MGT 291 Exam 1 Miami University

Costs of Losing Human Capital (Turnover)

Costs of Losing Human Capital (Turnover)

1. Loss of skills/experience
2. Drop in efficiency/learning curve
3. Unstable Environment
4. Selection
5. Training
6. Bad Reputation
7. Loss of Knowledge to Competitors
8. Customer Satisfaction Issues
9. Financial Results

Why be on the top 100 list?

1. Retention
2. Employer of Choice
3. Good Reputation
4. Customer/Supplier Confidence

Employee Value Proposisition

What the employee provides to attract and retain employees

Max Weber

The Father of Bureaucracy; known for "top-down" administrative principle
-division of labor
-chain of command
-centralized decision making
-lots of rules and regulations

Hawthorne Studies

a series of studies conducted in the 1920s with the purpose of continuing Frederick Taylor's work; lead to more research on human relations at work

Hawthorne Effect

people act differently when they know they are being watched

Theory X

1. people are lazy and dislike work
2. need supervision and direction
3. avoid responsibilities

Theory Y

1. work is natural
2. people want to work under the right conditions
3. people can accept responsibility
4. people have creativity and imagination

What measures the success & effectiveness of people management?

- financial results
- retention rate
- employee satisfaction/high morale
- # of applicants

Diversity

the variety of observable and unobservable similarities and differences among people

Surface-Level Diversity

diversity that can be seen directly (race, gender)

Deep-Level Diversity

personality traits that cannot be seen directly (background experience, goals, skills, etc.)

Projected Diversity Trends in the U.S. by 2050

- average population will be older
- proportion of whites will decrease
- proportion of blacks, asians, and hispanics will increase
- talent shortages will increase
- minorities encountering "glass ceiling"

Title VII of the Civil Rights Act

prohibits discrimination on basis of race, color, religion, national origin, or sex (equal employment opportunity)

Age Discrimination in Employment Act (ADEA)

prohibits discrimination in employees over 40 years old; restricts mandatory requirements

Americans with Disabilities Act

employers are required to make reasonable accommodations for potential employees, and cannot discriminate because of disabilities

Affirmative Action

intentionally seeking and hiring qualified employees from racial, sexual, and ethnic groups that are underrepresented in the organization; made possible by Pres. Lyndon B. Johnson's executive order

Barriers to Inclusion

- "like me" bias
- stereotypes
- prejudice
- perceived threat of loss
- ethnocentrism
- unequal access to organizational networks

Four Pillars of Diversity

1. demonstrate leadership support
2. engage employees as partners
3. integrate diversity with management practices
4. link diversity goals to business goals

ASA Framework

1. attraction- attracts employees
2. selection- hire based on fit
3. attrition- if fit is wrong, employees are fired or quit the job

Strong Situation

fixed processes with a clear way of doing work

Weak Situation

open-ended, flexible work processes

Big 5 Personality Traits

1. Conscientiousness
2. Agreeableness
3. Openness
4. Extraversion
5. Neuroticism

Internal Locus of Control

Looks inward for indicators of success or failure; higher motivations, salaries, job satisfaction

External Locus of Control

Attributes successes or failures to outside circumstances

Self-Efficacy

Personal sense of competence deriving from experience, persuasion/motivation, behavior, and physical or emotional state

Emotional Intelligence

Personal Competence:
-self-awareness
-self-motivation
-self-management
Social Competence:
-Empathy
-Social Skills

Fogg Behavior Model

Trigger - Awareness
Ability -
Motivation

If any one of these things are missing, change will not occur

status quo

The existing state of affairs - the enemy of change

Building personal connections requires

Vulnerability
Honesty
Authenticity
Humility

Building professional connections requires

Knowledge
Skill
Capability

Dr. Paul McLean

National Institutes of Mental Health

Devised 3 layer brain theory
-Neocortex
-Limbic System
-The root brain

Neocortex

"thinking brain"
- critical for logic & analysis, rational thought,
language,
skepticism, & judgment

limic system

"feeling brain"
- critical for memory, sociability, feelings/emotions,
trust, visualization

The root brain

"instinctive brain"
- critical for breathing, hunger/thirst, balance,
avoidance, survival, safety

Oxytocin

Trust chemical

recent studies have investigated role in
various behaviors, including arousal, social recognition, pair bonding, anxiety, and
maternal behaviors. It is sometimes referred to as the "bonding hormone"

cortozol

(the stress chemical)
- known more formally as hydrocortisone. Stress isn't the
only reason that cortisol is secreted into the bloodstream, it is termed "the stress
hormone" because it's also secreted in higher levels during the body's 'fight or flight'
response to stress. It aids in focus but can also lead to distress

Adam Smith

The invisible hand -

The invisible hand describes the unintended social benefits of an individual's self-interested actions, a concept that was first introduced by Adam Smith in The Theory of Moral Sentiments, written in 1759, invoking it in reference to income distribution

Frank and Lillian Gilbreth

Employed motion study to simplify work and improve productivity,

Scientific Management

a management theory using efficiency experts to examine each work operations and find ways to minimize the time needed to complete it


Replace rule -of-thumb work methods with methods based on scientifically
studying the tasks using time-and -motion studies.

