DEFINITIONS

1
DEFINITIONS
1.1

• MANAGEMENT The planning, organizing, leading,
  and controlling of human and other resources to
  achieve organizational goals effectively and
  efficiently.
• ORGANIZATIONAL PERFORMANCE A measure of how
  efficiently and effectively a manager uses
  resources to satisfy customers and achieve
  organizational goals.
• EFFICIENCY A measure of how well or
  productively resources are used to achieve a
  goal.
• EFFECTIVENESS A measure of the appropriateness
  of the goals an organization is pursuing and of
  the degree to which the organization achieves
  those goals.

2
1.2
EFFICIENCY EFFECTIVENESS
EFFICIENCY
LOW
HIGH
Low efficiency/High effectiveness Manager
chooses the right goals to pursue, but does a
poor job of using resources to achieve these
goals. Result A product that customers want, but
that is too expensive for them to buy.
High.efficiency/High effectiveness Manager
chooses the right goals to pursue, and makes good
use of resources to achieve these goals. Result
A product that customers want at a quality and
price they can afford.
HIGH
EFFECTIVENESS
Low efficiency/Low effectiveness Manager chooses
wrong goals to pursue, and makes poor use of
resources. Result A low-quality product that
customers do not want.
High.efficiency/Low effectiveness Manager
chooses inappropriate goals, but makes good use
of resources to pursue these goals. Result A
high-quality product that customers do not want.
LOW
3
FUNCTIONS OF MANAGEMENT
1.3

• PLANNING Choose appropriate organizational
  goals and courses of action to best achieve those
  goals.
• ORGANIZING Establish task and authority
  relationships that allow people to work together
  to achieve organizational goals.
• LEADING Motivate, coordinate, and energize
  individuals and groups to work together to
  achieve organizational goals.
• CONTROLLING Establish accurate measuring and
  monitoring systems to evaluate how well the
  organization has achieved its goals.

4
MANAGERIAL ROLES
1.4

• DECISIONAL
• ENTREPRENEUR
• DISTURBANCE HANDLER
• RESOURCE ALLOCATOR
• NEGOTIATOR
• INTERPERSONAL
• FIGUREHEAD
• LEADER
• LIAISON
• INFORMATIONAL
• MONITOR
• DISSEMINATOR
• SPOKESPERSON

5
BUILDING COMPETITIVE ADVANTAGE
1.5

• EFFICIENCY
• INNOVATION
• QUALITY
• RESPONSIVENESS TO CUSTOMERS

6
SCIENTIFIC MANAGEMENT
2.1

• 1. Study the way workers perform their tasks,
  gather all the informal job knowledge that
  workers possess, and experiment with ways of
  improving how tasks are performed.
• Codify the new methods of performing tasks into
  written rules and standard operating procedures.
• 3. Carefully select workers who possess skills
  and abilities that match the needs of the task,
  and train them to perform the task according to
  the established rules and procedures.
• 4. Establish a fair or acceptable level of
  performance for a task, and then develop a pay
  system that provides a reward for performance
  above the acceptable level.

7
PRINCIPLES OF BUREAUCRACY
2.2

• A managers formal authority derives from the
  position he or she holds in the organization
• People should occupy positions because of their
  performance, not because of their social standing
  or personal contacts
• The extent of each positions formal authority
  and task responsibilities, and its relationship
  to other positions in the organization, should be
  clearly specified
• Authority can be exercised effectively in an
  organization when positions are arranged
  hierarchically, so employees know whom to report
  to and who reports to them
• Managers must create a well defined system of
  rules, standard operating procedures, and norms
  so that they can effectively control behavior
  within an organization

8
FAYOLS 14 PRINCIPLES OF MANAGEMENT
2.3
9
3.3
PLANNING
SCOPE
TIME
LEVEL
Entire Org.
Long Range
Corporate
Divisional
Specific Units
Short Range
Unit
10
3.4
STRATEGIC PLANNING
TACTICAL PLANNING
LONG TERM GROWTH
IMPLEMENTATION OF STRATEGIC PLANS
LONG TERM
SHORT TERM
GREATER UNCERTAINTY/RISK
LOWER UNCERTAINTY/RISK
MID-TOP MGMT
LOWER LEVEL MGMT
MODERATE DETAIL
HIGHER DETAIL
11
3.5
ASSESSMENT OF PLANNING NEEDS BASED ON
ORGANIZATIONAL ENVIRONMENT
HI
COMPLEX STATIC
COMPLEX DYNAMIC
COMPLEXITY
SIMPLE STATIC
SIMPLE DYNAMIC
LO
LO
HI
RATE OF CHANGE
12
3.6
ORGANIZATIONAL ENVIRONMENT PLANNING
SIMPLE STATIC
COMPLEX DYNAMIC
COMPLEX STATIC
SIMPLE DYNAMIC
Limited Search for Info from Market Environment
Active Search for Info from Market Environment
Maintain Competence
Reactive and Proactive Strategies
Emphasis on Internal Efficiency
Continual and Rapid Adaptation
Contingency Plans
Planning as an Ongoing Process
13
FORECASTING
3.7

• SCENARIOS
• DELPHI METHOD
• SALESFORCE ESTIMATION METHOD
• TIME SERIES ANALYSIS
• SIMULATIONS
• VIRTUAL REALITY

14
3.11
STRATEGIC PLANNING PROCESS
DIAGNOSE THREATS OPPORTUNITIES
DEVELOP STRATEGIC PLAN
DEVELOP MISSION GOALS
GENERATE ALTERNATIVE STRATEGIES
DIAGNOSE STRENGTHS WEAKNESSES
CONTROL ASSESS RESULTS
DEVELOP TACTICAL PLANS
15
FIVE FORCES MODEL
3.13

• THE LEVEL OF RIVALRY AMONG FIRMS IN AN INDUSTRY
• THE POTENTIAL FOR ENTRY INTO AN INDUSTRY
• THE POWER OF SUPPLIERS
• THE POWER OF CUSTOMERS
• THE THREAT OF SUBSTITUTE PRODUCTS

16
SWOT ANALYSIS
3.14

• POTENTIAL STRENGTHS
• POTENTIAL WEAKNESSES
• POTENTIAL OPPORTUNITIES
• POTENTIAL THREATS

17
3.15
COMPETITOR ANALYSIS
IDENTIFY COMPETITORS STRATEGIES
DETERMINE COMPETITORS OBJECTIVES
IDENTIFY COMPETITORS
SELECT COMPETITORS TO ATTACK AVOID
ASSESS COMPETITORS STRENGTHS WEAKNESSES
ESTIMATE COMPETITORS REACTIONS
18
3.20
SOME BASIC COMPETITIVE STRATEGIES

