Test4 Study Guide

Chapter 8 Culture, Innovation, Change

Managers must:

develop culture
encourage innovation
manage change

Culture

Internally: a set of beliefs/values that guid behavior
Externally: it is a set of signals of what is considered appropriate/inappropriate

Zappos

company that centers on culture; company is based on 10 core values and they do the three big things

Cultural fit

Do you want to be us?
Main reason people leave their job

Culture is organizational

Augusta National; not allowing IBM CEO Ginni Rometty in the golf league because she is a woman

Culture is Corporate

Disney with Mickey: tradition is a big part of their orientation
Culture:
-shapes attitude
-reinforces belief
-directs behaviors
-sets expectations

KPMG Study

found that only 17% of mergers and acquisitions had any added value; 83% failed to produce any value and 50% destroyed shareholder value.

Socialization

The process by which new members learn the culture of a team or organization

Competing Values Framework

CULTURE IS GLOBAL:
-Hierarchal
-Entrepreneurial
-Rational
-Team culture

Heirarchal culture

Authority runs the system
Clear roles
Rules
Emphasis on predictability

Rational culture

Authority serves the goals
Efficiency
Planning
Emphasis on modest change

Entrepreneurial culture

Authority goes with ideas
Flexibility
Change and growth
Emphasis on entrepreneurship

Team culture

Authority is shared
Teamwork
Collaboration
Emphasis on mutual support

Observed Culture

visible part that people SEE:
ex.) dress, office, symbols, and slogans

Core Culture

underlying assumptions and beliefs that shape and guide peoples behavior
ex.) code of conduct or rules

4 elements of observed and core culture

rites/rituals
symbols
stories,
heroes

Heroes

-Big 3 heroes are: employees, leaders, customers
-Benefits: shared knowledge of hero stories; establish/ represent core values
-Example: Disney, Walton (Walmart), Ken Frazier (merck)

Rites/rituals

-Benefits: creates connection between people and organizations, builds morale and engagement, share hands- on experiences
-Example: Pixar and creativity; give employees 10,000 dollars to decorate their offices

Symbols

-Benefits: common understanding of culture; easy to recognize (you and others)
-Example: Nittany Lion; Tony the Tiger

Stories

-Benefits: easily remembered and passed on, instills deeper cultural understanding
Example: Harland Sanders and KFC; Dave Thomas and Wendys

Values Based Management

when they practice, model, and communicate core values

Workplace Sprituality

practices that try to enrich people's lives by bringing meaning to their lives/work

Innovation

-process of translating ideas/inventions into goods/services that create value for which customers are willing to pay
-taking new idea and putting it in practice
-lifeblood of business
3+1 types:
process
product
business model
sustainability

3D Printing

example of innovation; it has benefits (print body parts) and side effects (terrorists could use it); 3D print a gun; must think of ethical consequences

Process Innovation

-Done the most
-Lean principles\= reduction of waste
-Six sigma: process improvement
-Used for reduction in cost, increased turn around, increased output, and better customer satisfaction

Examples of process innovation

-Vending machine, now take credit cards, 20% more revenue; new technology

-Aloisio Summly, condensing text into short stories compatible for phone

-Gulfstream Airlines

Product Innovation

creating new products/ services for customers

Examples of Product Innovation

-Drones used to take pictures; always pros and cons like spying on enemies but the technology can be used against us.
-Kindle

Business Model Innovation

create, deliver, and caputre value

Business Model Examples

Media\= the decline of print
Retail\= online shopping
Education\= online classes
Music\= digital streaming services
Owning to leasing services
D'Aloisio: sold his Summly business model to yahoo
Instagram 3 Problem: beaty, speed, distribution
Uber: app

Sustainability Innovation

reduces carbon footprint of organization

Examples of Sustainabilty Innovation

Toyota: I-Road
TerraCycle: reduces waste and upcycles (Uses garbage material to make new things)

Commercialization

turning new ideas into salable products; selling innovation
Supersoaker: capture value and sell innovation
Post- its; both failed at commericialization at first (post it ad)

5 Organizational Protocols

Strategy: includes innovation (3M Corp's rule that 30% of revenue go to new products)
Culture: values innovation
Structure: supports innovation
Management: supports innovation
Staffing: for creativity of innovation

Change

-personal and organizational
-make the form, nature, content, or future course of something different from what it was or would be

2 Driving Forces of Change

Threats
Opportunity

Moneyball Trailer

manager goes through stages of grief when he changes the way that baseball players are selected; denial, anger, bargaining, depression, acceptance, move on

Two Types of CHange

transformational and incremental

Transformational Change

repositioning
major change
affects entire org
hard to achieve

Incremental Change

day to day process improvements

Impacts of change

fear of unknown
loss of control
disrupted habits
loss of confidence

Burning platform

-You are in a bad situation in which you need change
-IBM was failing, CEO Lou Gerstner "made the jump"
-Changed IBM's cost, culture, and strategy
-More informal and customer focused

