HROB FINAL EXAM CHAPTER SUMMARIES!

HROB Chapter 1Regulation: legally binding rules established by the special regulatory bodies created to enforce compliance with the law and aid in interpretation.employment(labour) standards legislation laws present in every Canadian jurisdiction that establish minimum employee entitlements and set a limit on the maximum number of hours of work permitted per day or week.fundamental rights and freedoms: 1. freedom of conscience and religion 2. freedom of thought, belief, opinion, and expression, including the press and other media of communication 3. freedom of peaceful assembly 4. freedom of association.discrimination: a distinction, exclusion, or preference based on one of the prohibited grounds, that has the effect of nullifying or impacting the right if a person to full and equal recognition and exercise of his or her human rights and freedoms.unintentional/constructive/systemic discrimination:discrimination that is embedded in policies and practices that appear neutral on the surface and are implemented impartially but have an adverse impact on specific groups of people for reasons that are not job related or required for the safe and efficient operation of the business.reasonable accommodation: the adjustment of employment policies and practices that an employer may be expected to make so that no individual is denied benefits, disadvantaged in employment, or prevented from carrying out the essential components of a job because of grounds prohibited in human rights legislation.undue hardship: the point to which employers are expected to accommodate under human rights legislative requirements.bona fide occupational requirement (BFOR): a justifiable reason for discrimination based on business necessity (that is, required for the safe and efficient operation of the organization) or a requirement that can be clearly defended as intrinsically required y the tasks an employee is expected to perform.discrimination on the basis of race and colour is illegal in every Canadian jurisdiction.(race and colour)discrimination on the basis of sexual orientation is prohibited in all jurisdictions.(sexual orientation)discrimination on the basis of religion can take many forms in Canada's multicultural society.(religion)discrimination on the basis of family status are evolving.(family status)harassment: unwelcome behaviour that demeans, humiliates, or embarrasses a person and that a reasonable person should have known would be unwelcome.(sexual harassment)employer responsibility: protecting employees from harassment is part of an employer's responsibility to provide a safe and healthy working environment.harassment policies: to reduce liability, employers should establish sound harassment policies, communicate such policies to all employees, enforce the policies in a fair and consistent manner, and take an active role in maintaining a working environment that is free of harassment.

the plight of the four designated groups: women aboriginals people with disabilities visible & minorities.EEP(employment equity program):step 1: senior-management commitment and support2: data collection and analysis3: employment system review4: plan development5: implementation6: monitoring, evaluating, and revisingdiversity management: activities designed to integrate all members of an organization's multicultural workforce and use their diversity to enhance the firm's effectiveness.Creating an inclusive environment: top management commitment _ integration of diversity initiatives and talent management _ diversity training programs _ support groups _ critical relationship networks _ open dialogue _ management responsibility and accountability.conclusion: for organizations to reap the benefits of a diverse workforce, must make diversity an essential element of their operations, creating strong links btw diversity and corporate strategies.

Chapter 2 Perception, Personality, and Emotions

Perception DefinedPerception: The process by which individuals organize and interpret their impressions in order to give meaning to their environment. Perception is important to the study of OB because people's behaviour is based on their perception of what reality is, not on reality itself.

Factors Influencing PerceptionA number of factors affect perception, these factors are the perciever, the target, and the situation;

The Perceiver• When the perciever looks at a target and attempts to interpret what they see, the

interpretation is influenced by the perceiver's personal characteristics. These characteristics include a person's attitudes, personality, motives, interests, past experiences, and expectations.

The Target• A target's characteristics also affect what is perceived. For example, loud people

are more likely to get noticed than quiet people. Novelty, motion, sounds, size and other characteristics of a target shape the way we see it.

The Situation• The time at which we see an object or event can influence attention, as can

location, light, heat, or any number of situational factors.

Perceptual ErrorsSome of the errors that distort the perception process are attribution theory, selective perception, halo effect, contrast effects, projection, and stereotyping.

