results to the organization’s
goals
Begin with the team’s customers and
associated work processes
Team Performance Appraisals


Measure both team and individual
performance
Train the team to create its own
measures
Performance Appraisal
in Global Context


Caution required in generalizing across
cultures
Many cultures are not particularly
concerned with
performance
appraisal
Social Identity Theory
Diversity
“I am ….”

Please take a moment to complete this
statement

Do this by jotting down 10 different responses
to: “I am….”
Answers typically fall into 3 categories
(Gordon, 1968; Rosenberg, 1979)

Physical attributes, e.g., I am tall.

Social identities, or formal/informal social
roles, e.g., I am a son.

Personal identities, or personality attributes
of self, e.g., I am impatient.
Social Identity Theory

Key facets of Social Identity Theory (Tajfel
& Turner, 1986):

Recognizes the importance of categorization



People have an innate and strong tendency to
mentally organize things and people (including
themselves) into categories
To the extent that we associate ourselves with
groups (i.e. categorize ourselves), we have
social identities
Social identities (via our group memberships)
are important aspects of how we define
ourselves
Social Identity Theory

Think about a group you belong to and
with which you strongly identify



Write down what that group means to you
List some examples (e.g., things you’ve said or done
or felt) that demonstrate that you strongly identify
with that group
Think about a group you belong to but with
which you don’t identify


Write down what that group means (or doesn’t
mean) to you
List some examples that demonstrate your lack of
identification with that group
Social Identity Theory

Volunteers?


Groups with which you identify…
Groups with which you don’t identify…
Social Identity Theory

What kinds of factors influence level of
identification with the group?

How do you feel when someone says
something negative about a group with which
you strongly identify?

How do you feel when the group with which
you identify is associated with something bad?

How do you feel when that group is associated
with something good?
Social Identity Theory

More key facets of Social Identity Theory:

Social identities also dictate our perceptions of
members of our “in-groups” as…



Similar to us, at least on the dimension that defines
the group, and other positive attributes
And yet diverse (some in-group heterogeneity)
And social identities serve to distinguish us
and those in our in-group from members of
out-groups
Personal Example
Social Identity Theory

Social identity influences inter-group bias
and relations through the process of social
comparison (Festinger, 1954)

Social comparison is the evaluation of
ourselves (our performance, our abilities, our
appearance, etc.) in relation to others
– Upward social comparison
• i.e., relative to those who are “better” or “better off”
• Tends to lower our self-esteem
– Downward social comparison
• i.e., relative to those who are “worse” or “worse off”
• Tends to raise our self-esteem
Social Identity Theory

SI Theory extends the concept of social
comparison to groups:

To the extent that we identify with a group

When we compare our group to “better” groups



When we compare our group to “worse” groups



Our group-esteem suffers, and…
Consequently, our self-esteem suffers (by association)
Our group-esteem improves, and…
Consequently, our self-esteem improves (by
association)
Consequently, to the extent that we identify
with groups that are valued (e.g., powerful,
prestigious, high status, popular), we’ll feel
good about ourselves.
Social Identity Theory

How social identity affects inter-group bias
and relations:

People are motivated to achieve high selfesteem, so how do we maximize it?




Select dimensions on which to compare (those on
which your in-group excels)
Distort perceptions of out-groups (and in-groups)…
 a.k.a. stereotyping and prejudice
Promote (give advantages to) your in-group…
 a.k.a. nepotism
Hinder out-groups…

a.k.a. discrimination
Social Identity Theory

Conclusions:




Group identification is a natural consequence of our
tendency to use categorization
Personal self-esteem is effected by the esteem of ingroups
We seek to enhance in-group esteem (and consequently
self-esteem) by maximizing downward social
comparisons and minimizing upward social comparisons
Some ways to achieve this goal:




Compare on in-group’s strongest dimensions
Distort perceptions of out-groups and in-groups
Promote our in-group
Hinder out-groups
Implications of Social Identity theory for
the workplace?
Diversity

Diversity training: Recent survey found that 93%
of companies with diversity initiatives used training
as part of their programs (Robbins)

Rationale for Diversity Efforts




Combat negative consequences of SI Theory
Expanding, diverse marketplace and pool of talent
Enhance organizational performance
Results?
Diversity

Results of private sector research indicate that
the companies that have done the most to foster
diversity are also the most successful companies
overall.
Diversity is measured as % of diversity in
leadership ranks and at other levels,
membership on boards of directors, spending
with minority suppliers, etc.
Organizational Success—Stock performance
Diversity

Enhanced perspectives and a wide range of points
of view.

