LESSON 9.

COMMUNICATION

COMMUNICATION- process by which information is exchanged between individuals through a common

system of symbols, signs, or behavior

COMMUNICATION PROCESS

 Sender originates the message with a thought; encodes the message, translating the idea into
words.
 Receiver is the person who receives the message; decodes the message by assigning meaning to
the words.
 Medium of this encoded message may be spoken words, written words, or signs. E.g. Phone, E-
mail, In person, Instant Message
 Noise is anything that interferes with or distorts the message being transformed

FORMAL COMMUNICATION

 MESSAGE DIRECTED THROUGH THE ORGANIZATIONAL STRUCTURE

 Sharing official information with others who need to know this information
 ORGANIZATIONAL STRUCTURE contains formally prescribed pattern of interrelationships existing
between the various units of an organization
 ORGANIZATION CHART is the diagram that describes the organizational structure

1. DOWNWARD COMMUNICATION -instructions, directions and orders—generally, messages that

tell subordinates what they should be doing.
2. UPWARD COMMUNICATION – information that flows from lower levels to higher levels within
an organization, such as messages from subordinates to their supervisors
3. HORIZONTAL COMMUNICATION - messages that flow laterally, at the same organizational level;
characterized by efforts at coordination, attempts to work together
4. In some cases, it can also be DIAGONALLY, where employees communicate across departments,
sections.

INFORMAL COMMUNICATION

 Employees are not bound by their regular positions

 Anyone can tell something informally to anyone else, it results in a very rapid flow of
information
 Commonly called the grapevine
 Rumors is the downside of formal communication

TYPES OF COMMUNICATION

1. VERBAL COMMUNICATION -involves listening to a person to understand the meaning of a

message. May occur over the phone or in person
  STORYTELLING is a narrative account of an event or events
 CRUCIAL CONVERSATIONS are discussions in which the stakes are high, opinions vary,
and emotions run strong

2. WRITTEN COMMUNICATION- Are printed messages. Include memos, proposals, e-mails, letters,
training manuals, and operating policies
3. NONVERBAL COMMUNICATION
 Body language
 Eye contact
 Facial expressions
 Posture
 Touch
 Space

COMMUNICATION CHANNELS

1. EXTERNAL COMMUNICATIONS
 Press Releases
 Advertisements
 Web Pages
 Customer Communications (direct mail, emails, letters, catalogs, text messages,
telemarketing messages

BARRIERS TO COMMUNICATION

 FILTERING- the distortion or withholding of information to manage a person’s reactions

 SELECTIVE PERCEPTION- refers to filtering what we see and hear to suit our own needs. Often
done unconsciously
  INFORMATION OVERLOAD- occurs when the information processing demands on an individual’s
time to perform interactions and internal calculations exceed the supply or capacity of time
available for such processing
 EMOTIONAL DISCONNECTS
- A receiver who is emotionally upset tends to ignore or distort what the sender is saying
- A sender who is emotionally upset may be unable to present ideas or feelings
effectively.
 LACK OF SOURCE FAMILIARITY OR CREDIBILITY
- Lack of familiarity with the sender can lead to misinterpreting humor, especially in less
rich information channels such as e-mail.
- If the sender lacks credibility or is untrustworthy, the message will not get through.
Receivers may be suspicious of the sender’s motivations
 WORKPLACE GOSSIP- the grapevine is a lifeline for many employees seeking information about
their company. Informal gossip network within a given organization
 SEMANTICS- words can mean different things to different people, or they might not mean
anything to another person. Companies have acronyms or buzzwords called business jargons
which are familiar to them but not to outsiders
 GENDER DIFFERENCES- Men and women have different styles of communication which can work
against them
 DIFFERENCES IN MEANING BETWEEN SENDER AND RECEIVER- different words mean different
things to different people. Age, education, and cultural background are all factors that influence
how a person interprets words
 BIASED LANGUAGE- Words and actions that stereotype others on the basis of personal or group
affiliation are examples of bias
 POOR LISTENING- The receiver did not listen well to get the message from the sender

METHODS IN IMPROVING COMMUNICATION AT WORK

ENCOURAGE OPEN FEEDBACK-

 360-degree feedback—Formal systems in which people at all levels give feedback to others at
different levels and receive feedback from them, as well as outsiders—including customers and
suppliers
 Suggestion systems—Programs that invite employees to submit ideas about how something
may be improved.
 Corporate hotlines—Telephone lines staffed by corporate officials ready to answer questions
and listen to comments

USE SIMPLE LANGUAGE- Wise use of jargons. Know audience first before using jargons

RELY ON GATEKEEPERS- or people whose jobs require them to control the flow of information to
potentially overloaded individuals, groups, or organizations such scheduling appointments
PRACTICE QUEUING - involves lining up incoming information so that it can be attended to in an orderly
fashion

WALK THE TALK- match actions with words

BE A GOOD LISTENER- Involves doing a good job of comprehending others

LESSON 10 MANAGING GROUPS AND TEAMS

GROUP

 A collection of individuals who interact with each other such that one person’s actions have an
impact on the others.
 A set of two or more people who interact with each other to achieve certain goals or to meet
certain needs.
Attributes
1. Members of a group interact with each other: what one person does affects everyone else
and vice versa.
2. Members of a group believe there is the potential for mutual goal accomplishment—that is,
group members perceive that by belonging to the group, they will be able to accomplish certain
goals or meet certain needs.

