MANA 3319
Review For Exam 2
Chapter 11. Managing Employee Diversity.
Diversity: describes a wide spectrum differences between people. Groups of individuals share characteristics that distinguish them from other groups. The differences between groups are smaller than the differences within groups. Classifying people into group types often leads to false stereotypes because it incorrectly assumes that group averages apply to all individuals in the group. In the organization it provides:
· A powerful competitive edge
· The ability to foster creativity
· Improve problem solving
· Provide greater flexibility
· Make the firm more attractive to a broad labor market
Advantages
1. Better market access
2. Better Team Performance
3. Improved International Competition
4. Multiple points of view
Disadvantages
1. Pressure towards homogenization
2. Lower cohesiveness
3. Confusing diversity with Affirmative Action
4. Interpersonal Conflict and Tension
The US Work-Force is a mosaic of diverse cultures and groups
African Americans
11.3 % population
11.8 % workforce
Asian Americans
3.6 % population
Wide variety of races ethnic groups and nationalities
Disabled Americans
50 million Americans
55.8% are employed
Accommodating disabled employees is less expensive than organizations think it is.
Hispanic Americans
About 28 million people (10 percent of U.S. population)
Actual number is around 40 million people
Foreign-Born Americans
About 10 percent of U.S. population
About 820,000 immigrants enter the U.S. legally every year
Homosexuals:
Estimated to be between 1 to 10 percent of the population
No federal laws to protect
Women
Half of the labor force is female
Glass ceiling and sexual harassment issues
Older Workers
The average age of the U.S. workforce is expected to reach 42 by 2010.
Negative stereotypes: inflexible, resisting to learning new skills, and coasting until retirement
Building on diversity requires
Management Commitment:
o Top management commitment: Management needs to ask:
§ How can we develop all employees so that they are ready for opportunities that arise in the company?
§ How can we be sure that minorities and women gain access to better jobs, as they become available?
§ How can we make sure that we give minorities and women opportunities without discriminating against white men?
§ How can we show all employees that we value their contributions?
§ How can we change attitudes of both employees and customers?
§ Will the same approach work for new employees and those with many years of service?
o Linking diversity initiatives to business strategies and objectives
§ Should be key components of corporate mission statements
§ Inclusion in corporate handbooks
§ Examples:
· Diversity briefing for senior management
· Networking groups
· Linking diversity performance to other corporate objectives
· Benchmarking with other companies
o Management responsibility and accountability: “Diversity is not likely to become part of management and employee priorities without real accountability for specific objectives.”
§ 360-degree feedback – multirater feedback from peers, suppliers, other levels of management, and internal and external customers
§ Employee surveys
§ Performance appraisals
§ Self-evaluation
Diversity audits: Can help reveal possible sources of bias. Indicators or factors used in the audit can also be used to measure whether corrective actions have the desired effects,. They include:
· Developmental activities :
a. Diversity Training
§ Diversity is about each person coming to terms with attitudes, beliefs, and expectations
§ It is big enough to include everyone
§ No is the target to blame
§ Human beings are ethnocentric
§ The human species resists change
§ Human beings find comfort and trust in likeness
§ It is difficult for people to share power
b. Senior Mentoring
c. Diversity Learning Labs
d. Apprenticeships
· Encouraging diversity networks:
o Offers a nurturing environment to peoplE
o Company leaders may encourage employees to become part of international teams
· Accommodating family needs:
o Day-care assistance
o Flexible work schedules
o Compressed work weeks
o Job sharing
o Telecommuting
o Care assistance for elderly dependents
o Paid time off to care for family members who are ill
o Paid parental leave
o Keeping relocations to a minimum
o Giving a high priority to finding a position for spouse within the firm
o Job search assistance to relocated spouses.
Chapter 9: Managing the Structure and Design of Organizations
Organizing: The deployment of resources to achieve strategic goals. It is reflected in:
– The organization’s division of labor that forms jobs and departments.
– Formal lines of authority.
– The mechanisms used for coordinating diverse jobs and roles in the organization.
• Strategy indicates what needs to be done.
• Organizing shows how to do it.