• OVERALL COST LEADERSHIP
• DIFFERENTIATION/DIVERSIFICATION
• FOCUS
• OPERATIONAL EXCELLENCE
• CUSTOMER PARTNERSHIP
• PRODUCT LEADERSHIP

19
3.24
PRODUCT/MARKET EXPANSION GRID
EXISTING MARKETS
MARKET PENETRATION
PRODUCT DEVELOPMENT
NEW MARKETS
MARKET DEVELOPMENT
DIVERSIFICATION
EXISTING PRODUCTS
NEW PRODUCTS
20
STRATEGIES FOR INTERNATIONAL BUSINESS DEVELOPMENT
3.28

• EXPORTING STRATEGY
• LICENSING STRATEGY
• FRANCHISING STRATEGY
• ALLIANCE STRATEGY
• WHOLLY OWNED FOREIGN SUBSIDIARIES
• MULTIDOMESTIC STRATEGY
• GLOBAL STRATEGY

21
LEVELS OF INTERNATIONAL INVOLVEMENT
3.30

• COMMISSION AGENT
• EXPORT MANAGER
• EXPORT DEPARTMENT
• INTERNATIONAL CORPORATION
• MULTINATIONAL CORPORATION

22
4.1
PRODUCTION SYSTEM
INPUT STAGE Raw Materials Component Parts Labor
CONVERSION STAGE Skills Machines Computers
OUTPUT STAGE Products Services
23
Creating Competitive Advantage
4.2

• Superior efficiency
• Superior quality
• Superior speed, flexibility, and innovation
• Superior responsiveness to customers

24
THE IMPACT OF INCREASED QUALITY ON ORGANIZATIONAL
PERFORMANCE
4.3
Increased Reliability
Higher Prices
Increased Quality
Higher Profits
Increased Productivity
Lower Costs
25
TOTAL QUALITY MANAGEMENT
4.6

• Build organizational commitment to quality.
• Focus on the customer.
• Find ways to measure quality.
• Set goals and create incentives.
• Solicit input from employees.
• Identify defects and trace them to their source.
• Introduce just-in-time inventory control systems.
• Work closely with suppliers.
• Design for manufacturability.
• Break down barriers between functions.

26
ORGANIZATIONAL ENVIRONMENT
5.1

• TASK ENVIRONMENT
• SUPPLIERS
• DISTRIBUTORS
• CUSTOMERS
• COMPETITORS
• GENERAL ENVIRONMENT
• ECONOMIC FACTORS
• TECHNOLOGICAL FACTORS
• SOCIOLOGICAL FACTORS
• DEMOGRAPHIC FACTORS
• POLITICAL LEGAL FACTORS
• GLOBAL FACTORS

27
5.2
ORGANIZATIONAL ENVIRONMENT
HIGH
COMPLEX STATIC
COMPLEX DYNAMIC
COMPLEXITY
SIMPLE STATIC
SIMPLE DYNAMIC
LOW
LOW
HIGH
RATE OF CHANGE
28
MANAGERS USE FUNCTIONAL DEPARTMENTS TO MANAGE
FORCESIN THE TASK AND GENERAL ENVIRONMENTS
5.3
Pressures from customers
Pressures from competitors
Pressures from suppliers
are handled by
are handled by
Marketing and strategic research
departments Finance and accounting departments
Materials management department Legal and public
relations departments
Sales and service departments Research and
development department
are handled by
are handled by
Political and legal forces
Economic forces
Technological forces
29
GLOBAL TASK ENVIRONMENT
5.6

• SUPPLIERS
• DISTRIBUTORS
• CUSTOMERS
• COMPETITORS

30
POLITICAL-LEGAL FORCES
5.8

• DOMESTIC INSTABILITY
• FOREIGN CONFLICT
• POLITICAL CLIMATE
• ECONOMIC CLIMATE

31
CULTURAL FORCES
5.10

• VIEWS OF SOCIAL CHANGE
• TIME ORIENTATION
• VALUE SYSTEMS
• LANGUAGE BARRIERS

32
HOFSTEDES DIMENSIONS OF NATIONAL CULTURE
5.13

• INDIVIDUALISM
• LOWER POWER DISTANCE
• ACHIEVEMENT ORIENTATION
• LOW UNCERTAINTY AVOIDANCE
• SHORTTERM ORIENTATION

• COLLECTIVISM
• HIGH POWER DISTANCE
• NURTURING ORIENTATION
• HIGH UNCERTAINTY AVOIDANCE
• LONGTERM ORIENTATION

33
JAPANESE MANAGEMENT SYSTEM
5.27

• PARTICIPATIVE MANAGEMENT
• WORK ETHIC
• CONCERN FOR EMPLOYEES
• ESPRIT DE CORPS
• DECISION MAKING BY CONSENSUS
• JOB ENRICHMENT
• INFORMAL IMPLICIT CONTROL
• LIFETIME EMPLOYMENT
• LAYOFFS ARE MINIMIZED
• PARTNERSHIP - BUSINESS, GOVT, LABOR
• LONG RANGE PLANNING
• COLLECTIVE RESPONSIBILITY
• MINIMAL INVENTORY
• CONTINUOUS IMPROVEMENT OF PRODUCTION
• NON-SPECIALIZED CAREER PATHS FOR MGRS
• SLOW EVALUATION PROMOTION

34
ADVANTAGES OF SPECIALIZATION
6.1

• PROFICIENCY INCREASES
• LESS WASTED MOTION (PRODUCTION TASKS)
• TRAINING FACILITATED
• REPLACEMENT FACILITATED

35
UNINTENDED RAMIFICATIONS OF EXCESSIVE
SPECIALIZATION
6.3

• LACK OF MOTIVATION
• ALIENATION
• DECREASED QUALITY
• ABSENTEEISM
• TURNOVER
• ANTI-SOCIAL BEHAVIOR
• BOREDOM
• DECREASED JOB SATISFACTION

36
6.7
JOB REDESIGN HACKMAN OLDHAM MODEL
CRITICAL PSYCH. STATES
CORE JOB DIMENSIONS
OUTCOMES
HIGH MOTIVATION
SKILL VARIETY
EXPERIENCED MEANINGFULNESS OF THE WORK
TASK IDENTITY
HIGH QUALITY
HIGH JOB SATISFACTION
TASK SIGNIFICANCE
EXPERIENCED RESPONSIBILITY FOR OUTCOMES
AUTONOMY
LOW ABSENTEEISM TURNOVER
FEEDBACK
KNOWLEDGE OF RESULTS
GROWTH NEED STRENGTH
37
6.8
IMPLEMENTATION CONSTRAINTS