TYPES OF WORK GROUPS

 INFORMAL
- Two or more individuals who are associated with one another in ways not prescribed by
the formal organization.
- A group that emerges naturally when individuals perceive that membership in a group
will help them achieve their goals or meet their needs.
 FORMAL
- Is made up of managers, subordinates, or both with close associations among group
members that influence the behavior of individuals in the group.
- A group established by management to help the organization achieve its goals.

TYPES OF FORMAL WORK GROUPS

COMMAND GROUP

- A formal work group consisting of subordinates who report to the same supervisor.
- Frequently represented on organizational charts as departments (marketing, sales, accounting,
and so on).

TASK FORCE

- A formal work group consisting of people who come together to accomplish a specific goal.
- Once the goal has been accomplished, the task force is usually disbanded.
TEAM

- A formal work group consisting of people who work intensely together to achieve a common
group goal

SELF-MANAGED WORK TEAM

- A formal work group consisting of people who are jointly responsible for ensuring that the team
accomplishes its goals and who lead themselves

TYPES OF INFORMAL WORK GROUPS

FRIENDSHIP GROUP

- An informal work group consisting of people who enjoy each other’s company and socialize with
each other on and off the job.

INTEREST GROUP

- An informal work group consisting of people who come together because they have a common
goal or objective related to their organizational membership.

TUCKMAN’S STAGES OF GROUP DEVELOPMENT

1. Forming- Stage when the group comes together for the first time.
2. Storming- Stage when participants focus less on keeping their guard up as they shed social
facades, becoming more authentic and more argumentative.
3. Norming- Stage when participants find it easy to establish their own ground rules (or norms)
and define their operating procedures and goals.
4. Performing- Stage when participants are not only getting the work done, but they also pay
greater attention to how they are doing it.
5. Adjourning- The group disbands after having accomplished its goals.

CHARACTERISTICS OF WORK GROUPS

 Group Size- DIVISION OF LABOR. Dividing up work and assigning particular tasks to specific
workers.
 Group Composition- HOMOGENEOUS GROUP. A group in which members have many
characteristics in common. HETEROGENEOUS GROUP. A group in which members have few
characteristics in common.
 Group Efficacy- GROUP EFFICACY. The shared belief group members have about the ability of
the group to achieve its goals and objectives.

SOCIAL FACILITATION- the effects that the presence of others has on performance, enhancing the
performance of easy tasks and impairing the performance of difficult tasks.
TYPES

 Audience effects are the effects of passive spectators on individual performance. In this case,
other group members are not engaged in the task itself but are present as an audience.
 Co-action effects are the effects of the presence of other group members on the performance of
an individual when the other group members are performing the same task as the individual.

SOCIAL LOAFING

• The tendency of individuals to put in less effort when working in a group context.

• When individuals work together on additive tasks, the greater the size of the group, the less the
effort each individual exerts

• Social loafing may occur when people feel they can get away with "taking it easy"—namely,
under conditions in which each individual's contributions cannot be determined.

• The tendency of individuals to exert less effort when they work in a group than when they work
alone

• Social loafing can be overcome if one's contributions to an additive task are identified: Potential
loafers are not likely to loaf if they fear getting caught.

• Another way to overcome social loafing is to make work tasks more important and interesting.

• It also has been suggested that managers should reward individuals for contributing to their
group's performance—that is, encourage their interest in their group's performance.

GROUP NORMS- Informal rules of conduct for behaviors considered important by most group members.

Why conform?
COMPLIANCE. Assenting to a norm in order to attain rewards or avoid punishment.

IDENTIFICATION. Associating oneself with supporters of a norm and conforming to the norm because
those individuals do.

INTERNALIZATION. Believing that the behavior dictated by a norm is truly the right and proper way to
behave.

IDIOSYNCRASY CREDIT. The freedom to violate group norms without being punished that is accorded to
group members who have contributed a lot to the group in the past.

KEY ORGANIZATIONAL GROUPS

 TOP MANAGEMENT TEAM- The team of managers who report to the chief executive officer
(CEO) and determine what an organization is trying to accomplish and develop plans for goal
attainment.
  SELF-MANAGED WORK TEAMS- Members of a self-managed work team have the autonomy to
lead and manage themselves and determine how they will jointly perform the tasks necessary
for the team to achieve its goals.
 RESEARCH AND DEVELOPMENT (R&D) TEAM- A team formed to develop new products, may be
cross-functional, and is often used in high-tech industries.
 VIRTUAL TEAM- A team in which a significant amount of communication and interaction occurs
electronically rather than face to face.

TEAM- a cohesive coalition of people working together to achieve mutual goals

BARRIERS TO EFFECTIVE TEAMS

 Dominating Team Members- Some team members may have a dominating personality that
encroaches on the participation or air time of others.
 Poor Performance of Team Members- Research shows that teams deal with poor performers in
different ways, depending on members’ perceptions of the reasons for poor performance.
 Poorly Managed Team Conflict- Disagreements among team members are normal and should
be expected. Healthy teams raise issues and discuss differing points of view, because that will
ultimately help the team reach stronger, more well-reasoned decisions

LESSON 11 LEADERSHIP

LEADERSHIP

- The act of influencing others toward a goal

- The exercise of influence by one member of a group or organization over other members to help
the group or organization achieve its goals
- LEADER- An individual able to influence group or organizational members to help the group or
organization achieve its goals

TYPES OF LEADERS

Formal leaders

- Those who hold a position of authority and may utilize the power that comes from their
position, as well as their personal power to influence others.
- A member of an organization who is given authority by the organization to influence other
organizational members to achieve organizational goals.

