Module 3 Managing People

What is a Group

Two or more freely interacting individuals who share norms and goals and have a common identity with no task dependency.

Formal Group

A group that is assigned by organizations to accomplish specific goals.

Informal Group

A group where members meet primarily for friendship or a common interest.

Functions of Formal Groups

Organizational and Individual

Roles

A set of expected behaviors for a particular position within a group.

What are the types of roles?

Maintenance and Task

Task Roles

Keep Group on Track

Maintenance Roles

Keep Group Together

Norms

Shared attitudes, opinions, feelings, or actions that guide behavior within a group.

Tuckman’s Model of Group Formation

A model that identifies five stages of group development: Forming, Storming, Norming, Performing, and Adjourning.

Punctuated Equilibrium Model

Groups do not necessarily progress through specific stages, but
rather have periods of stable functioning punctuated by periods of
instability that lead to new norms of functioning.

Forming

“Ice-breaking” stage. Group members uncertain about their role

Storming

Time of testing. Testing leader’s policies and assumptions and how they fit into the power structure.

Norming

Group becomes cohesive: the degree to which members feel part of the collective or “we” of the group.

Performing

Activity is focused on problem solving. Contributors get work done without hampering others

Adjourning

Work is done. Group moves on to other things

Social Identity Theory

The theory that suggests individuals classify themselves and others into social categories providing a shared identity.

What functions does social classification serve

Enables individuals to define or locate themselves in their social environments. Provides collective meaning or a “shared identity”. It cognitively segments and orders the social environment, providing the individual with a systematic means of defining others (in-group – out-group)

Teams

A small number of people with complementary skills committed to a common purpose and hold themselves mutually accountable.

Social Loafing

The tendency for individual effort to decline as group size increases, leading to lower quality work.

How to combat loafing?

Limit Team/Group Size, Assure Equity of Effort, Hold People Accountable, Offer Hybrid Rewards

Team Building

A host of techniques aimed at improving
the internal functioning of work groups that strive for:
– Greater cooperation
– Better communication
– Less dysfunctional conflict

Virtual Teams

Teams that collaborate across time and distance using electronic media to achieve common goals.

Punctuated Equilibrium Model

A model suggesting that groups experience stability interrupted by periods of instability, leading to new norms.

Task Roles

Roles within a group that keep the group focused on its tasks and goals.

Maintenance Roles

Roles that help maintain group cohesion and interpersonal relationships.

Business Strategy

A plan to create value in a particular market.

Value Creation

The process of producing a product or providing a service such that the revenue generated exceeds costs.

What is Porters strategy?

Competitve advantage results from creating value. Value from both low cost and differential.

Low-cost Strategy

Creating value by reducing costs and maintaining profitability by charging less than competitors.

Differentiation Strategy

Creating value by making a product or service perceived as different in the marketplace, allowing for premium pricing.

Strategy Formulation

Developing the business strategy given market and other conditions. Outlines specifically how the firm will create value in a particular market.

Strategy Implementation

Implementing the business practices to execute the desired strategy. This involves all business practices

Resource-based View (RBV)

The theory that firms gain competitive advantage through firm-controlled resources.

VRIO Framework

A tool to evaluate resources based on their Value, Rarity, Inimitability, and Organizational support.

Core Capabilities

Integrated knowledge sets within an organization that differentiate it from competitors and deliver customer value.

What does it mean when the uniqueness of human capital is high but the value of human capital is low?

It results in an alliance employment mode and a collaborative HR system.

What does it mean when the uniqueness of human capital is high and the value of human capital is high?

It results in an internal development employment mode and a commitment HR system.

What does it mean when the uniqueness of human capital is low and the value of human capital is high?

It results in an acquisition employment mode and a market based HR system.

What does it mean when the uniqueness of human capital is low and the value of human capital is low?

It results in an contracting employment mode and a compliance HR system.

Strategic Knowledge Workers

Employees with unique skills directly linked to the company’s strategy, such as top management.

Traditional/Supporting Labor

Employees whose skills are of less strategic value and generally available in the labor market.

Core Employee

Employees with skills to perform a predefined job that are quite valuable to a company, but not particularly unique or difficult to replace.

Complementary/Alliance Partners

Individuals and groups with unique skills, but those skills are not directly related to a company’s core strategy.

The HC/HR Architecture (Lepak & Snell, 1999)

Job families contribute differentially to competitive advantage in relation to job requirements and relation to core competencies.

How to manage human capital?

Strategic Human Resource Management, Identify the Human Capital throughout the firm that is necessary to implement the business strategy, Identify and implement HRM practices to ensure the necessary human capital is in the correct position within the firm.

