BU288 Final Exam

Organizational Culture

The shared beliefs, value, and assumptions that exist in an organization that determine the norms and patterns of behaviour. Tends to be stable over time.

Sub-Cultures

Smaller cultures that develop within a larger organizational culture that is based on differences in training, occupation, or departmental goals.

Strong Culture

Organizations with intense and pervasive beliefs, values, and assumptions that are strongly supported by the majority of members. Provides great consensus among employees.

Weak Culture

Organizations whose beliefs, values, and assumptions are less strongly ingrained or shared among employees.

3 Assets of Strong Culture (CCF)

1) Coordination
2) Conflict Resolution
3) Financial Success

3 Liabilities of Strong Culture (RCP)

1) Resistance to Change
2) Culture Clash
3) Pathology

Founder's Role in Organizational Culture

Founder has a strong imprint on company culture that is kept alive by future generations and provides continuous reinforcement of the firm's core values.

Socialization and Organizational Culture

Socialization is the primary means by which individuals can learn the culture's beliefs, values and assumptions.

7 Steps of Socialization (SDTREOR)

1) Selecting Employees
2) Debasement and Hazing
3) Training
4) Reward and Promotion
5) Expose to Core Culture
6) Organizational Folklore
7) Role Models

3 Elements of Culture (SRS)

1) Symbols
2) Rituals
3) Stories

Leadership

The influence that particular individuals exert on the goal achievement of others in an organizational context.

Strategic Leadership

Leadership that involves the ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.

Consideration

The extent to which a leader is approachable and shoes personal concern and respect for employees. Strongly linked to follower satisfaction, leader satisfaction, motivation, and effectiveness.

Initiating Structure

The degree to which a leader concentrates on group goal attainment. Strongly related to leader and group performance.

Leader Reward Behaviour

The leader's use of compliments, tangible benefits, and deserved special treatment. Use of rewards gives employees a clear idea of what is expected of them.

Leader Punishment Behaviour

The leader's use of reprimands, unfavourable task assignment, and the active withholding of rewards. Random or unprovoked punishment will result in negative reactions and dissatisfaction.

Fiedler's Contingency Theory

The association between leadership orientation and group effectiveness is contingent on how favourable the situation is for exerting influence.

Situation Favourableness (LTP)

The "contingency" part of Feidler's Theory. Factors that lead to situational favourableness:
1) Leader-member relations (better relations = greater influence)
2) Task structure (more structure = greater influence)
3) Position power (more authority = greater influence)

Cognitive Resource Theory

Focuses on the conditions in which a leader's cognitive resources (intelligence, expertise, experience) contribute to effective leadership)

House's Path-Goal Theory (DSPA)

Concerned with the situations under which various leader behaviours are most effective.

Directive Behaviour

Schedules work, maintains performance standards. (Initiating Structure)

Supportive Behaviour

Friendly, approachable, pleasant interpersonal relationships. (Consideration)

Participative Behaviour

Consults with employees about work-related matters.

Achievement-Oriented Behaviours

Encourages employees to exert high effort and strive for high level of goal accomplishment.

2 Classes of Situation Factors {House}

1) Employee Characteristics - different employees prefer different leadership styles
2) Environmental Factors - Effectiveness of leadership depends on the work environment

Participative Leadership

Involve employees in work-related decisions resulting in increased motivation, enhancement of quality and increase in acceptance of decisions. Problems are the need for time and energy, loss of power and influence, and lack of receptivity or knowledge.

Vroom & Jago's Situational Model of Participation

Recognizes that there is various degrees of participation that a leader can exhibit.

Leader-Member Exchange Theory

Focuses on the quality of the relationship that developed between a leader and an employee. Each relationship will be unique and will differ in terms of quality.

Transactional Leadership

Leadership based on straightforward exchange between leader and followers. Involves contingent reward behaviour. Leader clarifies expectations and establishes the reward for meeting them.

Transformational Leadership

Leadership that provides followers with a new vision that instills true commitment. Leader decisively changes the beliefs and attitudes of followers to correspond to the new vision and motivates them to achieve performance beyond expectations.

4 Key Dimensions of Transformational Leadership (IIIC)

1) Intellectual Stimulation
2) Individualized Consideration
3) Inspirational Motivation
4) Charisma

Intellectual Stimulation {Transformational Leadership}

Contributes the new vision aspect of transformational leadership. Leader challenges assumptions, takes risks, and solicits followers' ideas.

Individualized Consideration {Transformational Leadership}

Treats employees as distinct individuals and shows concern for needs and personal development. Serves as a mentor or coach when appropriate.