Informal leaders

- Those without a formal position of authority within the organization but demonstrate leadership
by influencing those around them through personal forms of power.
- An organizational member with no formal authority to influence others who nevertheless is able
to exert considerable influence because of special skills or talents.
TRAITS APPROACHES TO LEADERSHIP

 Traits- identify enduring personal traits that distinguish leaders from followers, and effective
from ineffective leaders.
 Intelligence—helps a leader solve complex problems.
 Task-relevant knowledge—ensures that a leader knows what has to be done, how it should be
done, and what resources are required for a group and organization to achieve its goals.
 Dominance—an individual’s need to exert influence and control over others, helps a leader
channel followers’ efforts and abilities toward achieving group and organizational goals.
 Self-confidence—helps a leader influence followers and motivates followers to persevere in the
face of obstacles or difficulties.
 Energy/activity levels—a high energy level helps a leader deal with the many demands or
activities encountered day to day.
 Tolerance for stress—promotes a leader’s ability to deal with the uncertainty or ambiguity
inherent in any complex decision-making situation.
 Integrity and honesty—an indicator that a leader will behave ethically at all times and is worthy
of followers’ trust and confidence.
 Emotional maturity—a sign that a leader is not overly self-centered, can control his or her
feelings, and can accept criticism.

BEHAVIORAL APPROACHES TO LEADERSHIP

 CONSIDERATION. Behavior indicating that a leader trusts, respects, and values good
relationships with his or her followers.
 INITIATING STRUCTURE. Behaviors that a leader engages in to make sure that work gets done
and subordinates perform their jobs acceptably.
 LEADER REWARD BEHAVIOR A leader’s positive reinforcement of subordinates’ desirable
behavior.
 LEADER PUNISHING BEHAVIOR A leader’s negative response to subordinates’ undesired
behavior
 TASK ORIENTED LEADER BEHAVIOR- Structuring the roles of subordinates, providing them with
instructions, and behaving in ways that will increase the performance of the group (also called
initiating structure).
 PEOPLE ORIENTED LEADER BEHAVIOR- Showing concern for employee feelings and treating
employees with respect (also called consideration).

LEADER DECISION MAKING

o AUTHORITARIAN. What occurs when leaders make the decision alone without necessarily
involving employees in the decision-making process.
o DEMOCRATIC. What occurs when leaders and employees participate in the making of the
decision.
 o LAISSEZ FAIRE. What occurs when leaders leave employees alone to make the decision. The
leader provides minimum guidance and involvement in the decision.

TRAITS AND BEHAVIOR APPROACHES PREMISE

 TRAIT- Effective leaders possess certain qualities or traits that help a group or an organization
achieve its goals
 BEHAVIOR- Effective leaders perform certain behaviors, which may include consideration,
initiating structure, reward behavior, and punishing behavior

TRAITS AND BEHAVIOR APPROACHES DRAWBACKS

 TRAIT- Some effective leaders do not possess all of these traits, and some leaders who possess
these traits are not effective. The approach ignores the situation in which leadership takes place.
 BEHAVIOR- The relationship between these behaviors and subordinate performance and
satisfaction is not necessarily clear-cut. The behavior approach ignores the situation in which
leadership takes place.

Mcgregor’s leadership assumptions about human nature

 Theory X- A theory of human nature which assumes that employees are lazy, do not enjoy
working, and will avoid expending energy on work whenever possible.
 Theory Y- A theory of human nature which assumes that employees are not lazy, can enjoy
work, and will put effort into furthering organizational goals

Fred Fiedler’s contingency theory of leadership

 The theory that leader effectiveness is determined by both the personal characteristics of
leaders and by the situations in which leaders find themselves.
 Leaders who are task-oriented want their subordinates to perform at a high level and
accomplish all their assigned tasks to the best of their abilities.
 Leaders who are relationship-oriented want to be liked by and get along well with their
subordinates.
 According to Fiedler, a leader’s style, whether relationship-oriented or task-oriented, is an
enduring personal characteristic. Leader style cannot easily be changed: A relationship-oriented
leader cannot be trained to be task-oriented and vice versa. A leader’s style also cannot easily
change when the particular situation changes.
 Fiedler proposed that situations vary in their favorability for leading, that is, the extent to which
the situation allows the leader to easily guide and channel subordinate behavior in the direction
of high performance and goal attainment.
 LEADER–MEMBER RELATIONS The relationships between a leader and his or her followers.
 TASK STRUCTURE The extent to which the work to be performed by a group is clearly defined.
 POSITION POWER The amount of formal authority a leader has.
  According to the theory, a leader’s style is measured by a scale called Least Preferred
Coworker scale (LPC) The theory predicts that in “favorable” and “unfavorable” situations, a low
LPC leader—one who has feelings of dislike for coworkers who are difficult to work with—would
be successful. When situational favorableness is medium, a high LPC leader—one who is able to
personally like coworkers who are
difficult to work with—is more
likely to succeed.
 How to determine whether a
situation is “favorable,”
“medium,” or “unfavorable”?
 There are three conditions
creating situational
favorableness: leader-
subordinate relations, position
power, and task structure.
 If the leader has a good
relationship with most people and
has high position power, and the
task at hand is structured, the
situation is very favorable.
 When the leader has low-quality
relations with employees and has
low position power, and the task
at hand it relatively unstructured, the situation is very unfavorable.