Attribution Theory• Attribution Theory is the theory that when we observe what seems like atypical

behaviour by and individual, we attempt to determine whether it is internally or externally caused.

o Internally caused behaviour is believed to be under the personal control of the individual.

o Externally caused behaviour is believed to result from outside causes. • In trying to determine if behaviour is internally or externally caused, we rely on

three rules about behaviour: (1) distinctiveness, (2) consensus, and (3) consistency.

Distinctiveness• Distinctiveness: A behavioural rule that considers whether an individual acts

similarly across a variety of situations. o Is the students always under performing? Or is the student's behaviour in

one situation uncharacteristic of behaviour usually shown in other situations? If the behaviour is unusual then the observer is likely to make an external attribution. If it is not unusual, the observer will probably judge it as internally caused.

Consensus• Consensus: A behavioural rule that considers if everyone faced with a similar

situation responds in the same way. • If everyone who is faced with a similar situation responds in the same way, we

can say the behaviour shows consensus. From an attribution perspective, if consensus is high, you would be expected to give an external attribution to the situation.

Consistency• Consistency: A behavioural rule that considers whether the individual has been

acting in the same way over time.o If a student is usually on time for class, being 10 minutes late will be

perceived differently from the way it is when the student is routinely late.How Attributions Get DistortedOne of the more interesting findings from attribution theory is that there are errors or biases that distort attributions.

• Fundamental attribution error: The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgements about the behaviour of others.

• Self-serving bias: The tendency for individuals to attribute their own success to internal factors while putting the blame for failures on external factors.

Selective Perception

• Selective Perception: People's selective interpretation of what they see based on their interests, background, experience, and attitudes.

o How does selectivity work as a shortcut in judging others? Since we cannot take in all that we observe, we take in bits and pieces. But those bits and pieces are not chosen randomly. Rather, they are selectively chosen according to our interests, background, experience, and attitudes.

Halo Effect• Halo Effect: Drawing a general impression of an individual on the basis of a

single characteristic.o Think about what happens when students evaluate their instructor.

Students may give more weight to a single trait, such as enthusiasm, and allow their entire evaluation to be coloured by how they judge their instructor on that trait.

Contrast Effect• Contrast Effect:The concept that our reaction to one person is often influenced

by other people we have recently encountered. Projection

• Projection:Attributing one's own characteristics to other people. • People who engage projection tend to perceive others according to what they

themselves are like, rather than perceiving others as they really are.Stereotyping

• Stereotyping: Judging someone on the basis of one's perception of the group to which that person belongs.

• We rely on generalizations every day because they help us make decisions quickly. It's less difficult to deal with an unmanageable number of stimuli if we use heuristics (judgement shortcuts in decision making).In organizations, we frequently hear comments that represent stereotypes based on gender, age, race, religion, ethnicity, and even weight. One of the problems with stereotypes is that they are widespread and often useful generalizations, despite the fact that they may not contain a shred of truth when applied to a particular person or situation.

• Stereotypes can lead to strong negative reactions, such as prejudice. Prejudice

• Prejudice: An unfounded dislike of a person or group based on their belonging to a particular stereotyped group.

• Prejudice can lead to negative consequences in the workplace and, in particular, to discrimination.

Why Do Perception and Judgement Matter?• People in organizations are always judging each other. For instance, people go

through an employment interview before being hired, where interviewers make perceptual judgements during the interview that affect whether the individual is hired. This means that perceptual factors influence who is hired, and, eventually, the quality of an organization's labour force.

• An employee's performance appraisal is another example of something in the work place that depends very much on the perceptual process. An employee's

future is closely tied to his or her appraisal—performance, pay raises, and continuation of employment are among the most obvious outcomes.

Self-Fulfilling Prophecy• Self-fulfilling prophecy: A concept that proposes a person will behave in ways

consistent with how he or she is perceived by others. o For example if a manager expects big things from his people, they are not

likely to let him down. Similarly if a manager expects people to perform minimally, they will tend to behave so as to meet those low expectations.