• DISTRUST BETWEEN LABOR MANAGEMENT
• INDIVIDUAL DIFFERENCES - GROWTH NEED STRENGTH
• COST - IF RETOOLING IS NECESARY
• INITIAL DIP IN PRODUCTIVITY
• PAY NOT COMMENSURTE WITH NEW RESPONSIBILITIES
• SOME EMPLOYEES CANT HANDLE MORE RESPONSIBILITY
• TECHNOLOGY LIMITS ITS APPLICABILITY

38
6.12
FUNCTIONAL STRUCTURE

• ADVANTAGES/STRENGTHS
• PROMOTES SKILL SPECIALIZATION
• REDUCES DUPLICATION OF RESOURCES
• ENHANCES CAREER DEVELOPMENT TRAINING
• ALLOWS SUPS SUBS TO SHARE COMMON EXPERTISE
• PROMOTES QUALITY TECHNICAL PROBLEM SOLVING

• POTENTIAL PROBLEMS
• PROBLEMATIC IF NON-ROUTINE TASKS REQUIRING
  INTEGRATION
• REDUCES COMMUNICATION BETWEEN DEPTS
• POTENTIAL CONFLICT OVER PRIORITIES
• MAKES INTERDEPT. SCHEDULING DIFFICULT
• FOCUS ON DEPARTMENTAL RATHER THAN ORG. ISSUES
• DEVELOPS MGRS WHO ARE EXPERTS IN NARROW FIELDS

39
PRODUCT/PROJECT STRUCTURE
6.16

• ADVANTAGES/STRENGTHS
• SUITED FOR HIGH RATE OF CHANGE IN ENVIRONMENT
• FOCUS ON PRODUCT FACILITATES DEVELOPMENT
  IMPROVEMENTS
• FOSTERS CONCERN FOR CUSTOMER DEMAND
• CLEARLY DEFINES RESPONSIBILITY/ACCOUNTABILITY
• DEVELOPS MGRS WHO CAN THINK CROSS FUNCTIONALLY

• POTENTIAL PROBLEMS
• RESOURCE DUPLICATION
• PROBLEM OF COORDINATION ACROSS PRODUCT LINES
• POLITICS IN RESOURCE ALLOCATION
• RESTRICT PROBLEM SOLVING TO A SINGLE PRODUCT
• CAN LIMIT CAREER MOBILITY (DUE TO LESS
  SPECIALIZATION)

40
6.20
ORGANIZATION BASED ON CUSTOMER GROUP
(MARKET STRUCTURE)

• ADVANTAGES/STRENGTHS
• FOCUS ON THE CUSTOMER/UNDERSTAND CUSTOMER
  REQUIREMENTS
• CLEAR IDENTIFICATION OF KEY CUSTOMERS
• DEVELOP MGRS WHO BECOME CUSTOMER ADVOCATES

• POTENTIAL PROBLEMS
• LACK OF COORDINATION BETWEEN DEPTS SERVING
  DIFFERENT CUSTOMER GROUPS
• POLITICS IN RESOURCE ALLOCATION
• RESTRICTS PROBLEM SOLVING TO A SINGLE TYPE OF
  CUSTOMER

41
6.22
ORGANIZATION BASED ON TERRITORY

• ADVANTAGES/STRENGTHS
• MGRS DEVELOP EXPERTISE IN SOLVING PROBLEMS
  UNIQUE TO LOCATION
• MGRS KNOW CLIENTS/CUSTOMERS PROBLEMS
• SUITED TO MULTINATIONAL FIRMS
• EQUIPMENT NEEDED IS AT EACH GEOGRAPHIC LOCATION

• POTENTIAL PROBLEMS
• FUNCTIONS ARE DUPLICATED AT EACH LOCATION
• POTENTIAL CONFLICT BETWEEN LOCAL OBJECTIVES
  CORPORATE
• POLICIES TO ENSURE UNIFORMITY AT LOCATIONS

42
PRINCIPLES OF DELEGATION
6.30

• ESTABLISH GOALS AND STANDARDS
• DEFINE AUTHORITY AND RESPONSIBILITY
• INVOLVE SUBORDINATES
• REQUIRE COMPLETED WORK
• PROVIDE TRAINING
• ESTABLISH ADEQUATE CONTROLS

43
6.31
DECENTRALIZATION OF AUTHORITY

• ADVANTAGES
• FACILITATES MANAGEMENT DEVELOPMENT
• FACILITATES EVALUATION FOR PROMOTION
• GREATER CREATIVITY INNOVATION
• INCREASES HIGHER ORDER NEED FULFILLMENT
• IMPLEMENTATION OF DECISIONS FACILITATED
• FREES UPPER MANAGEMENT FOR MORE IMPORTANT TASKS

• DISADVANTAGES
• COST OF TRAINING
• UPPER LEVELS LOSE CONTROL
• SOMETIMES LOW COOPERATION
• GREATER CONSUMPTION OF TIME INITIALLY

44
6.33
MATRIX STRUCTURE

• ADVANTAGES/STRENGTHS
• ACHIEVES CROSS FUNCTIONAL COORDINATION
• FLEXIBLE SHARING OF HUMAN RESOURCES
• EMPLOYEES LEARN NEW SKILLS RELEVANT TO OTHER
  AREAS
• WORKS WELL IN SMALL MEDIUM SIZED FIRMS WITH
  MULTIPLE PRODUCTS/PROJECTS

• POTENTIAL PROBLEMS
• TWO BOSSES - POTENTIAL CONFLICT
• REQUIRES STRONGER INTERPERSONAL SKILLS
• REQUIRES ORGANIC RATHER THAN MECHANISTIC SYSTEM
• REQUIRES MGRS TO MAINTAIN BALANCE BETWEEN
  FUNCTIONAL PRODUCT INTERESTS

45
6.37
EVOLUTION TO MATRIX
HIGH
MATRIX
PROJECT MGR.
PERMANENT X-FUNCTIONAL TEAMS
DEGREE OF INTEGRATION REQUIRED
TEMPORARY X-FUNCTIONAL TEAMS
LIAISON ROLES
DIRECT CONTACT
FORMALIZED PROCEDURES
LOW
HIERARCHY
LOW
HIGH
CUMULATIVE INFORMATION CAPACITY
46
THREE TYPES OF CONTROL
7.1
47
THE CONTROL PROCESS
7.2

• Establish the standard of performance or goals
  against which performance is evaluated.
• Measure actual performance.
• Compare actual performance to standards of
  performance.
• Evaluate results and initiate corrective action.