Blanchard and Hersey’s situational theory of leadership using contingency approach

 The model summarizes the level of directive and supportive behaviors that leaders may exhibit.
The model argues that to be effective, leaders must use the right style of behaviors at the right
time in each employee’s development. It is recognized that followers are key to a leader’s
success.
CONTEMPORARY THEORIES OF LEADERSHIP:

HOUSE’S PATH-GOAL THEORY OF LEADERSHIP- A theory that describes how leaders can motivate their
followers to achieve group and organizational goals and the kinds of behaviors leaders can engage in to
motivate followers

FOUR LEADERSHIP STYLES OF PATH GOAL THEORY

1. DIRECTIVE LEADERS- Leaders who provide specific directions to their employees. They lead
employees by clarifying role expectations, setting schedules, and making sure that employees
know what to do on a given work day
2. SUPPORTIVE LEADERS- Leaders who provide emotional support to employees. They treat
employees well, care about them on a personal level, and they are encouraging.
3. PARTICIPATIVE LEADERS- Those who make sure that employees are involved in the making of
important decisions.
4. ACHIEVEMENT-ORIENTED LEADERS-Those who set goals for employees and encourage them to
reach their goals.

VROOM AND YETTON MODEL- A model that describes the different ways in which leaders can make
decisions and guides leaders in determining the extent to which subordinates should participate in
decision making.

LEADERSHIP STYLES

 Autocratic: The leader makes the decision without input from subordinates.
 Consultative: Subordinates have some input, but the leader makes the decision.
 Group: The group makes the decision; the leader is just another group member.
 Delegated: The leader makes subordinates solely responsible for making the decision.

LEADER-MEMBER EXCHANGE THEORY- A theory that describes the different kinds of relationships that
may develop between a leader and a follower and what the leader and the follower give to and receive
back from the relationship

- In high-quality LMX relationships, the leader forms a trust-based relationship with the
member. The leader and member like each other, help each other when needed, and respect
each other.
- In low-quality LMX relationships, the leader and the member have lower levels of trust, liking,
and respect toward each other. These relationships do not have to involve actively disliking
each other, but the leader and member do not go beyond their formal job descriptions in their
exchanges.

BASS’ TRANSFORMATIONAL LEADERSHIP

  Those who lead employees by aligning employee goals with the leader’s goals. These leaders
use their charisma, inspirational motivation, intellectual stimulation, and individualized
consideration to influence their followers.
 Charisma refers to behaviors leaders demonstrate that create confidence in, commitment to,
and admiration for the leader.
 Inspirational Motivation- When leaders come up with a vision that is inspiring to others
 Intellectual Stimulation- which means that they challenge organizational norms and status quo,
and they encourage employees to think creatively and work harder.
 Individualized Consideration- which means that they show personal care and concern for the
well-being of their followers.
 TRUST is a key factor.
 The belief that the other party will show integrity, fairness, and predictability in one’s actions
toward the other.

TRANSACTIONAL LEADERSHIP

 Those who ensure that employees demonstrate the right behaviors and provide resources in
exchange. These leaders provide contingent rewards and manage by exception.
 Contingent rewards mean rewarding employees for their accomplishments.
 Active management by exception involves leaving employees to do their jobs without
interference, but at the same time proactively predicting potential problems and preventing
them from occurring.
 Passive management by exception is similar in that it involves leaving employees alone, but in
this method the manager waits until something goes wrong before coming to the rescue.

SERVANT LEADERSHIP

 A leadership approach that defines the leader’s role as serving the needs of others
 Even though servant leadership has some overlap with other leadership approaches such as
transformational leadership, its explicit focus on ethics, community development, and self-
sacrifice are distinct characteristics of this leadership style.

AUTHENTIC LEADERSHIP

 A leadership approach advising leaders to stay true to their own values

 Its key advice is “be yourself.”
 A key characteristic of authentic leaders is that they are self-aware
 They are introspective, understand where they are coming from, and have a thorough
understanding of their own values and priorities.
 They are not afraid to act the way they are. In other words, they have high levels of personal
integrity.

LEADERSHIP SUBSTITUTES AND NEUTRALIZERS:

LEADERSHIP SUBSTITUTE

- Something that acts in place of a formal leader and makes leadership unnecessary.
- Characteristics of the subordinate, the work, the group, and the organization all have the
potential to act as substitutes for leadership.

LEADERSHIP NEUTRALIZER

- Something that prevents a leader from having any influence and negates a leader’s efforts
- The leader has little or no effect on performance, and there is nothing to take the leader’s place
(there are no substitutes).
- Not having their leader around on a day-to-day basis caused managers to tolerate and accept
mediocre performance; moreover, there was no one they could turn to for help and advice

LESSON 12: POWER AND POLITICS

 POWER

- The ability of one person or group to cause another person or group to do something they
otherwise might not have done.

- The ability to influence the behavior of others to get what you want

FORMAL INDIVIDUAL POWER - Power that originates from a person’s position in an organization.

INFORMAL INDIVIDUAL POWER - Power that stems from personal characteristics such as personality,
skills, and capabilities.

 SOURCES OF FORMAL INDIVIDUAL POWER

 LEGITIMATE POWER

- The power to control and use organizational resources to accomplish organizational goals

 REWARD POWER

- The power to give pay raises, promotion, praise, interesting projects, and other rewards to
subordinates.

 COERCIVE POWER

- The power to give or withhold punishment.

- Punishments range from suspension to demotion, termination, unpleasant job assignments, or

even the withholding of praise and goodwill.

 REFERENT POWER
- The power that stems from access to and control over information.

- The more managers are able to access and control important information the greater is their
information power.

