1.

In Search of Excellence: Managing and Leading People in Organizations

What do successful organizations have in common? They provide employment security, engaging in selective hiring, utilizing self-managed teams, decentralized and reduce status differences, training. Self-managed teams and decentralization enable employees to feel accountable and responsible for. The High Cost of Trust: Employees are less engaged in work, less receptive to new ideas and less willing to follow the leader when they sense an inconsistency between what their bosses say and do. As a result, it reduces customer satisfaction, increase employee turnover and reduction in profits. Behavioral Integrity is how closely their managers words and actions are aligned. The Integrity Test - Why maintaining integrity is hard? 1. Credibility is slow to build and quick to dissipate 2. Shift in policies 3. Unclear priorities thus shift to a new management approach but seen as inconsistency 4. Blind spots Managers lie in verbal endorsement but fail to put into actual action

2. Leading and Following

Transformational Leaders change basic values, beliefs and attitudes of their followers and are willing to go above and beyond the call of duty. Characteristic: Charisma and Provide Vision. Reframing Leadership The four frames of leadership 1. Structural Leaders (Architects vs Bureaucrats) Focus on practical details and efficiency, realistic expectations Lack of creativity/ work overload 2. People-Orientated Leaders (Catalysts vs Weaklings) Motivation and encouragement , peoples needs and empowerment. A good fit between people & organizations benefits both: people find satisfaction and organizations mobilize the human talent and energy that they need. 3. Cultural Leaders (Visionaries vs Fanatics) Managing meaning, provide a sense of direction and purpose and faith. 4. Political Leaders (Advocates vs Con Artists) Influence to reach desired results, develop agenda and power base. Benefits of reframing gain clarity, regain balance, generate new options and finding effective strategies. Successful vs. Effective Managers - The 4 managerial activities of real managers Communication
(Exchange of information)

Traditional Management
(Planning, decision making)

HR Management
(Motivate, discipline, staffing)

Networking
(Socialize and interacting)

Successful Managers (Networking) Defined by the speed of promotion Successful managers spend more time and effort socializing and politicking.

Effective managers (Communication & HR Management) (1) High quality standards of performance (2) Job done through people which requires their commitment and satisfaction.

Implications of disparity between Successful and Effective Managers Organizations must move to a performance based appraisal system. Cultural values within the organization is a long run strategy and the value of supporting and rewarding effective performance, not just successful socializing and politicking should be promoted.

3. Social Perception
Self-enhancement bias -overestimate our performance
Self-perception table

Self-effacement bias False consensus error -underestimate our capabilities -think that a particular behavior is common Self-fulfilling prophecy -People automatically behave as if an established stereotype is accurate, which leads to behavior from the other party that makes it come true. Selective perception -Pay selective attention to parts of the environment based on the expectations and beliefs, and ignore events that are against our beliefs.

Stereotypes -Generalize a group to a particular individual in that group

Social-perception table

Internal attribution: Explain someones behavior using the internal characteristic of the actor. External attribution: Explain someones behavior by referring to the situation. Self-serving bias: The tendency to attribute our failure to the situation while attributing our success to internal causes. How can bias in social perception be overcome? 1. Improve observation, implement and follow-through process 2. Avoid rash judgments 3. Stay humble 4. Seek and learn from feedbacks.

4. Engagement in Teams
Punctuated-Equilibrium Model Theory that groups occurs in rapid radical spurts rather than gradual. Teams and good performances are inseperable. Most excecutives advocate teamwork. Teamwork represents a set of values that encourage listening and responding constructively to views expressed by others, giving others the benefit of the doubt, providing support, and recognizing the interests and achievements of others. A teams performance includes both individual results as well as collective work-products. A collective workproduct reflects the joint, real contribution of team members. Working Group Strong, clearly focused leader Individual accountability Groups purpose is the same as the organsations mission Measures the effectiveness indirectly by its influence on others Team Shared leadership roles Individual and mutual accountability Specific team purpose that the team itself delivers
Measures performance of the team directly by assessing collective work products

The importance and benefits of specific team goals: 1. It facilitates clear communication. 2. Maintain their focus on getting the reults, and enable them to measure their progress. 3. Specific goals enable a team to achieve small wins.

Cohesion is the degree of camaraderie within the group. The more cohesive a group is, the more productive it will be and the more rewarding is the experience. Cohesive teams are more satisfied, greater self-confidence & self-esteem -> greater responsibility for the group functioning. Groupthink is the tendency to avoid a critical evaluation of ideas the group favors and is the most common in highly cohesive groups.