48
CHARACTERISTICS OF EFFECTIVE CONTROLS
7.7

• LINKAGE TO DESIRED RESULTS
• OBJECTIVITY
• COMPLETENESS
• TIMELINESS
• ACCEPTABILITY
• COST EFFECTIVENESS

49
FINANCIAL RATIOS PROFIT RATIOS
7.8
50
FINANCIAL RATIOS LIQUIDITY RATIOS
7.9
51
FINACIAL RATIOS LEVERAGE RATIOS
7.10
52
FINANCIAL RATIOS ACTIVITY RATIOS
7.12
53
MANAGEMENT BY OBJECTIVES
7.14

• PROCESS
• Managers provide subordinates with framework for
  objectives
• Subordinates propose objectives
• Joint goal setting
• Determine measures of achievement
• Formulate action plans
• Conduct quarterly informal reviews
• Annual performance appraisal

54
7.15
PURPOSES OF MBO

• CLARIFY EMPLOYEE JOB REQUIREMENTS
  RESPONSIBILITIES
• DIRECTS WORK ACTIVITIES TOWARD ORG. GOALS
• IMPROVES MGT-SUBORDINATE COMMUNICATION
• FACILITATES OBJECTIVE EVALUATION OF PERFORMANCE
• STIMULATES EMPLOYEE MOTIVATION
• INCREASES EMPLOYEE COMMITMENT TO GOALS THROUGH
  PARTICIPATION

55
7.16
POTENTIAL PROBLEMS WITH MBO

• PERFORMANCE NOT EASILY MEASURED IN SOME JOBS
• NEGLECT ASPECTS OF JOB THAT ARE NOT EASILY
  QUANTIFIABLE
• NON-ACCEPTANCE OF GOALS BY SUBORDINATES
• PROCEDURES CAN BE TIME CONSUMING
• AUTHORITARIAN ADMINISTRATION WITH ILLUSORY
  PARTICIPATION
• FAILURE TO INTEGRATE WITH REWARD SYSTEM

56
7.19

• SOURCES OF RESISTANCE TO CHANGE
• FEAR
• VESTED INTERESTS
• MISUNDERSTANDING
• DIFFERING ASSESSMENTS
• LIMITED RESOURCES
• INTERORGANIZATIONAL AGREEMENTS

• REDUCING RESISTANCE TO CHANGE
• EDUCATION
• PARTICIPATION
• NEGOTIATION
• COOPTATION

57
MASLOWS NEED HIERARCHY
8.3
SELF ACTUALIZATION ESTEEM LOVE
BELONGING SECURITY PHYSIOLOGICAL
58
8.7
TWO FACTOR THEORY
DISSATISFIERS
MOTIVATORS
SALARY JOB SECURITY WORKING CONDITIONS CO.
POLICIES QUAL. TECH SUPERVISION QUAL. INTERPERS.
RELATIONS RELATIONSHIP WITH SUPERVISOR
ACHIEVEMENT RECOGNITION RESPONSIBILITY ADVANCEMENT
THE WORK ITSELF OPP. FOR GROWTH
59
CHARACTERISTICS OF HIGH ACHIEVERS
8.13

• LIKE TO ASSUME RESPONSIBILITY FOR SOLVING
  PROBLEMS
• TEND TO SET MODERATE GOALS
• TEND TO TAKE CALCULATED RISKS
• DESIRE CONCRETE PERIODIC FEEDBACK ON PERFORMANCE

60
8.15
EXPECTANCY THEORY
PERF-OUTCOME EXPECTANCY
INSTRUMENTALITY
OUTCOME D
EFFORT-PERF EXPECTANCY
OUTCOME A
OUTCOME E
EFFORT
PERFORMANCE
OUTCOME B
OUTCOME C
61
8.25
EQUITY THEORY
INPUTS EFFORT, TRAINING, EDUCATION,
SENIORITY, ETC.


OUTCOMES SALARY, BENEFITS, INCENTIVE PAY, ETC.
Op
Or
Ip
Ir
EQUITY
PERCEIVED EQUIVALENT
INPUT/OUTCOME RATIOS WITH A REFERENT
62
8.28
POTENTIAL OUTCOMES FOR UNDERREWARD
Op
Or
lt
Ir
Ip
DECREASED EFFORT ATTEMPT TO INCREASE
OUTCOMES COGNITIVE DISTORTION OF I O QUIT,
TRANSFER, ABSENTEEISM ATTEMPT TO ALTER REFERENTS
INPUTS IGNORE SITUATION
63
REINFORCEMENT THEORY GENERAL PRINCIPLES
8.31

• NOT ALL REWARDS ARE REINFORCERS
• LAW OF CONTINGENT REINFORCEMENT
• LAW OF IMMEDIATE REINFORCEMENT
• LAW OF REINFORCEMENT SIZE
• LAW OF REINFORCEMENT DEPRIVATION
• SHAPING
• EXTINCTION

64
GUIDELINES FOR USING REINFORCEMENT PRINCIPLES
8.33

• DONT REWARD ALL EMPLOYEES EQUALLY
• FAILURE TO RESPOND CAN ALSO MODIFY BEHAVIOR
• TELL EMPLOYEES WHAT THEY CAN DO TO RECEIVE
  INCENTIVES
• TELL EMPLOYEES WHAT THEY ARE DOING WRONG
• DO NOT PUNISH IN FRONT OF OTHERS

65
TYPES OF GROUPS AND TEAMS
9.1

• TOP MANAGEMENT TEAMS
• RD TEAMS
• DEPARTMENT, UNIT, COMMAND GROUP
• TASK FORCES
• SELF MANAGED WORK TEAMS
• VIRTUAL TEAMS
• FRIENDSHIP GROUPS
• INTEREST GROUPS

66
9.2
STAGES OF GROUP DEVELOPMENT
GROUP MATURITY (EFFICIENCY EFFECTIVENESS)
ADJOURINNG
PERFORMING
NORMING
STORMING
FORMING
TIME
67
TYPES OF TASK INTERDEPENDENCE
9.3

• POOLED INTERDEPENDENCE
• SEQUENTIAL INTERDEPENDENCE
• RECIPROCAL INTERDEPENDENCE

68
9.5
GROUP NORMS
c.
APPROVAL
b.
a.
INDIFFERENCE
d.
DISAPPROVAL
a. Intensity b. Range of Tolerable
Behavior c. Point of Maximum Return d. Crystalliza
tion
69
Level of group performance
HIGH
LOW
Balance of conformity/deviance in a group
Low conformity/ high deviance
Moderate conformity/ moderate deviance
High conformity/ low deviance
Too much deviance and lack of conformity result
in low performance because the group cant
control its members behavior.
Good balance results in high performance.
Too much conformity and a lack of deviance result
in low performance because the group fails
to change dysfunctional norms.
70
CONSEQUENCE OF GROUP COHESIVENESS
9.7