Inspirational Motivation {Transformational Leadership}

Involves communication visions that are appealing and inspiring to followers. A strong vision for the future based on values and ideals that stimulate enthusiasm, challenge followers with high standards, and communicates optimism.

Charisma {Transformational Leadership}

The ability to command strong loyalty and devotion from followers and have the potential for strong influence among them.

Ethical Leadership

The demonstration of norms and appropriate conduct through actions, interpersonal relationship and the promotion of such behaviour to followers. Leaders have a strong commitment to ethics and are willing to do small, every-day things that help reinforce the importance of good ethics.

Authentic Leadership

A positive form of leadership that involves being true to oneself. Authentic leaders know and act upon their true values, beliefs and strengths and encourage others to do the same.

4 Dimensions of Authentic Leadership (SRBI)

1) Self-Awareness
2) Relational Transparency
3) Balanced Processing
4) Internalized Moral Perspective

Cultural Leadership and Implicit Leadership Theory

States that individuals hold a set of beliefs about the kinds of attributes, characteristics, skills and behaviours that contribute to or impede outstanding leadership.

Global Leadership

A set of leadership capabilities to function effectively in different cultures and the ability to cross social, economic, and political borders. Ability to influence people with a different background than the leader.

4 Characteristics of Global Leadership (IPDS)

1) Inquisitiveness
2) Personal Character (emotional connection, integrity)
3) Duality (balance local and global tensions and uncertainty)
4) Savvy (Well informed about organizational abilities and international ventures)

Theories of Female Leadership

Women have better social skills. Women avoid autocratic styles because they violate gender stereotypes and leader to negative reactions. More transformational leaders than men. Effective leaders in contemporary (not traditional) organizations.

Glass-Ceiling

An invisible barrier that prevents women from advancing into senior leadership positions in an organizational context.

Barriers Women Face (PRUD)

1) Prejudice
2) Resistance to woman leadership
3) Underinvestment in social capital
4) Demands of family life

Theories of Male Leadership

Mean leaders more transactional leaders and are likely to use laissez-faire leadership.

2 Sources of Pressure to Change (IN/EX)

1) External (stimulate change to increase competitiveness of the business)
2) Internal (Low productivity, conflict, strikes, high absenteeism, turnover)

3 Parts of the Change Process

1) Unfreezing
2) Change
3) Refreezing

Unfreezing {3 parts of change process}

The recognition that some current state of affairs is unsatisfactory.

Change {3 parts of change process}

The implementation of a program or plan to move the organization or its member to a more satisfactory state.

Refreezing {3 parts of change process}

The condition that exists when newly developed behaviours, attitudes or structures being a lasting part of the organization.

Organizational Learning

The process through which an organization acquires, develops, and transfers knowledge throughout the organization.

Learning Organization

An organization that has systems and processes for creating, acquiring and transferring knowledge to modify and change its behaviour to reflect new insights.

4 Dimensions of Learning Organizations (VCLK)

1) Vision and Support
2) Culture
3) Learning systems and dynamics
4) Knowledge management and infrastructure

3 Issues in the Change Process (DRE)

1) Diagnosis
2) Resistance
3) Evaluation and Institutionalization

Resistance {Issues in the Change Process}

Overt or covert failure by organizational members to support a change effort. Resistance can stem from politics, self-interest, lack of trust, strong emotions, difference in assessment of the situation or a resistant organizational culture.

Diagnosis {Issues in the Change Process}

The systematic collection of information relevant to impending organizational change. Becomes an issue when something is wrongly diagnosed.

Evaluation and Institutionalization {Issues in the Change Process}

Must consider variables such as reactions, learning and outcomes when evaluation change.

Communication

The process by which information is exchanged between a sender and a receiver.

Interpersonal Communication

Communication between people.

Effective Communication

Communication whereby the right people receive the right information in a timely manner.

6 Parts of the Communication Model (TETPDU)

1) Thinking
2) Encoding
3) Transmitting
4) Perceiving
5) Decoding
6) Understanding

Communication by Strict Chain of Command Model

Uses lines of authority and formal reporting relationships to transmit a message.

Downward Communication

Information flows from top toward the bottom of organization.

Upward Communication

Information that flows from the bottom toward the top of the organization.

Horizontal Communication

Information flows between departments as a means of coordinating effort.

3 Deficiencies of the Chain of Command Communication Model (IFS)

1) Informal communication will happen
2) Filtering tends to be watered down during transmission
3) Slowness of message transmission

Conflicting Role Demands {Manager-Employee Communication Barriers}

Leadership roles require managers to attend both task and social-emotional functions. Many managers have difficulty balancing these two demands.