PersonalityWhat is Personality?

• Personality: The stable patterns of behaviour and consistent internal states that determine how an individual reacts to and interacts with others.

Measuring Personality• The most important reason managers need to know how to measure personality is

that research has shown that personality tests are useful in hiring decisions. Scores on personality tests help managers forecast who is the best fit for a job. The most common means of measuring personality is through self-report surveys, with which individuals evaluate themselves on a series of factors. One weakness of the self report method is that the respondent might lie or “fake it” on the test to create a good impression. Another problem is accuracy, a perfectly good candidate could have just been in a bad mood when the survey was taken.

Personality Determinants• An adult's personality is now generally considered to be made up of both

hereditary and environmental factors, moderated by situational conditions. Heredity

• Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness, gender, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are generally considered to be either completely or substantially influenced by your parent's biological, physiological, and inherent psychological makeup.

• Researchers have found that genetics can explain about 50% of the personality differences and more than 30% of the variation in occupational and leisure interests found in individuals.

Personality Traits• Personality Traits: Enduring characteristics that describe an individual's

behaviour. • Over the past 20 years, the Myers-Briggs Type Indicator and the Big 5 Personality

Model have become the dominant frameworks for identifying and classifying personality traits.

The Myers-Briggs Type Indicator• Myers-Brigg Type Indicator (MBTI): A personality test that taps four

characteristics j and classifies people into 1 of 16 personality types. It is a 100-question personality test that asks people how they usually feel or act in particular

situations. On the basis of their answers, participants are classified as extroverted or introverted (E or I), sensing or intuitive (S or N), thinking or feeling (T or F), and judging or perceiving (J or P).

• Extroverted/Introverted. Extroverted individuals are outgoing, sociable, and assertive. Introverts are quiet and shy. E/I measures where we direct our energy when dealing with people or things.

• Sensing/Intuitive. Sensing types are practical and prefer routine and order. They focus on details. Intuitives rely on unconscious processes and look at the “big picture.” This dimension looks at how we process information.

• Thinking/Feeling. Thinking types use reason and logic to handle problems. Feeling types rely on their personal values and emotions.

• Judging/Perceiving. Judging types want control and prefer their world to be ordered and structured. Perceiving types are flexible and spontaneous.

The Big Five Personality ModelThe Big Five personality factors are as follows:• Extroversion. This dimension captures a person's comfort level with relationships; it

describes the degree to which a person is sociable, talkative, and assertive• Agreeableness. This dimension refers to a person's propensity to defer to others; it

describes the degree to which a person is good-natured, cooperative, and trusting. • Conscientiousness. This dimension is a measure of reliability; it describes the degree

to which a person is responsible, dependable, persistent, and achievement-oriented. • Emotional Stability. This dimension taps a person's ability to withstand stress; it

describes the degree to which a person is calm, self-confident, and secure.• Openness to Experience. The final dimension addresses a person's range of interests

and fascination with novelty; it describes the degree to which a person is imaginative, artistically sensitive, and intellectual.

• Research on the Big Five has found a relationship between the personality dimensions and job performance. The evidence shows that individuals who are dependable, reliable, careful, thorough, able to plan, organized, hardworking, persistent, and achievement-oriented tend to have higher job performance in most if not all occupations. Employees who score higher in conscientiousness develop higher levels of job knowledge, probably because highly conscientious people exert greater levels of effort on their jobs. Although conscientiousness is the Big Five trait most consistently related to job performance, the other traits are related to aspects of performance in some situations.

• Emotional Stability. People who score high on emotional stability are happier than those who score lower. Of the Big Five traits, emotional stability is most strongly related to life satisfaction, job satisfaction, and low stress levels. This is probably true because high scorers are more likely to be positive and optimistic in their thinking.

• Extroversion. Compared with introverts, extroverts tend to be happier in their jobs and in their lives as a whole. They experience more positive emotions than do introverts, and they more freely express these feelings. They also tend to perform better in jobs that require significant interpersonal interaction, perhaps because they have more social skills. Finally, extroversion is a

relatively strong predictor of leadership emergence in groups; extroverts are more socially dominants, “take charge”, sorts of people.