• LEVEL OF PARTICIPATION WITHIN A GROUP
• LEVEL OF CONFORMITY TO GROUP NORMS
• EMPHASIS ON GROUP GOAL ACCOMPLISHMENT

71
FACTORS INFLUENCING GROUP COHESIVENESS
9.8

• GROUP SIZE
• EFFECTIVELY MANAGED DIVERSITY
• GROUP IDENTITY AND HEALTHY COMPETITION
• SUCCESS

72
REDUCING SOCIAL LOAFING IN GROUPS
9.9

• Make individual contributions to a group
  identifiable. (Accountability)
• Emphasize the valuable contributions of
  individual members. (Incentive plans)
• Keep group size at an appropriate level. (Split
  the group)
• Disciplinary action for weak performers.
• Change supervisors when necessary.

73
9.11
MAJOR TYPES OF LEADERSHIP BEHAVIOR IN DECISION
GROUPS
TASK-ORIENTED BEHAVIOR 1. INITIATING-STRUCTURE 2.
STIMULATING COMMUNICATION 3. CLARIFYING
COMMUNICATION 4. SUMMARIZING 5. CONSENSUS
TESTING GROUP-MAINTENANCE BEHAVIOR 1. GATEKEEPING
2. HARMONIZING 3. SUPPORTING 4. STANDARD
SETTING 5. PROCESS ANALYZING
SPECIFIC OBJECTIVE GUIDE AND SEQUENCE
DISCUSSION INCREASE INFORMATION EXCHANGE INCREASE
COMPREHENSION CHECK UNDERSTANDING MONITOR
PROGRESS CHECK ON AGREEMENT SPECIFIC
OBJECTIVE INCREASE AND EQUALIZE
PARTICIPATION REDUCE TENSION AND
HOSTILITY PREVENT WITHDRAWAL REGULATE
BEHAVIOR DISCOVER AND RESOLVE PROCESS PROBLEMS
74
BASES OF POWER
10.1

• COERCIVE POWER
• REWARD POWER
• LEGITIMATE POWER
• REFERENT POWER
• EXPERT POWER
• REPRESENTATIVE POWER

75
10.2
BASES OF POWER
TYPES OF POWER USED BY MGR
LIKELY RESPONSE FROM SUBORDINATE
EXPERT REFERENT REWARD LEGITIMATE COERCIVE
COMMITMENT
COMPLIANCE
RESISTANCE
76
10.5
INITIATING STRUCTURE

• SETS STANDARDS FOR PERFORMANCE
• EMPHASIZES MEETING DEADLINES
• EFFECTIVELY SCHEDULES WORK
• PRESSURES WEAKER PERFORMERS TO INCREASE OUTPUT
• PROVIDES NEGATIVE FEEDBACK WHEN WORK QUALITY IS
  POOR
• SEES THAT A GROUP MEMBER IS REWARDED FOR A JOB
  WELL DONE
• LETS GROUP MEMBERS KNOW WHAT IS EXPECTED OF THEM
• INSISTS THAT PEOPLE FOLLOW STANDARD OPERATING
  PROCEDURES
• EMPHASIZES THE QUALITY OF WORK
• SEES TO IT THAT GROUP MEMBERS ARE WORKING UP TO
  THEIR CAPACITY
• SEES TO IT THAT THE WORK AMONG GROUP MEMBERS IS
  EFFECTIVELY COORDINATED
• GIVES ADVANCE NOTICE OF CHANGES
• GIVES SOUND TECHNICAL ADVICE

77
CONSIDERATION
10.7

• EXPRESSES APPRECIATION WHEN A GROUP MEMBER DOES A
  GOOD JOB
• GETS THE APPROVAL OF THE WORK GROUP ON IMPORTANT
  MATTERS BEFORE PROCEEDING
• IS FRIENDLY AND CAN BE EASILY APPROACHED
• SHOWS CONCERN WHEN PEOPLE HAVE PERSONAL PROBLEMS
• IS OPEN TO CHANGING HIS/HER MIND WHEN GROUP
  MEMBERS DISAGREE
• NEVER CRITICIZES PEOPLE IN THE PRESENCE OF OTHERS
• SHOWS ENCOURAGEMENT TO WEAKER PERFORMERS
• STANDS UP FOR PEOPLE IN HIS/HER GROUP EVEN THOUGH
  IT MAY BE UNPOPULAR
• NEVER CHANGES THE DUTIES OF GROUP MEMBERS WITHOUT
  FIRST DISCUSSING IT WITH THEM
• PUTS SUGGESTIONS THAT ARE MADE BY GROUP MEMBERS
  INTO OPERATION
• STRESSES THE IMPORTANCE OF HIGH MORALE IN THE
  GROUP
• DOES PERSONAL FAVORS FOR GROUP MEMBERS
• TREATS SUBORDINATES AS EQUALS
• MAKES SUBORDINATES FEEL AT EASE WHEN TALKING TO
  THEM
• DOES LITTLE THINGS TO MAKE IT PLEASANT TO BE A
  MEMBER OF THE TEAM
• FINDS TIME TO LISTEN TO SUBORDINATES
• LOOKS OUT FOR THE PERSONAL WELFARE/CAREER
  DEVELOPMENT OF INDIVIDUAL GROUP MEMBERS

78
10.8
MANAGERIAL GRID
COUNTRY CLUB STYLE
TEAM STYLE
CONCERN FOR PEOPLE
MIDDLE OF THE ROAD
PRODUCE OR PERISH STYLE
IMPOVERISHED STYLE
CONCERN FOR PRODUCTION
79
10.10
HERSEY BLANCHARDS SITUATIONAL LEADERSHIP MODEL
SUPPORTING III
II SELLING
HIGH
RELATIONSHIP ORIENTATION
IV DELEGATING
TELLING I
?
LOW
LOW
HIGH
TASK ORIENTATION
80
HOUSES PATH-GOAL THEORY (14.7)
10.17

• Find out what outcomes your subordinates are
  trying to obtain from their jobs and the
  organization
• Reward subordinates for high performance and goal
  attainment with the outcomes they desire
• Clarify the paths to goal attainment for
  subordinates, remove any obstacles to high
  performance, and express confidence in
  subordinates capabilities
• Four Types of Leadership behaviors
• Directive behavior (initiating structure)
• Supportive behavior (consideration)
• Participative behavior
• Achievement oriented behavior