Mum Effect {Manager-Employee Communication Barriers}

The tendency to avoid communicating unfavourable news to others.

The Grapevine

An organizations informal communication network. Communicates information by word and does not follow organizational chain of command.

Pros and Cons of Grapevine

Pro = can provide a way to test employee reactions to proposed changes without formal commitment
Con = Becomes an issue when it is a pipeline for rumours.

Rumour

An unverified belief that is in general circulation. Rumours are susceptible to severe distortion.

Jargon

Specialized language used by job holder or members of a particular occupation or organization. Provides and efficient way of communicating with peers.

COMVOC

Common vocabulary

Non-Verbal Communication

The transmission of messages by some other medium besides speech or writing. Can be powerful because they convey the truth.

Body Language

Non-verbal communication through sender's bodily motions, facial expressions, or physical location.

Gender Difference in Communication

Girls see conversations as a way to develop relationships and networks of connection and intimacy.
Boys view conversations as a way for them to achieve status within groups and to maintain independence

Cross-Cultural Communication

Differences in language or non-verbal communication across cultures. You must be sensitive of different cultural norms when communicating.

Computer Mediated Communication

Forms of communication that rely on computer technology to facilitate information exchange. Often gives people a sense of personal detachment from the message.

6 Basics of Effective Communication

1) Take time
2) Be accepting
3) Don't confuse the person with the problem
4) Say what you feel
5) Listen actively
6) Give time and specific feedback

360-Degree Feedback {Organizational Approach to Improving Communication}

Performance appraisal that uses input of supervisors, employees, peers, and clients of the appraised individual.

Employees Surveys and Feedback {Organizational Approach to Improving Communication}

An anonymous questionnaire that enables employees to state their candid opinions and attitudes about an organization and its practices.

Suggestion Systems and Query Systems {Organizational Approach to Improving Communication}

Programs designed to enhance upward communication by soliciting ideas for improved work operations from employees.

Negotiation

A decision making process among interdependent parties who do not share ideal preferences. An attempt to either prevent conflict or to resolve an existing conflict.

Distributive Negotiation

Win-lose negotiation in which a fixed amount of assets is divided between parties.

Threats {Distributive Bargaining Techniques}

Implying that you will punish the other party if he or she does not concede to your position. Has some merit if one party has more power than the other. If power is balance a threat could be seen as crude and unnecessary.

Promises {Distributive Bargaining Techniques}

Pledges that concessions will lead to rewards in the future. Has merit when your side lacks power and anticipates future negotiations.

Firmness vs. Concessions {Distributive Bargaining Techniques}

A series of small concessions early in the negotiation will go unmatched.

Persuasion {Distributive Bargaining Techniques}

A two-pronged attack. One asserts the technical merits of the party's position and the other asserts the fairness of the target position.

4 Distributive Bargaining Techniques (TPFP)

1) Threats
2) Promises
3) Firmness vs. Concessions
4) Persuasion

Integrative Negotiation

Win-win negotiation that assumes that mutual problem solving can enlarge the assets to be divided between parties. (Makes the pie bigger)

5 Integrative Negotiation Techniques (CFCII)

1) Copious Info Exchange
2) Framing Differences as Opportunities
3) Cutting Costs
4) Increasing Resources
5) Introducing Subordinate Goals

Copious Info Exchange {5 Integrative Negotiation Techniques}

At first give away non-critical info to gain trust and ask the other party lots of questions. Use answers and information gained to find and integrative settlement.

Framing Differences as Opportunities {5 Integrative Negotiation Techniques}

Differences can telegraph each parties real interests so use them to find an integrative settlement.

Cutting Costs {5 Integrative Negotiation Techniques}

Integrative solutions are more attractive when they reduce costs for all parties.

Increasing Resources {5 Integrative Negotiation Techniques}

By increasing the resources you grow the fixed pie = more for everyone.

Introducing Subordinate Goals {5 Integrative Negotiation Techniques}

Attractive outcomes that can be achieved only by collaborating.

Mediation

Occurs when a neutral 3rd party helps to facilitate negotiation. Mediator aids in the process or atmosphere of the negation and will help parties get their underlain interests.

Arbitration

Occurs when a 3rd party is given the authority to dictate the terms of settlement in a conflict. Means that the negotiation has broken down and the only solution is distributive allocation.

Power

The capacity to influence others who are in a state of dependance.

5 Bases of Individual Power (LRCRE)

1) Legitimate
2) Reward
3) Coercive
4) Referent
5) Expert
Employees are likely to resist coercive power, comply with reward or legitimate power, and commit to expert or referent power.