• Openness to Experience. Individuals who score high on openness to experience are more creative in science and in art than those who score low. Because creativity is important to leadership, open people are more likely to be effective leaders. Also, open individuals are more comfortable with ambiguity and change than those who score lower on this trait.

• Agreeableness. You might expect agreeable people to be happier than disagreeable people, and they are, but only slightly. When people choose romantic partners, friends, and organizational team members, agreeableness is usually their first choice. Thus, agreeable individuals are better liked than disagreeable people. Agreeable people are also more compliant and rule abiding.

• Conscientiousness. Interestingly, conscientious people liver longer than less conscientious people because they tend to take better care of themselves and engage in fewer risky behaviours.

Major Personality Attributes Influencing OBCore Self-Evaluation

• Core self-evaluation: The degree to which an individual likes or dislikes himself or herself, whether the person sees himself or herself as capable and effective, and whether the person feels in control of his or her environment or powerless over the environment.

• People with positive core self-evaluations perform better than others because they set more ambitious goals, are more committed to their goals, and persist longer at attempting to reach these goals.

Machiavellianism• Machiavellianism (Machs): The degree to which an individual is pragmatic,

maintains emotional distance, and believes that ends can justify means. • High Machs manipulate more, win more, and persuade less, and persuade others

more than do low Machs. It has been found that high Machs do better (1) when they interact face to face with others rather than indirectly; (2) when the situation has minimum number of rules and regulations, thus allowing room for improvising; and (3) when emotional involvement with details irrelevant to winning distracts low Machs.

Narcissism• Narcissism: The tendency to be arrogant, have a grandiose sense of self-

importance, require excessive admiration, and have a sense of entitlement. o A study found that while narcissists thought they were better leaders, than

their colleagues, their supervisors actually rated them as worse leaders. Self-Monitoring

• Self-monitoring: A personality trait that measures an individual's ability to adjust behaviour to external situational factors.

o Research suggests that high self-monitors tend to pay closer attention to the behaviour of others and are more capable of confronting them than low self-monitors. High self-monitoring managers tend to be

more mobile in their careers and receive more promotions. Risk Taking

• Risk-Taking: A person's willingness to take risks. • High risk-taking managers made more rapid decisions and used less information

in making their choices than did low risk-taking managers. Type A and Type B Personalities

• Type A Personality: A personality with aggressive involvement in a chronic, incessant struggle to achieve more and more in less and less time and, if necessary, against the opposing efforts of other things or people.

• Are always moving, waling, and eating rapidly• Feel impatient with the rate at which most events take place• Strive to think or do two or more things at once• Cannot cope with leisure time• Are obsessed with numbers, measuring their success in terms of how may

or how much of everything they acquire• Type B Personality: A personality that is described as easy-going, relaxed, and

patient.• Never suffer from a sense of time urgency, with its accompanying

impatience• Feel no need to display or discuss either their achievements or

accomplishments unless such exposure is demanded by the situation• Play for fun and relaxation, rather than to exhibit their superiority at any

cost• Can relax without guilt

Proactive Personality• Proactive personality: A person who identifies opportunities, shows initiatives,

takes action, and perseveres until meaningful change occurs.

EmotionsWhat Are Emotions?

• Emotions: Intense feelings that are directed at someone or something.• Moods: Feelings that tend to be less intense than emotions and that lack a

contextual stimulus. Choosing Emotions: Emotional Labour

• Emotional Labour: When an employee expresses organizationally desired emotions during interpersonal interactions.

• For example, airlines expect their flight attendants to be cheerful; we expect funeral directors to be sad; and expect doctors to be emotionally neutral.

• Emotional Dissonance: Inconsistencies between the emotions people feel and the emotions they show

• Felt Emotions: An individual's actual emotions• Displayed Emotions: Emotions that are organizationally required and considered

appropriate in a given job.