Organization Structure
• Formal system of relationships that determine:
– Lines of authority – who reports to whom.
– Tasks assigned to individuals and units – who does what tasks and with which department.
Dimensions of organization structure:
a. Vertical Dimension
Unity of Command:· subordinate should have only one direct supervisor.
· Decision can be traced back from the subordinates who carry it out to the manager who made it.
Authority: formal right of a manager to make decisions, give orders, and expect the orders to be carried out
Line Authority
· directly control the work of subordinates by hiring, discharging
· evaluating, and rewarding them
· line managers hold positions that contribute directly to the strategic goals of the organization
· part of the chain of command
Staff Authority
· the right to provide advice, recommend, and counsel line managers and others in the organization
Responsibility: manager’s duty to perform an assigned task.
Accountability: the manager (or other employee) with authority and responsibility must be able to justify results to a manager at a higher level in the organizational hierarchy.
Span of Control: the feature of vertical structure that outlines:
Ø The number of subordinates who report to a manager.
Ø The number of managers.
Ø The layers of management within an organization.
• Smaller span – fewer employees supervised by a manager – creates a tall vertical organizational structure
• Larger span – greater number of employees supervised – creates a flat organizational structure
Centralization: the location of decision authority at the top of the organization hierarchy.
Decentralization: the location of decision authority at lower levels in the organization.
Formalization: the degree of written documentation that is used to direct and control employees.
b. Horizontal Dimensions
Functional Department Structure
/ 1. Decision authority is centralized at the top of the organization hierarchy
2. Career paths foster professional identity with the business function
3. High degree of efficiency
4. Economies of scale help develop specialized expertise in employees / 1. Communication barriers
2. Conflict between departments
3. Coordination of products and services is difficult
4. Diminished responsiveness to customers’ needs
5. Employees identify with functional department goals and not organization goals or needs of the customer
Divisional Structure
Geographical Structure / 1. Coordination among different business functions
2. Improved and speedier service
3. Accountability for performance
4. Development of general manager and executive skills / 1. Duplication of resources by two or more departments
2. Reduced specialization in occupational skills
3. Competition among divisions
Matrix Structure
/ 1. Efficient utilization of scarce, expensive specialists
2. Flexibility that allows new projects to start quickly
3. Development of cross-functional skills by employees
4. Increased employee involvement in management decisions affecting project or product assignments / 1. Employee frustration and confusion as a result of the dual chain of command
2. Conflict between product and functional managers over deadlines and priorities
3. Too much time spent in meetings to coordinate decisions
Coordination Mechanisms:
· Meetings
· Organization Wide Reward Systems
· Task Forces and Teams
· Liaison Roles
· Integrating Managers
· Organizational Culture
Organization Designs: The selection of an organization structure that best fits the strategic goals of the business.
• Basic organization designs:
• These designs incorporate vertical and horizontal structural elements.
• Change with Business Strategy
• Strategic factors that affect the choices of organization design:
1. Organization capabilities
2. Technology
3. Organization size
4. Environmental turbulence
Organizations are re-designed by:
• Merger
• Acquisition
• Divestiture
• Downsizing
Chapter 10: Human Resource Management
Dealing effectively with human resource (HR) issues is essential for all managers.
The human resource staff supports managers in carrying out HR responsibilities.
Issuers managers need to focus on are:
· Work Force Diversity( Remember Chapter11)
· Unionization: The number of Unions has been declining over the years.
o Factors contributing to this decline:
§ Strong employer challenges to unions
§ Plant closures
§ International competition
§ Shrinking manufacturing sector
o Labor Contract: Written agreement between union and management that specifies pay schedule, fringe benefits, COLA, and the like.
o In the U.S., labor relations are characterized by:
§ Business unionism
§ Job-based unionism
§ Collective bargaining
§ Voluntary contracts
§ Adversarial relationships( you do not need to know the Acts.)
· Legislation: Includes Key issues like: (You need to read about these in the book, do not memorize the ACTs)
o Equal Opportunity
o Employment at will
o Protected Class
o Sexual Harassment
o Disparate Treatment
o Adverse impact
§ Job relatedness
§ BFOQ( Bona Fide Occupational Qualifications)
§ Seniority
· Globalization
Functions of HR in the Organization.
