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Hewlett-Packard. The HP Way Shunned rigid hierarchy Big Bonuses First All-company profit sharing When HP went public (shares all employees) HP Trusts employees Not Coddling (fire unethical employees) Current situation. Pfeffer’s Seven People-Centered Practices. 1-1. Job security

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hewlett packard
Hewlett-Packard
  • The HP Way
    • Shunned rigid hierarchy
    • Big Bonuses
    • First All-company profit sharing
    • When HP went public (shares all employees)
    • HP Trusts employees
    • Not Coddling (fire unethical employees)
    • Current situation
slide3

Pfeffer’s Seven People-Centered Practices

1-1

  • Job security
  • Careful hiring
  • Power to the people
  • Generous pay for performance
  • Lots of training
  • Less emphasis on status
  • Trust building

71% of U.S. workers consider themselves ‘disengaged’ clock-watchers who can’t wait to go home.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

slide4
What was your best job?
  • Why was it your best job?
slide5

People

(Skilled, motivated

people who can handle

change. Less stress.)

Productivity

(Less wasteful, more

efficient use of all

resources.)

Products

(Satisfied customers

because of better

quality goods/services.

Job creation.)

Processes

(Faster, more flexible,

leaner, and ethical organizational

processes. Organizational learning.)

The 4-P Cycle of Continuous Improvement

1-2 Figure 1-1

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide6

Skills & Best Practices:

The Effective Manager’s Skill Profile

1-3

  • Clarifies goals and objectives for everyone involved.
  • Encourages participation, upward communication, and suggestions.
  • Plans and organizes for an orderly workflow
  • Has technical and administrative expertise to answer organization-related questions.
  • Facilitates work through team building, training, coaching, and support.

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slide7

Skills & Best Practices:

The Effective Manager’s Skill Profile (Cont.)

1-4

  • Provides feedback honestly and constructively.
  • Keeps things moving by relying on schedules, deadlines, and helpful reminders.
  • Controls details without being overbearing.
  • Applies reasonable pressure for goal accomplishment.
  • Empowers and delegates key duties to others while maintaining goal clarity and commitment.
  • Recognizes good performance with rewards and positive reinforcement.

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slide11

Primary role

Order giver, privileged elite, manipulator, controller

Facilitator, team member, teacher, advocate, sponsor, coach, partner

Learning and knowledge

Periodic learning, narrow specialist

Continuous life-long learning, generalist with multiple specialties

Compensation criteria

Time, effort, rank

Skills, results

Cultural orientation

Monocultural, monolingual

Multicultural, multilingual

Evolution of 21st Century Managers

1-5 Table 1-1

Past Managers

Future Managers

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slide12

Primary source of influence

Formal authority

Knowledge (technical and interpersonal)

View of people

Potential problem

Primary resource

Primary communication-pattern

Vertical

Multidirectional

Decision-making style

Limited input for individual decisions

Broad-based input for joint decisions

Evolution of 21st Century Managers (Cont.)

1-6 Table 1-1

Past Managers

Future Managers

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slide13

Ethical considerations

Afterthought

Forethought

Nature of interpersonal relationships

Competitive (win-lose)

Cooperative (win-win)

Handling of power and key information

Hoard and restrict access

Share and broaden access

Approach to change

Resist

Facilitate

Evolution of 21st Century Managers (Cont.)

1-7 Table 1-1

Past Managers

Future Managers

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slide14

McGregor’s Theory X and Theory Y

1-8

Theory X

  • Most people dislike work
  • Most people must be coerced and threatened before they will work
  • Most people actually prefer to be directed

Theory Y

  • Work is a natural activity
  • People are capable of self-direction and self-control
  • Rewards cause people to be more committed to organizational goals
  • The typical employee can learn to accept and seek responsibility
  • People are imaginative, creative and have ingenuity

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slide15

What is TQM?

1-9

Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction

Principles of TQM

  • Do it right the first time to eliminate costly rework.
  • Listen to and learn from customers and employees.
  • Make continuous improvement an everyday matter.
  • Build teamwork, trust and mutual respect.

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slide16
85-15 rule
  • System versus People
  • The power of stories
  • It depends (contingency approach)
slide17

The Age of Human and Social Capital

1-10

Human Capital

  • The productive potential of one’s knowledge and actions

Social capital

  • The productive potential of strong, trusting, and cooperative relationships

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slide18

The Strategic Importance and Dimensions

of Human and Social Capital

1-11 Figure 1-2

Strategic

Assumption

Individual

Human Capital

Social Capital

Organizational Learning

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slide19

Company

Program or activity

TDIndustries

Dallas

1,393 employees

“Education is foremost at this construction company, where all employees—called ‘partners’—are allowed 100% reimbursement of tuition, fees, and books at any state-supported college.”