• Surface Acting: Hiding one's inner feelings to display what is expected • Deep Acting: Trying to modify one's true inner feelings to match what is

expected. Why Should We Care About Emotions in the Workplace?Emotional Intelligence (EI)

• Emotional Intelligence: An assortment of noncognitive skills, capabilities, and competencies that influence a person's ability to succeed in coping with environmental demands and pressures.

• EI is a persons ability to (1) be self-aware, (2) detect emotions in others, and (3) manage emotional cues and information.

The Case for EI• Intuitive Appeal There is a lot of intuitive appeal to the EI concept. Almost everyone would agree it is good to possess street smarts and social intelligence. • EI Predicts Criteria That Matter More and more evidence suggests that a high level of EI means a person will perform well on the job. • EI is Biologically Based One study has shown that people with damage to the part of the brain that governs emotional processing score significantly lower than others on EI tests. Even though these brain damaged people score no lower on standard measures of intelligence than people without the same brain damage.

The Case Against EI• EI Is Too Vague a Concept To many researchers, it's not clear what EI is. Is it a

form of intelligence? Most of us would not think that being self-aware or self-motivated or having empathy is a matter of intellect. Moreover, different researchers often focus on different skills, making it hard to get a definition of EI.

• EI Cannot Be Measured Many critics have raised questions about measuring EI. Because EI is a form of intelligence, for instance, there must be right and wrong answers about it on tests, they argue. Some tests do have right and wrong answers, although the validity of some of the questions on these measures is questionable.

• The Validity of EI Is Suspect Some critics argue that because EI is so closely related to intelligence and personality, once you control for these factors, EI has nothing unique to offer.

Negative Workplace EmotionsNegative emotions can lead to a number of deviant workplace behaviours.

• Employee deviance are voluntary actions that violate established norms and threaten the organization, its members, or both. Many of these deviant behaviours can be traced to negative emotions. For instance, envy is an emotion that occurs when you resent someone for having something you don't, and that you strongly desire—such as a better work assignment, larger office, or higher salary.

Affective Events Theory• Affective Events Theory (AET): The theory that employees react emotionally to

things that happen to them at work and that this emotional reaction influences their job performance and satisfactions.

Chapter 3 Values, Attitudes and Diversity in the Workplace

Values – Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence

Terminal values – Goals that individuals would like to achieve during their lifetime

Instrumental values – Preferable ways of behaving

Ethics – The study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong

Power distance – A national culture attribute that describes the extent to which a society accepts that power in institutions and organizations is distributed unequally

Individualism – A national culture attribute that describes the degree which people prefer to act as individuals rather than as members of groups

Masculinity – A national culture attribute that describes the extent to which the culture favours traditional masculine work roles of achievement, power, and control. Societal values are characterized by assertiveness and materialism

Femininity – A national culture attribute that sees little differentiation between male and female roles; women are treated as the equals of men in all respects

Uncertain avoidance – A national culture attribute that describes the extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them

Long-term orientation – A national culture attribute that emphasizes the future, thrift, and persistence

Short-term orientation – A national culture attribute that emphasizes the past and present, respect for tradition, and fulfillment of social obligations

Attitudes – Positive or negative feelings about objects, people, or events

Job satisfaction – An individual’s general attitude toward his or her job

Core self-evaluation – The degree to which an individual likes or dislikes him or herself as capable and effective, and whether the person feels in control of his or her environment or powerless over the environment

Organizational citizenship behaviour (OCB) – Discretionary behaviour that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization

Exit – Dissatisfaction expressed by actively attempting to leave the organization

Voice – Dissatisfaction expressed by actively and constructively attempting to improve conditions

Loyalty – Dissatisfaction expressed by passively waiting for conditions to improve

Neglect – Dissatisfaction expressed by passively allowing conditions to worsen

Organizational commitment – A state in which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization

Affective commitment – An individual’s emotional attachment to, identification with, and involvement in the organization