 SOURCES OF INFORMAL INDIVIDUAL POWER

 EXPERT POWER

- Informal power that stems from superior ability or expertise.

- People who possess expert power are promoted up the hierarchy of authority so that their
informal power eventually gives them formal power.

 REFERENT POWER

- Informal power that stems from being liked, admired, and respected.

- People high on the personality traits of agreeableness, extraversion, or conscientiousness are

often liked or admired

 CHARISMATIC POWER

- An intense form of referent power that stems from an individual’s personality or physical or
other abilities, which induce others to believe in and follow that person.

- When charismatic power exists, legitimate power, reward power, and coercive power lose their
significance because followers give the charismatic leader the right to hold the reins of power
and make the decisions that define the vision and goals of an organization and how its members
should behave.

 THE RELATIONSHIP BETWEEN DEPENDENCY AND POWER DEPENDENCY

1. DEPENDENCY is directly related to power. The more that a person or unit is dependent on you,
the more power you have.

2. SCARCITY refers to the uniqueness of a resource. The more difficult something is to obtain, the
more valuable it tends to be.

3. IMPORTANCE refers to the value of the resource.

 COMMONLY USED INFLUENCE TACTICS

 RATIONAL PERSUASION

- includes using facts, data, and logical arguments to try to convince others that your point of
view is the best alternative.
- This is the most commonly applied influence tactic.

 INSPIRATIONAL APPEALS

- seek to tap into our values, emotions, and beliefs to gain support for a request or course of
action.

- Effective inspirational appeals are authentic, personal, big-thinking, and enthusiastic.

 CONSULTATION

- refers to the influence agent’s asking others for help in directly influencing or planning to
influence another person or group.

- is most effective in organizations and cultures that value democratic decision making.

 INGRATIATION

- refers to different forms of making others feel good about themselves.

- includes any form of flattery done either before or during the influence attempt.

 PERSONAL APPEAL

- refers to helping another person because you like them and they asked for your help.

 EXCHANGE

- refers to give-and-take in which someone does something for you, and you do something for
them in return.

 COALITION TACTICS

- refer to a group of individuals working together toward a common goal to influence others.

 PRESSURE

- refers to exerting undue influence on someone to do what you want or else something
undesirable will occur.

 LEGITIMATING TACTICS

- relies upon compliance with rules, laws, and regulations. It is not intended to motivate people
but to align them behind a direction.

 RESPONSES TO INFLUENCE TACTICS

 RESISTANCE occurs when the influence target does not wish to comply with the request and
either passively or actively repels the influence attempt.
 COMPLIANCE occurs when the target does not necessarily want to obey, but they do.

 COMMITMENT occurs when the target not only agrees to the request but also actively supports
it as well.

 ORGANIZATIONAL POLITICS

 ACTIVITIES in which managers engage to increase their power and to pursue goals that favor
their individual and group interests.

 POLITICAL SKILL refers to peoples’ interpersonal style, including their ability to relate well to
others, self-monitor, alter their reactions depending upon the situation they are in, and inspire
confidence and trust.

 MEMBERS of the organization are engaged in turf wars when they are more concerned about
their own area of operations than doing what’s best for the entire organization in the long run

 MANAGING POLITICS to obtain its positive effects requires a balance of power in an

organization and a strong CEO who has the ability to keep powerful people and groups in check.

 ANTECEDENTS OF POLITICAL BEHAVIOR

 POLITICAL SKILLS - Peoples’ interpersonal style, including their ability to relate well to others,
self-monitor, alter their reactions depending upon the situation they are in, and inspire
confidence and trust

 SOCIAL NETWORK

- are visual maps of relationships between individuals.

- They are vital parts of organizational life as well as important when you are first looking for a
job.

- Much of the work that gets done in organizations is done through informal networks as well.
Networks serve three important functions.

1. They deliver private information.

2. They allow individuals to gain access to diverse skills sets.

3. They can help create power.

LESSON 13: ORGANIZATIONAL CULTURE

 ORGANIZATIONAL CULTURE

- A system of shared assumptions, values, and beliefs showing people what is appropriate and
inappropriate behavior.

- The set of shared values, beliefs, and norms that influences the way employees think, feel, and
behave toward each other and toward people outside the organization.

 LEVELS OF ORGANIZATIONAL CULTURE

 ASSUMPTIONS- Taken for granted beliefs about human nature and reality.

 VALUES - Shared principles, standards, and goals.

 ARTIFACTS - The visible and tangible elements of culture.

 DIMENSIONS OF ORGANIZATIONAL CULTURE

 INNOVATIVE CULTURES - Cultures that are flexible, adaptable, and experiment with new ideas.

 AGGRESSIVE CULTURES - Cultures that value competitiveness and outperforming competitors.

 OUTCOME-ORIENTED CULTURES - Cultures that emphasize achievement, results, and action as

important values.

 STABLE CULTURES - Cultures that are predictable, rule oriented, and bureaucratic.

 PEOPLE-ORIENTED CULTURES - Cultures that value fairness, supportiveness, and respecting

individual rights.

 TEAM-ORIENTED CULTURES - Cultures that are collaborative and emphasize cooperation among
employees.

 DETAIL-ORIENTED CULTURES - Cultures that emphasize precision and paying attention to details

 SERVICE CULTURE - A culture that emphasizes high quality service.

  SAFETY CULTURE - A culture that emphasizes safety as a strong workplace norm.

 STRENGTH OF CULTURE - A strong culture is one that is shared by organizational members.

SUBCULTURE

- A set of values unique to a limited cross-section of the organization.