A.G. Edwards

St. Louis

16,482 employees

“The brokerage…spends $75,000 per worker on training, and just built AGEU, a 20,000 square foot education center for new financial consultants”

Skills & Best Practices: How to Build Human

and Social Capital

1-12

Building Human Capital

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide20

Company

Program or activity

Microsoft

Redmond, WA

36,665 employees

“The software giant…matches charity donations up to $12,000.”

American Express

New York

43,477 employees

“The 153-year-old travel and financial services firm…recently reinstated 12-week sabbaticals [so] staff can take time off to work at nonprofits.”

Skills & Best Practices: How to Build Human

and Social Capital (Cont.)

1-13

Building Social Capital

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide21

Company

Program or activity

Timberland

Stratham, NH

2,116 employees

“The maker of rugged footwear gives employees up to 40 hours a year of paid time off for community service.”

Skills & Best Practices: How to Build Human

and Social Capital (Cont.)

1-14

Building Social Capital

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide22

Positive Organizational Behavior

1-15

  • Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide23

Good Job!

People Need Praise

L1-1

  • Negative employees can scare off customers—for good.
  • Increasing positive emotions could lengthen life span by 10 years.
  • Praise is a powerful leadership strategy.
  • 65% of people said they received no recognition for good work.
  • The number 1 reason most Americans leave their jobs is that they don’t feel appreciated.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide24

Those Who Give and Get Praise:

L1-2

  • Increase their individual productivity.
  • Increase engagement among their colleagues.
  • Are more likely to stay with their current organization.
  • Receive higher loyalty and satisfaction scores from customers.
  • Have better safety records and fewer accidents on the job.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide26

Organizational Culture,

Socialization, and Mentoring

Learning Objectives

  • Discuss the layers and functions of organizational culture.
  • Describe the three general types of organizational culture and their associated normative beliefs.
  • Summarize the methods used by organizations to embed their cultures.
  • Describe the three phases in Feldman’s model of organizational socialization.
  • Discuss the various socialization tactics used to socialize employees.
  • Explain the four types of developmental networks derived from a developmental network model of mentoring

Chapter Two

costco
Costco
  • Markups only 14%
  • Hourly employees $40,000 after 4 years
  • Generous return policy
    • “Costco continues to be a company that is better at serving the club member and employee than the shareholder”
  • Axioms
    • 1. Obey the law
    • 2. Take care of your customers
    • 3. Take care of your employees
    • 4. Practice the intelligent loss of sales (SKUs
slide28

Organizational Culture

2-1

  • Organizational cultureshared values and beliefs that underlie a company’s identity.

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slide29

A Conceptual Framework for Understanding

Organizational Culture

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slide30

Observable

Artifacts

Espoused

Values

Basic Underlying

Assumptions

Layers of Organizational Culture

2-3

Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17.

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide31

Organizational

identity

Collective

commitment

Sense-making

device

Organizational

culture

Social system

stability

Four Functions of Organizational Culture

2-4 Figure 2-2

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide32

General Types of Culture

Normative Beliefs

Organizational Characteristics

Constructive

Achievement

Goal and achievement oriented

Constructive

Self-actualizing

Value self-development and creativity

Constructive

Humanistic-encouraging

Participative, employee-centered, and supportive

Constructive

Affiliative

High priority on constructive interpersonal relationships, and focus on work group satisfaction

Types of Organizational Culture

2-5 Table 2-1

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slide33

General Types of Culture

Normative Beliefs

Organizational Characteristics

Passive-defensive

Approval

Avoid conflict, strive to be liked by others and approval oriented

Passive-defensive

Conventional

Conservative, bureaucratic and people follow the rules

Passive-defensive

Dependent

Nonparticipative, centralized decision-making, and employees do what they’re told

Passive-defensive

Avoidance

Negative reward system and avoid accountability

Types of Organizational Culture (Cont.)

2-6 Table 2-1

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide34

General Types of Culture

Normative Beliefs

Organizational Characteristics

Aggressive-defensive

Oppositional

Confrontation and negativism awarded

Aggressive-defensive

Power

Nonparticipative, take charge of subordinates and responsive to superiors

Aggressive-defensive

Competitive

Winning is valued and a win-lose approach is used

Aggressive-defensive

Perfectionistic

Perfectionistic, persistent and hard-working

Types of Organizational Culture (Cont.)

2-7 Table 2-1

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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what researchers have learned
What researchers have learned
  • Constructive culture is positively related with employee behavior and attitude (DUHHHH)
  • People felt more comfortable in companies whose culture matched their personal value systems (Double Duhhhh)
  • No correlation between company culture and financial performance (Whatttt?)
  • Flexible cultures more likely to yield higher financial performance (Interesting)
  • 7 of 10 mergers and acquisitions fail to meet their financial promise (can culture be an issue? HP/Compaq)
slide36

Embedding Organizational Culture

2-8

  • Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization
  • The design of physical space, work environments, and buildings
  • Slogans, language, acronyms, and sayings
  • Deliberate role modeling, training programs, teaching and coaching by managers and supervisors
  • Explicit rewards, status symbols (e.g., titles),and promotion criteria
  • Stories, legends, and myths about key people and events

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide37

Embedding Organizational Culture (Cont.)