Enhanced ability to target various segments of the
market.

Diversity programs and initiatives as the norm in
many companies.
Complex Relationship


Between Diversity and Organizational
Success
Negative correlation between leadership
diversity and organizational success in the
short term.



Difficulties associated with building consensus.
Need to dismantle the existing organizational
culture and create a more inclusive one in its
place.
Organizational performance can be hindered
as organizational cultural changes.
Social Identity and Diversity: Conclusion
and Implications

Leadership Diversity
 There are psychological, fundamental,
practical, fiscal reasons for fostering
diversity in organizations.
 We need to define our organizational
priorities around issues of organizational
success and social responsibility.
Social Identity and the Global Economy:

Driving need to understand and assess culture
(McInerney, 1995)

Etic, or universals: We all eat, we all interact with
others, and we all have ways of dressing.

Emic, or culture specific: What, and how, do we
eat? How do we dress? How do we interact with
others?
“I am….a son”

The importance of “Cultural syndromes"
(Triandis): Shared attitudes, beliefs, norms, and
values found among those who speak a
particular language dialect, in a specific
geographic region, during a particular historic
period.

Cultural syndromes provide a focus, so that we
can get out of the fuzzy construct of "culture" and
into a construct that we can probe systematically.

Individualism vs. Collectivism (Ulaszek &
Triandis study)
Hofstede’s Framework for Assessing
Cultures






Power distance
Achievement vs. nurturing
Uncertainty avoidance
Long-term vs. short-term
orientation
Vertical and horizontal cultures
Individualism vs. collectivism
“I am ….impatient”

Personality traits are defined as "dimensions of individual
differences in tendencies to show consistent patterns of
thoughts, feelings, and actions" (McCrae & Costa, 1990).

Examples: nervous, enthusiastic, original, accommodating,
and careful

Allport and Odbert (1936) identified some 4,000 trait names
in the English language, and similar (although generally
smaller) lists of traits have been compiled for many other
languages, including Turkish and Chinese (Somer &
Goldberg, 1999; Yang & Lee, 1971).
FIVE FACTOR MODEL (FFM)

Traits organized into five factors of Neuroticism (N), Extraversion
(E), Openness to Experience (O), Agreeableness (A), and
Conscientiousness (C) (FFM; McCrae & John, 1992).

Individuals who are high in N are likely to be anxious, easily
depressed, and irritable, vs. those who are low in N are calm, eventempered, and emotionally stable.

Extraverts are lively, cheerful, and sociable; introverts are sober
and taciturn.

Open men and women are curious, original, and artistic; closed
people are conventional and down-to-earth.

Agreeableness is characterized by trust, compassion, and
modesty;

Conscientiousness is seen in organization, punctuality, and
purposefulness.
An Emic Measure

The 5-Factor Model: Instrument has been
translated into more than 40 languages or
dialects, and studies of its factor structure
have been conducted in more than 30
cultures, from Zimbabwe to Peru (McCrae &
Allik, 2002).
Limitations to measure

Existing additional personality factors specific
to individual cultures (Cheung and Leung; 1998)

Factors may not all be equally important in every
culture.

For example, individual differences in Openness to
Experience may be of little consequence in traditional
cultures where life's options are severely limited
(Piedmont, Bain, McCrae, & Costa, 2002).
Universal Finding on Age

Changes in the mean level of all five factors between
adolescence and about age 30 (McCrae & Costa, 1990): N, E,
and O decline, whereas A and C increase. After age 30, the
same trends are seen, but at a much slower pace: In terms of
personality traits, 30-year-olds resemble 70-year-olds more
than 20-year-olds.

Germany, Italy, Portugal, Croatia, South Korea, Estonia,
Russia, Japan, Spain, Britain, Turkey, and the Czech Republic
showed patterns of age differences very similar to those seen
in the United States.