 FACTORS SHAPING ORGANIZATIONAL CULTURE

 CHARACTERISTICS OF PEOPLE WITHIN THE ORGANIZATION

- The ultimate source of organizational culture is the people who make up the organization. If you
want to know why cultures differ, look at their members.

 ORGANIZATIONAL ETHICS

- The moral values, beliefs, and rules that establish the appropriate way for an organization and
its members to deal with each other and with people outside the organization.

 EMPLOYMENT RELATIONSHIP

- The nature of the employment relationship a company establishes with its employees via its
human resource policies and practices.

 ORGANIZATIONAL STRUCTURE

- can promote cultural values that increase integration and coordination. When task and role
relationships are stable, shared norms and rules emerge that reduce communications problems
and speed the flow of information.

 VISUAL ELEMENTS OF CULTURE

 MISSION STATEMENT - A statement of purpose, describing who the company is and what it
does.
  RITUALS - Repetitive activities within an organization that have symbolic meaning.

 RULES AND POLICIES - Companies create rules to determine acceptable and unacceptable
behavior, and thus the rules that exist in a company will signal the type of values it has.

 PHYSICAL LAYOUT - A company’s building, including the layout of employee offices and other
work spaces, communicates important messages about a company’s culture.

 HOW DO CULTURES CHANGE

1. Create A Sense Of Urgency

- Explain to employees why changing the fundamental way in which business is done is so
important.

2. Changing Leaders and Other Key Players

- A leader’s vision is an important factor that influences how things are done in an organization.
Culture change often follows changes at the highest levels of the organization.

3. Role Modeling

- is the process by which employees modify their own beliefs and behaviors to reflect those of the
leader.

4. Training

- The success of the culture change effort may be increased by developing new rituals, symbols,
and stories.

5. Change the Reward System

- The criteria with which employees are rewarded and punished have a powerful role in
determining the cultural values in existence.

6. Creating New Symbols and Stories

- Well-crafted training programs may be instrumental in bringing about culture change by

teaching employees the new norms and behavioral styles.

LESSON 14: CONFLICT AND NEGOTIATIONS

CONFLICT - A process that involves people disagreeing.

ORGANIZATIONAL CONFLICT

• The struggle that arises when the goal-directed behavior of one person or group blocks the
goal-directed behavior of another person or group

TYPES OF CONFLICT

Intrapersonal Conflict

 Conflict that arises within a person

 can arise because of differences in roles.

Interpersonal Conflict

 is among individuals such as coworkers, a manager and an employee, or CEOs and their staff.

 A type of conflict between two people.

Intergroup Conflict

• Conflict that takes place among different groups, such as different departments or divisions in a
company, or between union and management, or between companies, such as companies who
supply the same customer.

CAUSES OF CONFLICT

A. ORGANIZATIONAL STRUCTURE

 Conflict tends to take different forms, depending upon the organizational structure.

B. LIMITED RESOURCES

 Resources such as money, time, and equipment are often scarce

C. TASK INTERDEPENDENCE

 When accomplishment of your goal requires reliance on others to perform their tasks.

D. PERSONALITY DIFFERENCES
  By understanding some fundamental differences among the way people think and act,
we can better understand how others see the world.

E. INCOMPATIBLE GOALS

 Sometimes conflict arises when two parties think that their goals are mutually
exclusive. Within an organization, incompatible goals often arise because of the
different ways department managers are compensated.

F. COMMUNICATION PROBLEMS

 Sometimes conflict arises simply out of a small, unintentional communication

problem, such as lost e-mails or dealing with people who don’t return phone calls.

OUTCOMES OF CONFLICT

A. POSITIVE OUTCOMES

 Consideration of a broader range of ideas, resulting in a better, stronger idea

 Surfacing of assumptions that may be inaccurate

 Increased participation and creativity

 Clarification of individual views that build learning

B. NEGATIVE OUTCOMES

 Increased stress and anxiety among individuals, which decreases productivity and
satisfaction

 Feelings of being defeated and demeaned, which lowers individuals’ morale and may
increase turnover

 A climate of mistrust, which hinders the teamwork and cooperation necessary to get
work done

WAYS TO MANAGE A CONFLICT

A. Change the Structure

 When structure is a cause of dysfunctional conflict, structural change can be the

solution to resolving the conflict.
 B. Change the Composition of the Team

 If the conflict is between team members, the easiest solution may be to change the
composition of the team, separating the personalities that were at odds.

C. Create a Common Opposing Force

 Group conflict within an organization can be mitigated by focusing attention on a

common enemy such as the competition

D. Consider Majority Rule

 Sometimes a group conflict can be resolved through majority rule. That is, group
members take a vote, and the idea with the most votes is the one that gets
implemented.

E. Problem Solve

 Problem solving is a common approach to resolving conflict. In problem-solving mode,

the individuals or groups in conflict are asked to focus on the problem, not on each
other, and to uncover the root cause of the problem.

CONFLICT HANDLING STYLES

A. Avoidance

 An uncooperative and unassertive conflict-handling style.

 People exhibiting this style seek to avoid conflict altogether by denying that it is there.
They are prone to postponing any decisions in which a conflict may arise.

B. Accommodation

 A cooperative and unassertive conflict-handling style.

 In this style, the person gives in to what the other side wants, even if it means giving
up one’s personal goals. People who use this style may fear speaking up for themselves
or they may place a higher value on the relationship,

believing that disagreeing with an idea might be hurtful to the other person.