Normative commitment – The obligation an individual feels to staying with the organization

Continuance commitment – An individual’s calculation to stay with the organization based on the perceived costs of leaving the organization

Employee engagement – An individual’s involvement with, satisfaction with, and enthusiasm for the work he or she does

Cultural intelligence – The ability to understand someone’s unfamiliar and ambiguous gestures in the same way as would people from that person’s culture

Milton Rokeach’s value survey contain 18 individual value items from each terminal values and instrumental values. People alike with alike jobs have alike rakings in the value items. +

Geert Hofstede’s Framework for Assessing Cultures – he found that managers and employees vary on five value dimensions of national culture – power distance, individualism, masculinity, femininity, uncertainty avoidance, long-term orientation, and short-term orientation.

Individuals who have an accurate understanding of the job requirements and organization’s values have greater level of satisfaction and organizational commitment. Attitude affects job satisfaction, organizational commitment and employee engagement. With positive attitude, job satisfaction increases, commitment is longer and stronger and engagement increases, creating a happier employee.

Employees may express dissatisfaction though 4 types of behaviour – Exit, Voice, Loyalty, Neglect.

A positive relationship appears to exist between organizational commitment and job productivity.

Affective commitment is strongly associated with positive work behaviours such as performance, attendance, and citizenship.

Normative commitment is less strongly associated with positive work behaviours.

Chapter 4: Organizational Culture• Organizational Culture: the pattern of share values, beliefs, and assumptions 

considered to be the appropriate way to think and act within an organization• Key features of culture are:

o Shared by the members of the organizationo Helps members of the organization solve and understand the things that it 

encounters, both internally and externallyo Assumptions, beliefs, and expectations are taught to new memberso Assumptions, beliefs, and expectations strongly influence how people 

perceive, think, feel, and behave within the organization• Levels of Culture

o Artifacts: aspects of an organization’s culture that you see, hear, and feelo Beliefs: the understandings of how objects and ideas relate to each othero Values: the stable, long­lasting beliefs about what is importanto Assumptions: the taken­for­granted notions of how something should be

• Characteristics of Cultureo Innovation and Risk­taking: the degree to which employees are 

encouraged to be innovative and take riskso Attention to detail: the degree to which employees are expected to work 

with precision, analysis and attention to detailo Outcome orientation: the degree to which management focuses on results, 

or outcomes, rather than on the techniques and processes used to achieve these outcomes

o People orientation: the degree to which management decisions take into consideration the effect of outcomes on people within the organization

o Team orientation: the degree to which work activities are organized around teams rather than individuals

o Aggressiveness: the degree to which people are aggressive and competitive rather than easygoing and supportive

o Stability: the degree to which organizational activities emphasize maintaining the status quo in contrast to growth

• Culture’s Functionso It has a boundary­defining role because it creates distinction between one 

organizations and otherso It conveys a sense of identity to organization members 

o It helps create commitment to something larger than an individuals self­interest

o It enhances stability; it is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do

o It serves as a control mechanism that guides and shapes the attitudes and behaviour of employees, and helps them make sense of the organization

• Dominant Culture: expresses the core values shared by a majority of the organization’s members

• Subcultures: mini­cultures within an organization, typically defined by department designations and geographical separation

o Include core values – the primary, or dominant, values in the organization – plus addition values unique to members of the department

• Strong Culture: a culture in which the core values are intensely held and widely shared

o Demonstrates high agreement among members about what the organization stands for

• Rituals: repetitive sequences of activities that express and reinforce the key values of the organization; what goals are most important; and which people are important, and which ones are expendable

•• 3 forces of sustaining a culture:

o Selection Identify and hire individuals who have knowledge skills, and 

abilities to perform the jobs within the organizationo Top management

Through what and how senior executives behave establishes norms that filter down through the organization

o Socialization The process that adapts new employees to an organization’s 

culture Prearrival stage

• Encompasses all the learning that occurs before a new member joins the organization