Group efficacy refers to a groups perception of its ability to successfully perform well. A groups efficacy is related to its performance. This relationship is higher when task interdependence is high rather than low. Task interdependence refers to the degree that team members are dependent on one another to get information, support or materials from other team members to be effective. Tasks are highly interdependent -> Teams are most effective

3 Essentials to Group Effectiveness: Trust among members, sense of group identity and a sense of group efficacy. In the study of the teams in IDEO, we found that by working to establish norms for emotional awareness and regulation at all 3 levels (Individual, Group and Cross-Boundary levels) of interaction enable teams to build the solid foundation of trust, group identity and group efficacy. As a result, members in the team members will participate and cooperate rather than holding back their opinions and ideas. Hence, it promotes higher level of production, better decisions as well as greater quality of ideas and overall, a higher performance team. Difference between reasons why team member Self-limits and Free-riding Self-limiting behavior (raising a white flag) 1. Presence of someone with expertise 2. Presentation of compelling argument 3. Lack of confidence to contribute 4. An unimportant decision that have no impact on their unit/ individuals well-being A. Choose the right size and mix of team members such that the status differences within the team is reduced B. Set a positive tone at the start of the meeting C. Monitor the teams progress and take immediate action when such behavior occurs D. Encourage self-management by team members E. Provide honest feedback to team members Social Loafing 1. Individuals do not feel included in the team 2. Individual perceive that one will receive neither ones fair share of rewards if the group is successful nor blame if the group fails A. Size of the team. B. Define each members task in front of group C. Make sure individuals feel that they are needed D. Celebrate small wins

5. Personality/ Individual Differences

Person-organization fit refers to the degree to which a persons values, personalities, goals and other characteristics match those of the organization. Benefits: More satisfied and committed to their jobs and tend to stay more committed to the company. Person-job fit refers to which a persons skill, knowledge, abilities match the job demands. Benefits: Satisfaction with the work environment, identification with the organization, job satisfaction, and work behaviors such as job performance.

Big 5 Personality Traits

Openness Being curious, original, intellectual, creative, and open to new ideas Conscientiousness Being organized, systematic, punctual, achievement orientated. Extraversion Being outgoing, talkative, sociable, and enjoying social situations. Agreeableness Being affable, tolerant, sensitive, trusting, kind and warm. Neuroticism Being anxious, irritable, temperamental, and moody.
Flexible and open to learning new things. Highly motivated to learn new skills and do well in training settings. Seek a lot of information and feedback about how they are doing and to build relationship, which leads to quicker adjustment to new jobs. This is one personality trait that uniformly predicts how a persons performance will be. Trait most desired by recruiters, as people who are conscientious tend to have higher levels of motivation to perform. They tend to do well in social situations and are good at social networking. Extraverts actively seek information and feedback and build effective relationship, which helps with their adjustment to new jobs. Might have higher level of absenteeism at work. Tend to help others at work consistently. Less likely to retaliate when other people treat them unfairly. Effective leaders as they create a fair environment They tend to have emotional adjustment problems and experience stress and depression on a habitual basis. People that are high in neuroticism experience relationship difficulties at work. They tend to create an unfair climate at work.

Positive affective people experience positive moods more frequently and tend to be happier at work. Negative affective people are those whom experience more anxiety and nervousness. There tend to be fewer instances of helping and cooperation in the team comprising of mostly negative affective people. Self-monitoring refers to the extent to which a person is able to monitor his or her actions and appearance in social situations. Advantages Sensitive to the types of behaviors the social environment expects from them. They are able to modify their behavior and manage their impressions effectively Social monitors are more successful in their career and enjoy central positions in their social networks. Less accurate when comes to evaluation to avoid confrontations. Tend to have higher levels of stress.

Disadvantages

People with high self-esteem have higher level of confidence and respect themselves. High self-esteem Low self-esteem High self-esteem is related to higher level of satisfaction with ones job and thus higher work performance. Experience high levels of self-doubt. Therefore, provide them with positive feedback and discuss performance incidents.

Locus of control deals with the degree to which people feel accountable for their own behaviors. Proactive Personality refers to a persons inclination to fix what is perceived to be wrong, change the status quo, and use initiative to solve problems. They are valuable asset because they have higher levels of job performance. Also, they are eager to learn and upgrade their skills to stay relevant.