C. Compromise

 A middle-ground conflict handling style, in which a person has some desire to express
their own concerns and get their way but still respects the other person’s goals as
well.
 D. Competing

 A conflict-handling style that is highly assertive but low on cooperation.

 They are more interested in getting the outcome they want as opposed to keeping the
other party happy, and they push for the deal they are interested in making.

E. Collaboration

 A conflict-handling style that is high on both assertiveness and cooperation. This is a

strategy to use for achieving the best outcome from conflict—both sides argue for their
position, supporting it with facts and rationale while listening attentively to the other
side.

NEGOTIATION

• A process whereby two or more parties work toward an agreement.

• A process in which groups with conflicting interests meet together to make offers,
counteroffers, and concessions to each other in an effort to resolve their differences

PHASES OF NEGOTIATION

Phase 1: Investigation

• The first step in negotiation in which information is gathered.

• This is a key stage that is often ignored. The first place to begin is with yourself: What are your
goals for the negotiation? What do you want to achieve? What would you concede? What
would you absolutely not concede?

Phase 2: Determine Your BATNA

• One important part of the investigation and planning phase is to determine your BATNA, which
is an acronym that stands for the “best alternative to a negotiated agreement.”

• Thinking through your BATNA is important to helping you decide whether to accept an offer
you receive during the negotiation.

Phase 3: Presentation
 • In this phase, you assemble the information you’ve gathered in a way that supports your
position.

Phase 4: Bargaining

• During the bargaining phase, each party discusses their goals and seeks to get an agreement.

• A natural part of this process is making concessions, namely, giving up one thing to get
something else in return.

• Making a concession is not a sign of weakness—parties expect to give up some of their goals.

Phase 5: Closure

• The last part of negotiation in which you and the other party have either come to an
agreement on the terms, or one party has decided that the final offer is unacceptable and
therefore must be walked away from.

Alternative Dispute Resolution

• Also called third party negotiations

• Includes mediation, arbitration, and other ways of resolving conflicts with the help of a specially
trained, neutral third party without the need for a formal trial or hearing.

1. Mediation

 A process in which an outside third party (the mediator) enters the

situation with the goal of assisting the parties to reach an agreement.

 The mediator can facilitate, suggest, and recommend. The mediator works
with both parties to reach a solution but does not represent either side.
Rather, the mediator’s role is to help the parties share feelings, air and
verify facts, exchange perceptions, and work toward agreements.

2. Arbitration
  A process that involves bringing in a third party, the arbitrator, who has the
authority to act as a judge and make a binding decision to which both
parties must adhere.

 The arbitrator is a neutral third party, but the decision made by the
arbitrator is final (the decision is called the “award”). Awards are made in
writing and are binding to the parties involved in the case.

LESSON 15: ORGANIZATIONAL DESIGN

ORGANIZATIONAL STRUCTURE

• How individual and teamwork within an organization is coordinated.

• The formal system of task and reporting relationships that controls, coordinates, and
motivates employees so that they cooperate and work together to achieve an organization’s
goals.

ORGANIZATIONAL DESIGN

• The process by which managers select and manage various dimensions and components of
organizational structure and culture so that an organization can achieve its goals

CONTINGENCIES AFFECTING ORGANIZATIONAL DESIGN

A. The Organizational Environment

 The conditions of the environment whether there is uncertainty or stability will make
managers decide on what kind of organizational structure is needed

B. Technology

 The combination of skills, knowledge, tools, machines, computers, and equipment

used in the design, production, and distribution of goods and services.

C. Human Resources and the Employment Relationship

  In general, the more highly skilled an organization’s work force, or the more a
company relies on empowered work teams to find ways to improve performance, the
more likely are employees to work together in groups or teams to perform their tasks.

ELEMENTS OF ORGANIZATIONAL STRUCTURE

A. Centralization

 The degree to which decision-making authority is concentrated at higher levels in an

organization.

B. Formalization

 The extent to which policies, procedures, job descriptions, and rules are written and
explicitly articulated.

C. Hierarchical Levels

 tall structures - An organization where there are several layers of management

between frontline employees and the top level.

 flat structures - An organization with few layers, often with large numbers of
employees reporting to a single manager.

D. Span of Control

 The number of employees reporting to a single manager.

E. Departmentalization

 Functional structures-Grouping of jobs based on similarity in functions.

 Divisional structures- Grouping of jobs based on the products, services, customers, or

geographic locations the company is serving.

CONFIGURATIONS OF ORGANIZATIONAL STRUCTURES

A. MECHANISTIC

 Structures that resemble a bureaucracy and are highly formalized and centralized.

B. ORGANIC

 Flexible and decentralized structures with low levels of formalization where

communication lines are more fluid and flexible.
CONTEMPORARY FORMS OF ORGANIZATIONAL STRUCTURE

A. Matrix Organizations

 A cross between a traditional functional structure with a product structure.

Specifically, employees reporting to department managers are also pooled together to
form project or product teams.

 violates the unity of command principle that is often prevalent in traditional

organizations.

 Unity of command - A situation where each person reports to a single

manager. Traditional organizations are based on the principle of unity of
command, while matrix organizations do not follow this principle.

 An example of a matrix structure at a software development company. Business

analysts, developers, and testers each report to a functional department manager and
to a project manager simultaneously

B. Boundaryless Organizations

 A term coined by Jack Welch of GE and refers to an organization that eliminates

traditional barriers between departments as well as barriers between the organization
and the external environment.

 Forms

 Modular Organization- An organization where all the nonessential functions

are outsourced.