It appears that age, especially from adolescence to midadulthood, tends to make individuals better adjusted, more
altruistic, and better organized, but also less enthusiastic and
less open to new experience (McCrae et al., 2000).
How used in workplace?

Black (2000) has shown that this 5 Factor
Model is useful in police selection, adding
incremental validity above and beyond
cognitive testing.

Police applicants in New Zealand are now
routinely screened with the instrument.
Groups


Two or more individuals, interacting and
interdependent, who come together to
achieve particular objectives
Formal or informal
Four Types of Groups




Command
Task
Interest
Friendship
Why Do People Join Groups?
Basic Group Concepts






Roles
Norms
Status
Cohesiveness
Size
Composition
Roles


Psychological Contract
Sets out mutual expectations
Norms

Acceptable standards of behavior
within a group
that are adopted
and shared by
the group’s
members
Examples of Cards Used
in Asch Study
X
A
B
C
Conformity and the Asch Studies



Demonstrated that subjects conformed in
about 35% of the trials
Members desire to be one of the group and
avoid being visibly different
Members with differing opinions feel
extensive pressure to align with others
Symptoms of Groupthink


Group members rationalize any resistance
to their assumptions
Members pressure any doubters to
support the alternative favored by the
majority
Symptoms of Groupthink


Doubters keep silent about misgivings and
minimize their importance
Group interprets members’ silence as a “yes”
vote for the majority
Variables Influencing Groupthink





Group’s cohesiveness
Leader’s behavior
Insulation from outsiders
Time pressures
Failure to follow methodical decision-making
procedures
Groupshift

Decision of the group reflects
the dominant
decision-making
norm that develops
during the group’s
discussion
Jerry Harvey’s Story



What’s likely to happen?
How was the decision made?
Who wanted to go to Abilene?
Abilene Paradox



Author: Harvey, Jerry B.
Title: The Abilene paradox and other
meditations on management
Published: Lexington, Mass. : Lexington
Books ; San Diego, Calif. : University
Associates, c1988.
Bring Ethical Decision
Making Challenge to next
Class!!!
Stages of Group Formation





Forming
Storming
Norming
Performing
Ending
Forming



Creation of group
Getting to know each other
Developing expectations
Storming



Establishing boundaries
Who will lead/ control
How will conflicts be settled
Norming




Agree as a group to rules and limits
Define what the task is
Determine who will complete what parts
Establish how influence/discipline will operate
Performing

All ancillary components cleared away – now
can focus on the task
Ending


Not in every model
Recognize the need to get closure when
things end
Use of Outside Products





Tools are useful, but the way of organizing
the world is the real value
Self-Assessment, Organization culture and
MBTI from previous classes
Today FIRO-B®
Other tools for decision making and change
Using this approach to understand what your
are dealing with is essential to developing
strategic organizations.
®
Overview of FIRO-B





Developed by Will Schutz.
Was originally created as a means to select
submarine crews.
Concerned about motivation to engage in social
behavior.
Decided that these motivations were derived from
needs.
Instrument owned and published by Consulting
Psychologist Press.
®
The FIRO-B Model

Three basic interpersonal needs

Need to be a part of the group –
Inclusion

Need to be in control of the situation and others –
Control

Need to be liked and feel close to others -
Affection
®
The FIRO-B Model

Not simply the need but what you do with it.
There are two types of need:

Those you show to others, that can be observed
by people watching you –
expressed

Those that you are aware of but typically do not
show - Need to be in control of the situation and
others – wanted
®
FIRO-B Scoring

Put the data into a matrix with the need across the
top and the expressed vs. wanted on the side.
Inclusion
Control
Affection
expressed
eI
eC
eA
wanted
wI
wC
wA
®
FIRO-B Scoring
• Low = I do this or respond this way
occasionally and selectively.
• Medium = I do this or respond this way
usually and with many people.
• High = I do this or respond this way very
frequently and with almost everyone.
Groups Evolve Through Particular Stages
Along the Dimensions of:
Inclusion — Control — Affection
Inclusion — early formation stage
• Where do I fit in?
• Do I want to be in or out?
• How committed will I become?
• How committed is our leader?
Control — mid-development
• Competition for leadership.
• What is the method for decision making?
• How will power be distributed?
Affection
How close shall I get if the group exists over long period of time?
Inclusion