81
10.18
FIVE LEVELS OF PARTICIPATION
AI. YOU SOLVE THE PROBLEM OR MAKE THE DECISION
YOURSELF, USING INFORMATION AVAILABLE TO YOU AT
THE TIME. AII. YOU OBTAIN THE NECESSARY
INFORMATION FROM YOUR SUBORDINATES, THEN DECIDE
THE SOLUTION TO THE PROBLEM YOURSELF. YOU MAY
OR MAY NOT TELL YOUR SUBORDINATES WHAT THE
PROBLEM IS IN GETTING THE INFORMATION FROM THEM.
THE ROLE PLAYED BY YOUR SUBORDINATES IN MAKING
THE DECISION IS CLEARLY ONE OF PROVIDING
NECESSARY INFORMATION TO YOU, RATHER THAN
GENERATING OR EVALUATING ALTERNATIVE
SOLUTIONS. CI. YOU SHARE THE PROBLEM WITH THE
RELEVANT SUBORDINATES INDIVIDUALLY, GETTING
THEIR IDEAS AND SUGGESTIONS WITHOUT BRINGING
THEM TOGETHER AS A GROUP. THEN YOU MAKE THE
DECISION, WHICH MAY OR MAY NOT REFLECT YOUR
SUBORDINATES INFLUENCE. CII. YOU SHARE THE
PROBLEM WITH YOUR SUBORDINATES AS A GROUP,
OBTAINING THEIR COLLECTIVE IDEAS AND
SUGGESTIONS. THEN YOU MAKE THE DECISION, WHICH
MAY OR MAY NOT REFLECT YOUR SUBORDINATES
INFLUENCE. GII. YOU SHARE THE PROBLEM WITH YOUR
SUBORDINATES AS A GROUP. TOGETHER YOU GENERATE
AND EVALUATE ALTERNATIVES AND ATTEMPT TO REACH
AGREEMENT (CONSENSUS) ON A SOLUTION. YOUR ROLE
IS MUCH LIKE THAT OF CHAIRMAN. YOU DO NOT TRY
TO INFLUENCE THE GROUP TO ADOPT YOUR SOLUTION,
AND YOU ARE WILLING TO ACCEPT AND IMPLEMENT ANY
SOLUTION WHICH HAS THE SUPPORT OF THE ENTIRE
GROUP.
82
10.19
PARTICIPATIVE MANAGEMENT DECISION TREE QUESTIONS
QUALITY REQUIREMENT How important is the
technical quality of this decision? COMMITMENT
REQUIREMENT How important is subordinate
commitment to the decision? LEADERS
INFORMATION Do you have sufficient information
to make a high-quality decision? PROBLEM
STRUCTURE Is the problem well structured? COMMITM
ENT PROBABILITY If you were to make the decision
by yourself, is it reasonably certain that your
subordinate(s) would be committed to the
decision? GOAL CONGRUENCE Do subordinates share
the organizational goals to be attained in
solving this problem? SUBORDINATE CONFLICT Is
conflict among subordinates over preferred
solutions likely? SUBORDINATE INFORMATION Do
subordinates have sufficient information to make
a high-quality decision?
QR
CR
LI
ST
CP
GC
CO
SI
83
52
10.20
VROOM JAGO DECISION TREE
YES
AI
CP
GC
NO
YES
YES
YES
SI
GII
NO
NO
YES
CII
CP
NO
NO
NO
NO
NO
LI
SI
YES
ST
GC
NO
GII
YES
CO
YES
YES
YES
HIGH
CII
NO
GC
NO
AII
CP
NO
YES
CR
NO
YES
YES
GC
CO
CI
YES
ST
CII
NO
HIGH
LOW
NO
LI
YES
STATE THE PROBLEM
QR
LOW
AI
LOW
CR
YES
HIGH
NO
CP
GII
84
10.24
TRANSFORMATIONAL/CHARISMATIC LEADERSHIP

• REVOLUTIONARY IDEAS - CHANGE STATUS QUO
• PRESENT VISION OF CHANGE (CLEAR VISION OF FUTURE)
• EXTRAORDINARY ACHIEVEMENTS/HEROISM IN PAST
• SPEAK WITH AUTHORITY
• PERSONAL SACRIFICE FOR THE ORGANIZATION
• MUST HAVE CONDUCIVENESS - A NEED FOR CHANGE
• TRANSFORMS FOLLOWERS VALUES
• INSTILL CONFIDENCE IN SUBORDINATES/FOLLOWERS
• FOLLOWERS AFFECTION FOR LEADER
• EMOTIONAL INVOLVEMENT OF FOLLOWERS IN GOALS OR
  MISSION OF ORGANIZATION
• IF GREATER DISCREPANCY BETWEEN STATUS QUO AND
  FUTURE GOAL OR VISION - MORE CHARISMA
• GOAL OR VISION MUST BETTER THEIR LIVES IN SOME
  WAY IT MUST BE FOR THEM
• PROVES NOT PERSONAL INTEREST BY INCURRING GREAT
  PERSONAL RISK OR COST
• DEMONSTRATE CONCERN FOR FOLLOWERS NEEDS RATHER
  THAN OWN. TOTAL COMMITMENT TO THE MISSION
  WITH NO SELF GAIN. THE GREATER THE COST, RISK OR
  SACRIFICE - THE GREATER THE TRUST OF FOLLOWERS.

85
THE ADMINISTRATIVE MODEL AND DECISION MAKING
CONSTRAINTS
11.2

• BOUNDED RATIONALITY
• INCOMPLETE INFORMATION
• RISK AND UNCERTAINTY
• AMBIGUOUS INFORMATION
• TIME CONSTRAINTS
• INFORMATION COSTS
• SATISFICING

86
COGNITIVE BIASES AND DECISION MAKING
11.3

• PRIOR HYPOTHESIS BIAS
• REPRESENTATIVE BIAS
• ILLUSION OF CONTROL
• ESCALATING COMMITMENT

87
THE DECISION MAKING PROCESS
11.6

• RECOGNIZE THE NEED FOR A DECISION
• GENERATE ALTERNATIVES
• ASSESS ALTERNATIVES
• CHOOSE AMONG ALTERNATIVES
• IMPLEMENT THE CHOSEN ALTERNATIVE
• LEARN FROM FEEDBACK