SHRP: Developing a vision about where the company wants to be and how it can use human resources to get there. The ultimate objective is SHRP is a sustained competitive advantage.
Human Resource Planning
Staffing: Consists of
a. Recruitment – the process of generating a pool of qualified candidates for a particular job. effective recruitment effort should create a pool of qualified applicants.
b. Selection – the screening process used to decide which of the applicants to hire. Issues to be considered here are:
· Validity is how well a technique used to assess candidates is related to performance on the job. Demonstrated by:
o Content Validity
o Empirical Validity
· Reliability is a measure of the consistency of results of the selection method.
Tools:
Application Form
Letter of Recommendation
Ability Tests
Personality Tests
Honesty Tests
Psychological Tests
Performance Simulation Tests
Interviews
Physical Exams
Orientation: Helps new employees to:
· Learn more about the company
· Learn what is expected of them in the job
· Reduce the initial anxiety of a transition
· Become familiar with co-workers
· Learn about work rules and personnel policies
Employee Training
Training is a planned effort to provide employees with specific skills to improve their performance.
Effective training
– improves morale
– improves an organization’s potential.
The Training Process:
Techniques Used:
· Slides
· CAI
· Lectures
· Simulations
· Cross Functional Training
The Career Planning Process: Long-term effort in which the organization helps employees utilize their full potential.
Involves three major phases:
Ø Assessment- choose realistically attainable career paths
Ø Direction- determine the steps needed for employees to attain goals
Ø Development- Outlines actions for employees.
Performance Appraisal
a. Two-way communication between supervisors and employees.
b. Constructive feedback to employees in order to capitalize on strengths and reduce weaknesses.
c. Helps managers in making payment decisions
Approaches to Performance Appraisal:
Judgment Approaches
· Relative judgments
· Absolute judgments
Measure Approaches
· Traits
· Behaviors Observation
· Behavioral anchored rating scales- critical incidents
· Outcomes
MBO is a kind of performance appraisal
Compensation: Employees are paid for their contributions to the company.
3 Objectives
Attract high-quality workers from the labor market.
Retain the best employees the company already has.
Motivate employee performance.
Components of Compensation
A Good Compensation System Should:
Fit the firm’s strategic objectives
Fit with the firm’s characteristics and environment
Achieve internal equity (perception of fairness)
Achieve external equity
Be based on employee contributions.
Chapter 12: Motivation
Motivation is of two types.
a. Intrinsic motivation- comes from the personal satisfaction of the work itself.
b. Extrinsic motivation – comes from the rewards that are linked to job performance, such as a paycheck.
The theories of Motivation can be divided into the following categories:
a. Content theories of motivation seek to understand what underlies and drives motivation
b. Process theories of motivation seek to understand what steps can be taken to improve and maintain motivation
a. Maslow’s Hierarchy of Needs.
b. Alderfer’s ERG Theory:
Growth
Relationships
Existence
c. Herzberg’s Two Factor Theory: focuses on characteristics that motivate and reduce motivation at work.
Lack of Hygiene Factors= Dissatisfaction
Presence of Hygiene factors= No Dissatisfaction
Lack of Motivators= No Satisfaction
Presence of Motivator= Satisfaction
d. McClelland’s Theory of Learned Needs: identifies the set of needs that can serve as motives.
Process Views Of Motivation
Process theories of motivation seek to understand what steps can be taken to improve and maintain motivation
a. Goal-Setting Theory
Effective Goals are:
Ø Accepted by employees
Ø Challenging and realistic
Ø Specific, quantifiable, and measurable
Ø SMART
MANAGEMENT BY OBJECTIVES:
c. Equity Theory:
Inequity occurs when the ratio is not equivalent and creates cognitive dissonance
To restore equity, people may use one of the following:
i. Reduce inputs by cutting back on the effort, and if the imbalance becomes too great, to leave the firm
ii. Influence the outcome, such as persuade the boss for a raise
iii. Decrease others’ outcomes, such as spread rumors about others