Forming new relations, associating
with people
Extent of contact and prominence a
person seeks
Expressed:
Wanted:
To what extent do I include other people
in my activities (e.g., meetings,
discussions) and get them to include me
in theirs?
Low – Quiet - Very reserved -Difficult to
know
How much do I want others to include me
in their activities and invite me to
participate?
High – Engaging – Outgoing Connected
High - Need for acceptance - Hate to be
left out
Low – Private - Little concern for
popularity -
Typical Behavior for:
eI
HIGH
LOW
• Initiates contact
• Appears reserved
• Shows interest in others
• Seems restrained
• Likes to socialize
• Fact-oriented
• Group-oriented
• Doesn’t like to chit-chat
• Communicative
• Outgoing
Typical Behavior for:
wI
HIGH
LOW
• Fears being ignored or left out
• Seems self-sufficient
• Likes to be included
• Appears self-reliant
• Is easily slighted
• Likes to be alone
• Wants attention
• Doesn’t care to socialize
• Concern for recognition
• Desires status
Control


Decision making, influence, and persuasion
between people
Extent of power or dominance a person
seeks
Expressed:
Wanted:
How much control and influence do I exert
over things?
To what extent do I take charge and tell
others what to do?
How much control and influence do I want
others to have over me? How comfortable
am I with others telling me what to do?
Low - Flexible - Little interest in power –
Easygoing
High - Intense –Exacting - Dominant
Low – Independent - Rebellious - Prefers
autonomy
High - Compliant – Dependent Uncomfortable making decisions
Typical Behavior for:
eC
HIGH
LOW
• Likes to direct people
• Not power-oriented
• Makes decisions readily
• Non-directive
• Organizes self and others
• Prefers not to supervise others
• Seems confident
• Wants others to make their
own decisions
• Wants challenges
Typical Behavior for:
wC
HIGH
LOW
• Wants direction or guidance
• Appears independent
• Concerned about rules
• Works with, not for others
• Supports others
• Follows through on decisions
• Cooperative
• Rejects structure
• Methodical and orderly
• Wants structure
Affection
Emotional ties and warm connections between
people
 Extent of closeness a person seeks
Expressed:
Wanted:
To what extent do I act open, trusting,
and caring toward others?
How much do I want others to act open,
trusting,
and caring toward me?
Low – Businesslike - Aloof
Rational
-
High - Caring – Warm - Reassuring
Low - Distant - Closed – Cautious
High - Considerate – Approachable Sensitive
Typical Behavior for:
eA
HIGH
LOW
• Open and trusting
• Appears unfeeling
• Warm and friendly
• Seems calm and aloof
• Expresses feelings
• Appears objective and formal
• Gives acknowledgment
• Appears unemotional
• Shows support
• Shows encouragement
Typical Behavior for:
wA
HIGH
LOW
• Wants to be liked
• Appears guarded
• Wants others’ trust
• Not easy to know
• Concern for approval
• Can be direct and blunt
• Responds well to praise
• Seems invulnerable
• Easily hurt
• Appears cool and rational
• Takes criticism hard
The Hawthorne Studies

Concluded that a worker’s behavior and sentiments were
closely related

Group influences were significant in affecting individual
behavior.

Group standards were highly effective in establishing
individual worker output.

Money was less a factor in determining worker output
than were group standards, sentiments, and security.
Cohesiveness
The degree to which members
of the group are attracted to
each other and motivated to
stay in the group
Relationship of Cohesiveness
to Productivity
Cohesiveness
High
High
Low
Strong increase
in
productivity
Decrease
in
productivity
Low
Moderate increase
in
productivity
No significant
effect on
productivity
How Can Managers Encourage Cohesiveness?







Make the group smaller
Encourage agreement on
group goals
Increase the time spent together
Increase the status and perceived difficulty of
group membership
Stimulate competition with other groups
Give rewards to the group rather than
members
Physically isolate the group
How Size Affects a Group



Smaller groups are faster at completing
tasks
Large groups are consistently better at
problem solving
Increases in group size are inversely
related to individual performance