6. Motivation
Maslows Hierarchy of Needs Theory Human beings have needs that are hierarchically ranked. Some needs are basic to human beings and in their absence nothing else matters. Bottom Psychological - Paycheck Safety -Health
insurance
Alderfers ERG Theory

Social -Friendly
environment

Esteem
-Promotion opportunities

Self-Actualization
-challenging work

Top

Existence

Relatedness

Growth

Two Factor Theory (Intrinsic and Extrinsic Motivation) Hygiene Factors (Extrinsic)
Company policies Salary Supervision and relationships

Motivators (Intrinsic)
Achievement and Recognition Growth opportunities Increased responsibility

Job Characteristic Theory Assumptions: 1. Meaningfulness, responsibility, and knowledge-of-results necessary for motivation 2. Work attributes can be analyzed to determine their motivating potential. 3. Work can be redesigned to address motivation requirements VIE Expectancy Theory states that individual motivation to put forth more or less effort is determined by a rational calculation in which individuals evaluate their situation. Expectancy
Will effort lead to high performance?

Instrumentality
Will performance lead to outcomes?

Valence
Do I find the outcome desirable?

-Ensure proper skills and abilities -Environment facilitates performance -Provide encouragement

-Reward employee performance -Inform people in advance of rewards

-Find rewards that are desirable to employees -Ensure that rewards are fair

Equity Theory is determined by comparing ones input outcome ratio with the input-outcome ratio of a referent. Why do people care about procedural justice? 1. Organization values employees 2. Fairness guarantees rewards. Ways to restore equity: 1. Change the objective situation 2. Make mental accommodations 3. Change referent Goal Setting Theory assumed that goals are performance objectives to which individuals commit themselves. S-M-A-R-T Goals: Specific and Measurable, Aggressive, Realistic and Time-Bound Money and Motivation (Need Theory) (Equity Theory) (Expectancy Theory) (Goal Setting) Money essential for meeting basic existence needs A symbol of accomplishment Internal motivation still possible when accompanied by external rewards People compare salaries to judge their input-outcome ration to a referent. Money is perhaps the most flexible currency of reward Money is a motivator when contingent on performance. Enable individuals to accept specific challenging goals, and stay committed Provide clear feedback concerning accomplishment.

7. Workplace Attitudes and Emotions

Factors contributing to job satisfaction? 1. Personality people who are positive affective are more satisfied. 2. Person-environment fit we are more satisfied and committed when our values match the companys value 3. Job characteristic Autonomy at work, use a variety of skills and receive feedback on job. How positive attitudes and emotions might affect employees at work? 1. Happy workers have an inclination to be more engaged at work and want to perform better. 2. Satisfied and committed people are absent less frequently and are likely to stay with a company longer. 3. A satisfied workforce is related to positive firm level outcomes such as customer satisfaction and loyalty, profitability, and safety at workplace. Major predictors of job performance include the general mental ability, how we are treated at work, stress level and work attitude - where we perform better when we are more satisfied with our jobs.

8. Enabling Work Environments I: Structure Imperatives

Centralized companies make important decisions at higher levels of the hierarchy, whereas in decentralized companies, decisions are made and problems are solved at lower levels by employees. Benefits of Centralization: Efficient operations and centralized purchasing operations led to big cost savings. Benefit of decentralization: More authority given to lower level employees resulting in sense of empowerment. Formalized structures are those in which there are many written rules and regulations. Functional Structures Advantages: Clear lines of authority, greater control, specialization affords efficiency. Disadvantages: Inefficiency and coordination challenges as range of business activities increases. Divisional Structures Advantages: Coordination of functional activities within divisions, Leadership development opportunities at divisional level. Disadvantages: Increased operating costs, reduced inter-divisional communication and coordination. Matrix Structure Advantages: Increase communication and cooperation among departments, full access to organization resources. Disadvantages: Dual authority relations and role conflicts (struggle for power) may occur and unclear career structures.

Mechanistic Organizations (Structural) Individual specialization: Hierarchy of authority well-defined Centralized control Formal communication Decisions takes time to be processed

Organic Organizations (Cultural) Joint Specialization Roles are not highly-defined Decentralized control Verbal agreement Fast Decision making

Enabling bureaucracy - Workforce is an asset or a resource to be maximized and leaders in an enabling bureaucracy support and promote norms and standards of professionalism.