2-9

  • The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control
  • Leader reactions to critical incidents and organizational crises
  • The workflow and organizational structure
  • Organizational systems and procedures
  • Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people

© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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slide38

Culture

HR Embeds

Organizational Culture

L2-1

HR is the keeper of:

  • Selection
  • Socialization
  • Training and Development
  • Evaluation Systems

Culture

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slide39

Embedding a Culture Based on a

Founder’s Personality

L2-2

HR Benefits when:

  • The founder’s personality is charismatic, vibrant, honest and ethical
  • Leonard Gentine of Sargento Foods: after his death, the family keeps his spirit alive through his image and presenting a Founder’s Ring to employees best displaying Sargento culture
  • Charles Schwab believed that employees should follow the company’s values or be fired: his own son was fired after giving investment advice: a no-no in Schwab culture

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slide40
HR is challenged when:

The founder is involved in scandal or engages in questionable public activity

Henry Ford stepped down from the company and got involved in politics and anti-Semitism

Martha Stewart carefully crafted her brand based on her image as a wholesome homemaker only to be convicted of securities fraud

Embedding a Culture Based on a

Founder’s Personality

L2-3

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slide41

Our Culture

HR and Employee Ownership

L2-4

HR builds employee ownership of culture:

  • Peg employee recognition to the corporate culture.
  • Connect culture to the bottom line.
  • Emphasize the company’s history.
  • Communicate constantly with all levels of employees.

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slide42

Application of Primary Embedding

Mechanisms at Enron

L2-5

Embedding Mechanism: What leaders pay attention to, measure and control on a regular basis

Application at Enron:

  • Wanted employees to focus on the bottom line
  • A former employee said Jeffrey Skilling was a leader driven by money
  • “Skilling would say all that matters is money. You buy loyalty with money”

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slide43

Application of Primary Embedding

Mechanisms at Enron (Cont.)

L2-6

Embedding Mechanism: How leaders react to critical incidents and organizational crises

Application at Enron:

  • Defended a culture that valued profitability, at the expense of everything else
  • Shifted the blame and pointed fingers
  • Fired those it could not lay blame on
  • Covered up any evidence of problems or wrongdoing

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slide44

A Model of Organizational Socialization

2-10 Figure 2-3

Perceptual and Social Processes

Phases

  • Anticipating realities about the organization and the new job
  • Anticipating organization’s needs for one’s skills and abilities
  • Anticipating organization’s sensitivity to one’s needs and values
  • Anticipatory Socialization
  • Learning that occurs prior to joining the organization

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slide45

A Model of Organizational Socialization (Cont.)

2-11 Figure 2-3

Perception and Social Processes

Phases

2. Encounter Values, skills and attitudes start to shift as new recruit discovers what theorganization is trulylike

  • Managing lifestyle- versus-work conflicts
  • Managing intergroup role conflicts
  • Seeking role definition and clarity
  • Becoming familiar with task and group dynamics

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slide46

A Model of Organizational Socialization (Cont.)

2-12 Figure 2-3

Perception and Social Processes

Phases

3. Change and acquisition Recruit masters skills and roles and adjusts to workgroup’s values and norms

  • Competing role demands are resolved
  • Critical tasks are mastered
  • Group norms and values are internalized

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slide48

Tactic

Description

Collective vs. Individual

Collective: consists of grouping newcomers and exposing them to a common set of experiences; Individual: exposing each individually to a set of unique experiences

Formal vs. Informal

Formal: Segregating newcomer from regular organization members; Informal: not distinguishing between newcomer and experienced members

Sequential vs. Random

Sequential: fixed progression of steps that culminate in the new role; Random: ambiguous or dynamic progression

Socialization Tactics

2-14 Table 2-2

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slide49

Tactic

Description

Fixed vs. Variable

Fixed: provides a timetable for the assumption of the role; Variable: does not provide timetable

Serial vs. Disjunctive

Serial: newcomer is socialized by an experienced member; Disjunctive: does not use a role model

Investiture vs. Divestiture

Investiture: affirmation of newcomer’s incoming global and specific role identities and attributes; Divestiture: denial and stripping away of the newcomer’s existing sense of self to rebuild in the organization’s image

Socialization Tactics (Cont.)

2-15 Table 2-2

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slide50

Mentoring and Functions of Mentoring

2-16

  • Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person

Functions of Mentoring

  • Career Functions- Sponsorship- Exposure-and-visibility- Coaching- Protection- Challenging assignments
  • Psychosocial Functions- Role modeling- Acceptance-and-confirmation- Counseling- Friendship

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slide51

Skills & Best Practices: Building an

Effective Mentoring Network

2-18

  • Become the perfect protégé
  • Engage in 360-degree networking
  • Commit to assessing, building, and adjusting the mentor network
  • Develop diverse, synergistic connections
  • Realize that change is inevitable and that all good things come to an end

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