Scientifically select, train, and develop all workers rather than leaving
them to passively train themselves.

Managers provide detailed instructions and supervision to workers to ensure
that they are following the scientifically developed methods.

Divide work nearly equally between workers and managers. Managers should apply scientific management principles to planning the work, and workers should actually perform the tasks.

Human Relations Movement

o
Viewed organizations as cooperative systems
o
Treated workers' orientations, values, and feelings as important parts of organizational dynamics and performance
o
Created a new era of more humane, employee-
centered management and highlighted
the importance of people to organizational success
o
But was hampered by unsound research methods

Organizational Behavior Framework

Individual
Leadership
Groups and teams
Organizational characteristics
Environment

Sources of Competitive Advantage

innovation, cost, service, quality, branding, distribution, speed, convenience, first to market

Types of business strategies

•
Cost Leadership emphasizes operational excellence (Walmart)
•
Differentiation emphasizes product innovation (Volvo -
safety)
•
Specialization emphasizes customer loyalty (Starbucks)
•
Growth

Geert Hofstede's Research

o
Attitudes and behaviors differ significantly because of values and beliefs that characterize different countries
o
Dutch researcher that studied workers and managers in 60 countries

Hofstede's Categories

Individualism

Collectivism (tight social frameworks) - In a collectivist society, however, people are supposed to be loyal to the group to which they belong, and, in exchange, the group will defend their interests. The group itself is normally larger, and people take responsibility for one another's well-being.

Power Distance - Relationship between different levels of structural relations

Uncertainty Avoidance (stability) - In societies that score highly for Uncertainty Avoidance, people attempt to make life as predictable and controllable as possible. If they find that they can't control their own lives, they may be tempted to stop trying.
Hofstede argues that you may find people in high-scoring countries who are prepared to engage in risky behavior, precisely because it reduces ambiguities, or in order to avoid failure.

Masculinity -

Long-term Orientation / short Countries with a long-term orientation tend to be pragmatic, modest, and more thrifty. In short-term oriented countries, people tend to place more emphasis on principles, consistency and truth, and are typically religious and nationalistic.

tiered workforce

Exists when one group of an organization's workforce has a contractual arrangement with the organization objectively different from another group performing the same jobs

person-job fit

the extent to which a person's contributions and the organization's inducements match one another

person-group fit

the match between an individual and his or her work group, including the supervisor

person-organization fit

reflects the extent to which your personality and values match the climate and culture in an organization

Realistic job previews (RJPs)
or Job Descriptions

Give realistic picture of company to secure trust and deter turnover

Gardner's Theory of Multiple Intelligences

linguistic, logical
-mathematical, musical, bodily-kinesthetic, spatial
-visual, interpersonal, intrapersonal

Gallup

studies human nature and behavior and specializes in management, economics, psychology and sociology, discovered 70% of employees are unmovitated

terminal values

desirable end-states of existence; the goals a person would like to achieve during his or her lifetime

instrumental value

something that has worth as an instrument or a tool that can be used to accomplish a goal, preferred means of achieving terminal values

affectivity

a general tendency of an individual to experience a particular mood or to react to things in a particular way or with certain emotions

Positive Affectivity
- upbeat and optimistic, overall sense of well-
being, seeing things in a positive light

Negative Affectivity
- downbeat and pessimistic, seeing things in a negative way,
seeming to be in a bad mood

Perception

o
Categorization
- The tendency to put things into groups and then exaggerate the
similarities within and the differences among the groups

Halo Effect -
Forming a general impression of something or someone based on a single characteristic

o
Contrast Effect -
Evaluating someone by comparing them with recently-encountered
people

o
Projection
- Seeing one's own characteristics in others
o
First Impression Bias -
The inability to let go of first impressions, particularly negative
ones

Trust

One survey of 500 business professionals found that having a trusting
relationship with one's manager was the main factor in deciding to stay

Kotter's Distinctions between Management and Leadership

Management
- planning and budgeting
- Organization and staffing
- Controlling and Problem solving

Outcome
-predictability and order (transactional)

Leadership
-Establishing direction
- Aligning people
- Motivation and inspiring

Outcome

Produces change (transformational)

Behavior traits of leaders

emotional intelligence,
drive,
motivation,
honesty and integrity,
self-confidence,
cognitive ability,
knowledge of business,
charisma

Job-centered behavior

principal concerns were with achieving production efficiency, keeping costs down, and meeting schedules

Employee-centered behavior

managers paid more attention to employee satisfaction and making work groups cohesive

Impoverished Management

exertion of minimum effort to get required work done is appropriate to sustain organization membership

Country Club Management

high concern for people, low concern for production

Authority-Compliance Management

low concern for people, high concern for production

Team Management

high concern for people, high concern for production

Leadership Continuum Model

determine which of the 7 styles to select, based on the use of boss-centered versus subordinate-centered leadership, to meet the situation (boss, subordinates, situation/time) to maximize performance