HRM Systems Perspective

• Functional HRM areas (staffing, training, compensation) must be aligned

• HRM practices need to fit into a coherent system of practices

• The effectiveness of an individual HRM practice depends on the others in the system

• The whole system is greater (or less) than the sum of the parts

Control System

Is a specific combination of HR practices, work structures, and processes that minimizes employee knowledge and skill requirements, and seeks to limit the variability of performance across people

Commitment System

Focus on developing a workforce that identifies with the firm. Enhances attachment

High Performance Work System (HWPS)

• Is a specific combination of HR practices, work structures, and processes that maximizes
  employee knowledge, skill, commitment, and flexibility

• Is composed of many interrelated parts that complement one another to reach the goals of an
  organization, large or small

Value Matrix Approach

• Focus is on tailoring HR strategies to specific job families/groups within the firm

• Firms distinguish jobs in terms of value to firm & uniqueness in labor market

High Performance Work System

• A system of management practices that together foster the development
of a highly
– Knowledgeable, skilled, and able workforce
– Motivated workforce
– A workforce that has opportunity to use its ability and motivation to achieve objectives

What are the Principles of a HPWS?

Egalitarianism and Engagement, Knowledge Development, Shared Information, Performance-Reward Linkage

Egalitarianism and Engagement

Egalitarian work environments eliminate status and power differences and, in the process, increase collaboration and teamwork.

Knowledge Development

Employees in high-performance work systems need to learn in “real time,” on the job, using innovative new approaches to solve novel problem.

Shared Information

A shift away from the mentality of command and control toward one more focused on employee commitment.

Performance-Reward Linkage

It is important to align employee and organizational goals. When rewards are connected to performance, employees will naturally pursue outcomes that are mutually beneficial to themselves and the organization.

What are the two ways to think about individual ethical decision making?

Prescriptive and Descriptive

What is the process for making ethical decisions?

Moral Awareness > Ethical Judgement > Ethical Behavior

Prescriptive approaches

How you “should” make decisions, Offer a set of tools (prescriptions).

Descriptive approaches

Describe, psychologically, how we actually make decisions

Consequentialist theories

Focus on consequences. Derived partly from teleological ethics

Deontological theories

Focus on duties, obligations, principles. Acts themselves are inherently good or bad, regardless of consequences

Virtue Ethics

Focus on integrity and character of the moral actor

Kant’s categorical imperative

What kind of world would it be if everyone behaved this way? Would I want to live in that world?

Rawls’s veil of ignorance

For deciding what’s fair. What would decision be if decision makers knew nothing about their identities or status?

Golden Rule

Treat others as you would have them treat you. Assumption is that both parties are ETHICAL! An ethical person wouldn’t expect someone else to be unethical for him/her.

What is leadership?

A process whereby an individual influences a group of individuals to achieve a common goal.

Trait Approach

Attempts to identify personality characteristics or interpersonal attributes that can be used to differentiate leaders from followers
Early research identified: Intelligence, Dominance, Self-confidence, Level of energy and activity, Task-relevant knowledge

What are the Dark Triad Traits?

NarcissisMachiavellianism, and Psychopathy

Behavioral Styles Approach

Attempts to identify the unique behaviors displayed by effective leaders. Task-oriented, Relationship-oriented, Passive, Transformational

Transformation Leadership

Inspirational Motivation, Idealized Influence, Individualized Consideration, Intellectual Stimulation

Path-Goal Theory

Providing Guidance and Support, Linking rewards to accomplishment, reducing roadblocks.

Takeaways from Fiedler’s Model

Leadership effectiveness goes beyond traits and behaviors. Organizations should attempt to hire or promote people whose leadership styles fit or match the situational demands (situational control). Leaders need to modify their style to fit a situation (if possible)

Situational/Contingency Theories

The effectiveness of a particular style of leader behavior depends on the situation. As situations change, different styles become appropriate

Relationship-Oriented

Primary purpose – enhance employees’ skills and create positive work relationships

Consideration

Leader behavior aimed at nurturing friendly, warm working relationships, encouraging mutual trust and interpersonal respect, and focusing on a concern for group members’ needs and desires.

Empowering

Extent to which a leader creates perceptions of psychological empowerment in others. Reflects employees’ beliefs that they have control over their work

Servant-Leadership

Focuses on increased service to others rather than to oneself

Passive Leadership

Represents a general failure to take responsibility for leading

What sets apart values?

Global, broad, used in various contexts, guiding behavior and decision-making.

What sets apart Attitudes?

More specific, shaped by experiences and beliefs, influencing individual responses.

What are the 3 components of Attitudes?

Affective, cognitive, and behavioral.

Cognitive Dissonance

Psychological discomfort experienced when simultaneously holding two or more conflicting cognitions (ideas, beliefs, values, emotions) or behaviors

Organizational Commitment

The extent to which an individual identifies with an organization and commits to its goals. Increases when personal values match
the values of the organization and its culture.

Employee Engagement

The harnessing of organizational members’ selves to their work roles. Where people employ and express themselves physically, cognitively, and emotionally during role performance (focus, intensity, enthusiasm)

Perceived Organizational Support

Reflects the extent to which employees believe that the organization

Job Satisfaction

An affective or emotional response toward various facets of one’s job. The extent to which an individual likes his or her job