Coercive bureaucracy Structure/ Systems People Power Culture

Constrain Expense item to control and direct Top-down position power Mistakes are costly

Enabling bureaucracy
Enable help understand Resource for investment Shared control/ Mutual Support Mistakes to learn

9. Enabling Work Environments II: Organizational Culture and Values

Organizational Socialization is the process by which organizations maintain and pass on values to new organizational members. Benefits of strong organizational culture 1. Strong cultures have competitive advantage 2. Increase in employees performance and lower turnover rate. 3. It is an effective control mechanism for dictating employee behavior instead of rules and regulations. Attraction-Selection-Attrition (ASA): Employees are attracted, Companies select and misfit employees leave New Employee Onboarding (organizational socialization process) is the process through which new employees learn the attitudes, skills and behaviors required to function effectively within an organization. Employees: Seek feedback to gain better understanding if their behavior fits the companys culture. Organization: Formal orientation for integration of new employees. Mentors to guide new employees.

Leadership from a Cultural perspective: Leaders motivate employees through inspiration and act as role models to provide a sense of meaning and direction to the employees. They advocate the values of the company to the employees which is the long run strategy.

10. Social Dynamics of Power and Influence

1. Legitimate Power the power that comes from ones organizational role or position. 2. Coercive Power the ability to take something away from someone or to punish someone. Influences that do not depend on formal authority are: referent power, social exchange and influence processes. Referent power is the power that comes from the personal characteristic of the person. E.g. Charisma If the organization is overly driven by politics, the employees are less committed to the organization, have lower job satisfaction, perform worse and have higher levels of job anxiety. How to minimize overly political behavior? Company leaders can provide equal access to information, model collaborative behavior, and demonstrate that political maneuvering will not be tolerated. In addition, managers are encouraged to provide high levels of feedback to employees which can reduce the perception of politics. Individual antecedents of political behavior include political skill, internal locus of control, high investment in organization and expectation of success. Organizational antecedents include scarcity of resources, role ambiguity, frequent performance evaluations and promotion, and democratic decision making.
Both individual and organizational antecedents lead to political behavior.

11. Leading and Managing Change

Sources of Resistance
-Feelings of uncertainty -Fear of failure -Perceived threat to Self Interest -Do not see the need -Felt Excluded from the change -Perceived loss of Power

Solutions
-Create and communicate the vision for change. (Cultural) -Provide Support by frequently discuss the changes and encourage employees to voice their concerns. (People) -Develop a sense of urgency as people are more likely to accept change when they feel there is a need. (Structural) -Advocate opinion leaders to convince employees (Power) -Incremental for win (small wins)

12. Decision Making and Ethics

Types of decisions: Strategic, tactical & operational decisions. Rational Decision Model: Define Problem -> Identify decision criteria -> Allocate weights to criteria -> Develop alternatives -> Evaluate alternatives based on criteria -> Select best alternative > Implement -> Monitor results Analysis paralysis: A decision-making process in which more and more time is spent but no decisions made. Bounded rationality Model: Individuals knowingly limit their options to a manageable set and choose the first acceptable alternative. Creative Decision-Making Process: Three factors to evaluate level of creativity -Fluency (number of ideas generated) -Flexibility (How different the ideas are) - Originality (Uniqueness of the idea) Creativity occurs as an interaction of 3 factors: -Personality traits (Openness to experience) -Attributes (Expertise, imagination) -Situational Context

Decision-making traps: Overconfidence bias can cause you to ignore obvious information. Hindsight bias can cause a person to incorrectly believe in their ability to predict events. Anchoring bias is the tendency for people to rely too heavily on one piece of information. Framing bias is the tendency to be influenced by the way the problem is presented. Escalation of commitment demonstrate how individuals desire to be consistent or avoid admitting a mistake that cause them to invest in a decision that is no longer prudent. Advantages and Disadvantages of Different Levels of Decision Making: Individual Decision Making Pros -Faster than group decision making -Best individual in the group usually outperforms the group Cons -Fewer ideas - Challenging to identify the best individual Group Decision Making Pros -Diversity of ideas and can piggy back on others ideas -Greater commitment to ideas Cons -Group dynamics such as groupthink can occur -Social Loafing

Groupthink is the tendency to avoid a critical evaluation of the ideas the group favors. Symptoms are: A decision being legal doesnt mean it is ethical. Unethical decisions can lead to business failures. Decision quality cannot be judged by the consequences that follow. Decisions change nothing. Poor implementation can undermine even the best decision. Events may intervene between when a decision is made and its implementation. The best justification you have for a decision comes from the quality of the process by which the decision was made. Lay Theories (EntityIncremental): Entity orientationthey maintain that their essential qualities are fixed and cannot be changed.