88
11.10
TYPES OF DECISIONS
RISK
TYPE
UNCERTAINTY
EXAMPLES
ROUTINE DECISIONS
LO RISK
SOPS EXPERTS SYSTEMS
CERTAINTY
PROBABILITY BREAKEVEN ANALYSIS PAYOFF MATRIX
DECISION TREES PARETO ANALYSIS
ADAPTIVE DECISIONS
OSBORNES CREATIVITY MODEL CAUSE-EFFECT DIAGRAMS
HI RISK
INNOVATIVE DECISIONS
UNCERTAINTY
89
11.11
UNUSUAL AMBIGUOUS
UNCERTAINTY HI RISK
INNOVATIVE DECISIONS
CANNOT ASSIGN PROBABILITIES
SUBJECTIVE PROBABILITIES
ADAPTIVE DECISIONS
PROBLEM TYPE
ROUTINE DECISIONS
OBJECTIVE PROBABILITIES
CERTAINTY LO RISK
KNOWN WELL DEFINED
SOLUTION TYPES
UNTRIED AMBIGUOUS
90
ADVANTAGES OF GROUP DECISION MAKING
11.21

• POOLED EXPERTISE
• GREATER NUMBER OF APPROACHES TO A
  PROBLEM
• GREATER ACCEPTABILITY
• GREATER COMPREHENSION
• ERROR CORRECTING MECHANISM

91
POTENTIAL PROBLEMS IN GROUPDECISION MAKING
11.23

• TIME CONSUMPTION
• DOMINANT PERSONALITY
• STATUS DIFFERENCES
• INADEQUATE DISCUSSION OF ALTERNATIVES
• GOAL DISPLACEMENT
• RISKY SHIFT
• GROUP THINK

92
11.30
MAJOR TYPES OF LEADERSHIP BEHAVIOR IN DECISION
GROUPS
TASK-ORIENTED BEHAVIOR 1. INITIATING-STRUCTURE 2.
STIMULATING COMMUNICATION 3. CLARIFYING
COMMUNICATION 4. SUMMARIZING 5. CONSENSUS
TESTING GROUP-MAINTENANCE BEHAVIOR 1. GATEKEEPING
2. HARMONIZING 3. SUPPORTING 4. STANDARD
SETTING 5. PROCESS ANALYZING
SPECIFIC OBJECTIVE GUIDE AND SEQUENCE
DISCUSSION INCREASE INFORMATION EXCHANGE INCREASE
COMPREHENSION CHECK UNDERSTANDING MONITOR
PROGRESS CHECK ON AGREEMENT SPECIFIC
OBJECTIVE INCREASE AND EQUALIZE
PARTICIPATION REDUCE TENSION AND
HOSTILITY PREVENT WITHDRAWAL REGULATE
BEHAVIOR DISCOVER AND RESOLVE PROCESS PROBLEMS
93
GROUP CREATIVITY
11.31

• BRAINSTORMING
• NOMINAL GROUP TECHNIQUE
• DELPHI TECHNIQUE

94
Distributive Bargaining
12.1
Party As Aspiration Range
Settlement Range
Party Bs Aspiration Range
Party Bs resistance point
Party As resistance point
Party As target point Buyer
Party Bs target point Seller
Party A Buyer Target Pt. as low as buyer
thinks he/she can go Resistance Pt. the
highest price buyer will agree to
Party B Seller Target Pt. as high as seller
thinks he/she can go Resistance Pt. the lowest
price seller will agree to
95
Comparing Bargaining Approaches
12.2
96
Negotiation Tactics
12.3
97
Effective Negotiating
12.4

• Determine the importance of the outcome for you
• Look forward, not backward
• Separate people from problems
• Adopt a win-win attitude
• Know your best alternative to a negotiated
  agreement
• Focus on interests, not on fixed positions
• Go into the negotiation with objective criteria
• Respond, dont react
• Use a third party

98
TYPES OF CONFLICT IN ORGANIZATIONS
13.1

• INTERPERSONAL CONFLICT
• INTRA GROUP CONFLICT
• INTER GROUP CONFLICT
• INTER ORGANIZATIONAL CONFLICT

99
SOURCES OF CONFLICT
13.2

• Limited Resources
• Differences in Goals
• Miscommunication
• Differing Attitudes, Values and Perceptions
• Style Differences

100
13.3
NEGATIVE CONFLICT DYSFUNCTIONS

• Unresolved anger
• Personality clashes
• Low self confidence
• Opposing views of responsibility
• Problems of efficiency
• Unfinished business

101
13.4
POSITIVE CONFLICT POTENTIAL FUNCTIONS

• Increased involvement
• Increased cohesion
• Increased innovation and creativity
• Positive personal growth and change
• Clarification of key issues
• Values clarification

102
STYLES OF MANAGING CONFLICT
13.5
ASSERTIVE
COLLABORATION
COMPETITION or FORCING
COMPROMISE
ACCOMMODATION
AVOIDANCE
UNASSERTIVE
COOPERATIVE
UNCOOPERATIVE
103
CONFLICT PREVENTION TECHNIQUES
13.9

• Team Building
• Diversity Training
• Open Communication
• Conflict Management Training
• Resource Allocation
• Managing Others Expectations
• Focusing on Others First

104
HRM FUNCTIONS
14.1

• Analysis and design of work
• Recruitment and selection
• Training and development
• Performance appraisal
• Compensation and benefits
• Employee relations
• Personnel policies
• Legal compliance
• Support corporate strategy

105
Human Resource Planning
15.1

• Forecasting the demand for labor
• Determine labor supply
• Determine labor surplus or shortage

106
Options for Reducing a Labor Surplus
15.2

• Downsizing
• Pay reductions
• Demotions
• Transfers
• Work sharing
• Hiring freeze
• Natural attrition
• Early retirement program
• Retraining

107
Options for Avoiding a Labor Shortage
15.3

• Overtime
• Hire temporary employees
• Outsourcing
• Retrained transfers
• Turnover reduction
• New external hires
• Technological innovation

108
Recruitment Sources
15.4

• Internal Sources
• Job postings
• Databases
• Management referrals
• External Sources
• Direct applicants and referrals
• Ads in newspapers trade publications
• Electronic recruiting (Web)
• Public employment agencies
• Private employment agencies
• Universities

109
THE SELECTION PROCESS
16.1

• Screening applications and resumes
• Testing and reviewing work samples
• Interviewing candidates
• Checking references and background
• Selection decision

110
Legal Standards for Selection
16.2

• Civil Rights Act, 1991
• Selection method cannot discriminate
• Prohibits preferential treatment in favor of
  minority groups
• Civil Rights Act, 1964, Title VII
• Equal Employment Opportunity
• Equal Pay Act, 1963
• Age Discrimination in Employment Act, 1967
• Americans with Disabilities Act, 1991
• Pregnancy Discrimination Act, 1978