Hostess

went bankrupt because of lack of change

Kurt- Lewin Model

changing processes through unfreezing, change, and refreezing

Unfreezing

create need for change; help others realize that change solves problems

Change (Kurt- Lewin)

Implement and manage the process of change

Refreezing

-Stabilize change and scan for problems in the future
-Focus and stabilize
-Link change to positive reinforcement

Change drivers

confidence in ability
risk takers
expect surprises
make things happen
seize opportunities

Status Quo Holders

threatened by change
bothered by uncertainty
prefer predictability
wait for things to happen

Who Moved My Cheese

-Change happens
-Anticipate change
-Monitor change
-Adapt quickly
-Change
-Enjoy change
-Be ready

Force- coercion strategy

-power- bases of legitimacy
-rewards and punishments to make change
-direct forcing and political manuvering

Direct forcing

person takes direct and unilateral action to command change; exercise formal authority (rewards and punishments)

Political manuvering

indirect method to gain advantageover other people to force change; bargaining, alliances, control

Rational Persuasion strategy

using data and rationality to enforce change; works best with expertise

Shared power strategy

collaborative process of identifying values and goals for which support for change will naturally emerge; high commitment but slow.

Resistance to change

view it as feedback; listen to resistance and improve change process; education and communication; participation and involvement, facilitation and support, negotiation, manipulation and cooptation, coercion.

Chapter 9 HR Management

Human Resources

-developing, attracting, and keeping talent
-maintaining quality workforce

Human Capital

economic value of employee skills and knowledge

people are

a cost to reduce
an asset to develop

SHRM

-society for HRM
-governing body for everything HR
-keeping membership up to date on practices, current events, and issues

Strategic HRM

aligns human capital with organizational strategy

Attracting Steps

1.) Assess need and define job
2.) Recruiting strategy and implementation
3.) Candidate selection and offer process
ex. J and J gold program; specific what degrees needed
65% of large companies will ask for internal referral

Career Builder Recruiting

-find qualified candidates
ex.)Resume Flip

5 Selection Methods

in depth interviewing
real time/ simulated work
technical/personality testing
assessment centers
background chacks

Developing Steps

1.) Orientation/socialization
2.) Training/experiences
3.) Coaching/mentoring
4.) Performance management

Orientation/ socialization

do things to get you connected to the culture

Training/experience

experiences needed to move up in company
US Training Spending: $171.5 billion
Avg per employee: $1,228
Avg hrs: 32/employee
top training subjects include managerial, industry specific, business practices

Mentoring/Coaching

Mentoring: assign early career employees as long term proteges of more senior ones

Coaching: assigns early career employee an experienced employee to provide performance advice

Performance Management/ appraisal

-Measures and documents work performance
-Uses developmental tool to enhance work performance
-Feedback is balanced and specific.

Keeping Steps

1.) Compensation and benefits in line with market (motivating people, proper pay)
2.) Clear career path identified
3.) Work life balance focus (Google buses and feeds employees)

Career planning

matching individual career goals; capabilities to opportunity

career development

manageing how a person progresses in career

career path

providing structure, flexibility and direction for a person to achieve greater work responsibility (GE)

Health and Aging Issue

-Everyone retires at same time
-Flexible work arrangements to make people stay longer

independent contractor

Workers hired on temporary contract

contingency worker

supplement full timers with part time hours; easy to hire and fire

Employee Assistance Program

help with personal problems
ex.) stress/alcohol

labor unions

organizations that deal with employers on employee's behalf

labor contracts

specificy rights and obligations of management for wages, hours and work rules

collective bargaining

brings MGMT and union reps together for negotiating

Chapter 13 Team Work

team/teamwork

collection of people who regularly interact to pursue common goal

synergy

when the whole is greater than the sum of individual parts; pools talent

Benefits of teamwork

more resources
improved creativity
greater commitment
better control

Problems with teamwork

personality conflicts
participation
groupthink
definition of quality

Formal Team

officially recognized and supported by organization
ex.) departments, work units, teams, or divisions

Informal team

unofficial and emerge from natural/spontaneous relationships
ex.) support groups, interest groups, friend groups

Roles Managers Play In Teams

supervisors
facilitators
participants
coach

Supervisor

will direct people in what to do; give directions

Facilitator

coordinate teams; make sure that everything works well

Participants

provide some guidance but still works on projects

coach

will provide slight assistance and answer questions; self directed team

Types of teams

committee
cross- functional
project team/task force
self- managing teams
virtual teams

Committee

designed to work on a specific task on a continuing basis

Cross- functional team

combines different functional units to form team (CISCO)

Project team/task force

formed for a specific purpose and break up after completing task

Self- managing teams

self- directed work group

Virtual teams

use technology to conduct meetings; CISCO uses telepresence which allows for communication like you are in the same room.