- The idea behind this format is to retain only the value-generating and
strategic functions in-house, while the rest of the operations are
outsourced to many suppliers.

- An example of a company doing this is Toyota. By managing relationships

with hundreds of suppliers, Toyota achieves efficiency and quality in its
operations.

 Strategic Alliances- A form of boundaryless design where two or more

companies find an area of collaboration and combine their efforts to create a
partnership that is beneficial for both parties.

- example, Starbucks Corporation formed a highly successful partnership

with PepsiCo Inc. to market its Frappuchino cold drinks

C. Learning Organization
  An organization where acquiring knowledge and changing behavior as a result of the
newly acquired knowledge is part of an organization’s design.

 By benchmarking against industry best practices, they constantly look for ways of
improving their own operations.

 In these structures, experimenting, learning new things, and reflecting on new

knowledge are the norms

 For example, Xerox Corporation uses anthropologists to understand and gain insights
into how customers are actually using their office products.

LESSON 16. ORGANIZATIONAL CHANGE AND DEVELOPMENT

ORGANIZATIONAL CHANGE

 The movement of an organization away from its present state and toward some desired future
state to increase its effectiveness.
 The movement of an organization from one state of affairs to another.

FORCES OF ORGANIZATIONAL CHANGE

COMPETITIVE FORCES

 Managers and employees must continually work to achieve a competitive advantage over their
rivals by performing their tasks in a more effective way.

DEMOGRAPHIC AND SOCIAL FORCES

 Managing a diverse workforce is one of the biggest challenges that confronts organizations
today.

ETHICAL FORCES

 While organizations must change in response to demographic and social forces, it is important
that they do so in an ethical way—especially in the face of increasing government, political, and
public scrutiny

ECONOMIC, POLITICAL, AND GLOBAL FORCES

 No organization can afford to ignore the effects of global economic and political forces on its
activities. The rise of low-cost overseas competitors, the development of a new technology that
erodes a company’s competitive advantage, and the failure to take advantage of low-cost inputs
from abroad all spell doom to organizations in the global marketplace.

RESISTANCE TO CHANGE
ACTIVE RESISTANCE

 The most negative reaction to a proposed change attempt.

PASSIVE RESISTANCE

 Being disturbed by changes without necessarily voicing these opinions

COMPLIANCE

 Going along with proposed changes with little enthusiasm.

ENTHUSIASTIC SUPPORT

 Defenders of the new way and actually encourage others around them to give support to the
change effort as well.

REASONS FOR RESISTANCE TO CHANGE

Disrupted Habits

 People often resist change for the simple reason that change disrupts our habits.

Personality

 Research shows that people who have a positive self-concept are better at coping with change,
probably because those who have high self-esteem may feel that whatever the changes are,
they are likely to adjust to it well and be successful in the new system.

Feelings of Uncertainty

 Change inevitably brings feelings of uncertainty.

Fear of Failure

 People also resist change when they feel that their performance may be affected under the new
system.

Personal Impact of Change

 People tend to be more welcoming of change that is favorable to them on a personal level (such
as giving them more power over others, or change that improves quality of life such as bigger
and nicer offices).

Prevalence of Change

 The lack of a history of successful changes may cause people to feel skeptical toward the newly
planned changes.
Perceived Loss of Power

 One other reason why people may resist change is that change may affect their power and
influence in the organization.

LEWIN’S THREE-STAGE PROCESS OF CHANGE

1. UNFREEZING- making sure that organizational members are ready for and receptive to change
2. CHANGE- executing the planned change
3. REFREEZING - involves ensuring that change becomes permanent and the new habits, rules, or
procedures become the norm

UNFREEZING PRIOR TO CHANGE

 Create a Vision for Change

 Communicating a Plan for Change
 Develop a Sense of Urgency
 Building a Coalition
 Provide Support
 Allow Employees to Participate

EXECUTING CHANGE

 Continue to Provide Support

 Create Small Wins
 Eliminate Obstacles

REFREEZING

 Publicize Success
 Build on Prior Change
 Reward Change Adoption
 Make Change a Part of Organizational Culture

ORGANIZATIONAL DEVELOPMENT (OD)

o A series of techniques and methods that managers can use in their action research program to
increase the adaptability of their organization

OD TECHNIQUES TO DEAL WITH RESISTANCE TO CHANGE

EDUCATION AND COMMUNICATION

- One of the most important impediments to change is uncertainty about what is going to
happen. Through education and communication, internal and external agents of change can
inform members of the organization about the change and how it will affect them
PARTICIPATION AND EMPOWERMENT

- Inviting employees to participate in the change process is becoming a popular method of

reducing resistance to change. Participation complements empowerment by increasing
employees’ involvement in decision making and giving them greater autonomy to change their
work procedures.

FACILITATION

- Both managers and employees find change stressful because established task and role
relationships alter as it takes place.

- Many companies employ psychologists and consultants to help employees handle the stress
associated with change.

BARGAINING AND NEGOTIATION

- Bargaining and negotiation are important tools that help managers manage conflict
- Because change causes conflict, bargaining can counter resistance to change.

MANIPULATION

- When it is clear that change will help some individuals and groups at the expense of others,
senior managers need to intervene in the bargaining process and manipulate the situation to
secure the agreement, or at least the acceptance, of various people or groups to the results of
the change process

COERCION

The ultimate way to eliminate resistance to change is to coerce the key players into accepting change
and threaten dire consequences if they choose to resist. Employees and managers at all levels can be
threatened with reassignment, demotion, or even termination if they resist or threaten the change
process