111
Employment Tests
16.4

• Cognitive ability tests
• Physical ability tests
• Job performance tests work samples
• Drug tests
• Personality tests

112
16.5
PERSONALITY TRAITS

• EXTRAVERSION
• NEGATIVE AFFECTIVITY
• AGREEABLENESS
• CONSCIENTIOUSNESS
• OPENNESS TO EXPERIENCE
• LOCUS OF CONTROL
• SELF-ESTEEM
• NEED FOR ACHIEVEMENT
• NEED FOR AFFILIATION
• NEED FOR POWER

113
Employee Separation
17.1

• Outcome Fairness
• Consistent outcomes
• Knowledge of outcomes
• Outcomes consistent with behavior
• Procedural Justice
• Consistent procedures
• Avoidance of bias
• Accurate information
• Means to correct mistakes
• Representation of all interests
• Ethical standards
• Interactional Justice
• Explanation of decision
• Respectful treatment
• Consideration empathy

114
Legal Requirements in Employee Separation
17.2

• Wrongful discharge
• Discrimination
• Employee privacy
• Notification of layoffs

115
Progressive Discipline
17.3

• Unofficial spoken warning
• Official written warning
• Second written warning plus warning of suspension
• Temporary suspension plus last notice
• Termination

116
17.4
Job Withdrawal Job Dissatisfaction

• Personal disposition
• Dissatisfaction with tasks or roles
• Dissatisfaction with supervisor or coworkers
• Dissatisfaction with pay or benefits

117
17.5
CORRELALTES OF JOB SATISFACTION

• Mentally challenging task
• Equitable rewards
• Supportive working conditions
• Supportive coworkers
• Personality/skills/job fit
• Genetics

118
RESPONSES TO JOB DISSATISFACTION
17.6
Active
Exit
Voice
Constructive
Destructive
Loyalty
Neglect
Passive
119
18.1
TRAINING

• JOB ROTATION/ON-THE-JOB
• PROGRAMMED INSTRUCTION INTERACTIVE MEDIA
• VIDEOS/LECTURE/CLASSROOM
• SIMULATION
• ROLE PLAYING/GROUP EXERCISES
• FORMAL EDUCATION

120
18.4
PERFORMANCE APPRAISAL METHODS

• JOB DIMENSION SCALES
• RANKING
• GRAPHIC RATING SCALES
• BEHAVIORALLY ANCHORED RATING SCALES
• MANAGEMENT BY OBJECTIVES
• ESSAY
• CRITICAL INCIDENT

121
18.5
COMPENSATION ADMINISTRATION

• BASE WAGE
• RANKING
• GRADES
• POINTS

• FINANCIAL INCENTIVES - SUPPLEMENTS TO SALARY
• MERIT INCREASES
• BONUSES
• STOCK OPTIONS
• PERFORMANCE SHARES
• DEFERRED COMPENSATION
• PERQUISITES
• GAINSHARING
• PROFIT SHARING
• PIECEWORK
• COMMISSION

122
Stakeholders and Ethics
19.1

• Stockholders
• Management
• Employees
• Suppliers and distributors
• Customers
• Community and society

123
19.2
RULES FOR ETHICAL DECISION MAKING
UTILITARIAN RULE MORAL RIGHTS RULE JUSTICE
RULE PRACTICAL RULE
124
Sources of an Organizations Code of Ethics
19.4

• Societal ethics
• Professional ethics
• Individual ethics

125
PERSONAL ETHICS
19.6
126
POLITICAL BEHAVIOR ETHICAL OR UNETHICAL?
19.7

• EMPIRE BUILDING
• GARNERING OTHERS IDEAS
• SABOTAGE
• REORGANIZATION
• BUILDING NETWORKS/COALITIONS
• COOPTATION
• EMPLOYING EXPERT POWER UNETHICALLY
• SCAPEGOATING
• DIVERTING ATTENTION
• STALLING
• SPREADING THE RISK
• SILENCE
• INGRATIATION
• FALSIFYING INFORMATION
• PLAYING THE MOUSE

127
19.19
SOCIAL RESPONSIBILITY
LOW SOCIAL RESPONSIBILITY
HIGH SOCIAL RESPONSIBILITY
128
Sources of Diversity in the Workplace
19.26

• Age
• Gender
• Race ethnicity
• Religion
• Capabilities/Disabilities
• Socio-economic background
• Sexual orientation

129
EEO Laws Affecting Diversity and HRM
19.27

• Equal Pay Act, 1963
• Title VII of the Civil Rights Act, 1964
• Age Discrimination in Employment Act, 1967
• Pregnancy Discrimination Act, 1978
• Americans with Disabilities Act, 1990
• Civil Rights Act, 1991
• Family and Medical Leave Act, 1993

130
Managing Diversity Effectively
19.28

• Secure Top Management Commitment
• Increase the Accuracy of Perceptions
• Increase Diversity Awareness
• Increase Diversity Skills
• Encourage Flexibility
• Monitor How Employees are Evaluated
• Monitor Numbers for Minorities
• Empower Employees to Challenge Discrimination
• Reward Managers for Effectively Managing
  Diversity
• Provide Diversity Training
• Encourage Mentoring

131
Eradicating Sexual Harassment
19.29

• Develop a policy endorsed by top management
• Use a fair complaint procedure to investigate
  charges
• Take corrective action as soon as possible
• Provide sexual harassment training

132
20.2
PRODUCT LIFE CYCLE
SALES VOLUME
INTRO
GROWTH
MATURITY
DECLINE
TERMINATION
TIME
133
THE RELATIONSHIP BETWEEN TECHNOLOGICAL CHANGE AND
LENGTH OF THE PRODUCT LIFE CYCLE
20.3
Rate of Technological Change
Length of Product Life Cycles
134
20.4
FACTORS FACILITATING INNOVATION

• LONG TIME HORIZON
• MULTIPLE COMPETING APPROACHES
• HIGH LEVEL OF USER INTERACTION IN DEVELOPMENT
• MATRIX ONLY WHEN NECESSITATED
• SMALLER DIVISIONS/SMALLER UNITS
• SUPPORT RISK TAKING
• FIRM OPERATING LIKE A VENTURE CAPITALIST
• VARIETY OF FUNDING CHANNELS
• SUPPORT PRODUCT CHAMPIONS (INTERNAL
  ENTREPRENEURS)
• HANDS ON TOP MANAGEMENT
• FLEXIBILITY AND FLUIDITY
• REWARD SYSTEMS WHICH SUPPORT INNOVATION
• AUTONOMY/DECENTRALIZATION
• COMMUNICATION OUTSIDE FORMAL CHANNELS
• BUSINESS FOCUS