Encounter stage• New employee sees what the organization is really like and 

confronts the possibility that expectations and reality may diverge

Metamorphosis stage• New employee masters the skills required for his or her job, 

successfully performs his or her new roles, and makes the adjustments to his or her work group’s values and norms

• Culture is a liability when the shared values are not in agreement with those that 

will further the organization’s effectiveness• Consistency of behaviour is an asset to an organization when the company faces a 

stable environment• Strategies for merging cultures

o Assimilation: the entire new organization is determined to take on the culture of one of the merging organizations

o Separation: the organizations remain separate and keep their individual cultures

o Integration: a new culture is formed by merging parts of each of the organizations

• Bicultural Audit: an examination of the differences between two potential merger partners prior to a merger to determine whether the cultures will be able to work together

• What management can do to create a more ethical culture:o Be a visible role modelo Communicate ethical expectationso Provide ethics trainingo Visibly reward ethical acts and punish unethical oneso Provide protective mechanisms

• Positive organizational culture: a culture that emphasizes building on employee strengths, rewards more often than it punishes, and emphasizes individual vitality and growth

Chapter 5

The Rational Decision-Making Process• A rational decision maker makes consistent, value­maximizing choices within 

specified constrains• These choices are made by following 6 steps:

1. Define the

problem

1. Define the

problem

2. Identify the criteria

2. Identify the criteria

3. Allocate weights to the criteria

3. Allocate weights to the criteria

4. Develop Alternatives

4. Develop Alternatives

5. Evaluate the

alternatives

5. Evaluate the

alternatives

6. Select the best

alternative

6. Select the best

alternative

• This 6 step decision­making model contains a number of assumptions:­ Problem clarity: The problem is clear and unambiguous. The decision 

maker is assumed to have complete information regarding the decision situation.

­ Known options: It’s assumed the decision maker can identify all the relevant criteria and can list all the workable alternatives. Furthermore, the decision maker is aware of all the possible consequences of each alternative.

­ Clear preferences: Rationality assumes that the criteria and alternatives can be ranked and weighted to reflect their important.

­ Constant preferences: It’s assumes that the specific decision criteria are constant and that the weights assigned to them are stable over time.

­ No time or cost constraints: The decision maker can obtain full information about criteria and alternatives because it’s assumed that there are no time or cost constraints.

­ Maximum payoff: The decision maker will choose the alternative that yields the highest perceived values.

How to individuals actually maker decisions?• Most decisions in the real world don’t follow the rational model. People are 

usually happy to find an acceptable or reasonable solution to their problem rather than an optimizing one.

Where reality of decision-making conflicts with the rational model:• It’s difficult for people to identify and consider every possible alternative 

available to them. Realistically speaking, people are limited by their ability to interpret, process, and act on information. This is called bounded rationality. 

• Intuitive decision­making is a non­conscious process created from distilled experience. It’s defining qualities are that it occurs outside conscious thoughts; it relies on holistic associations, or links between disparate pieces of information; it’s fast; and it’s affectively charged, meaning that it usually engages the emotions. 

• Judgment Shortcuts: attempts to shortcut the decision process that often leads to mistakes when making decisions.

­ Overconfidence Bias: Error in judgment that arises from being far too optimistic about one’s own performance

­ Anchoring Bias: A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information.

This happens because our mind gives a disproportionate amount of emphasis to the first information it receives.

Anytime negotiating takes place so does anchoring.­ Confirmation Bias: The tendency to seek out information that reaffirms 

past choices and to discount information that contradicts past judgments.  The information we gather is typically biased toward supporting 

views we already hold. ­ Availability Bias: The tendency for people to base their judgments on 

information that is readily available to them rather than complete data. We tend to overestimate the occurrence of unlikely events, such 

as airplane crashes, compared with more likely events, such as car crashes.

This explains why managers, when doing annual performance appraisals tend to give more weight to recent behaviours of an employee than those further in the past. 

­ Escalation of Commitment: An increased commitment to a previous decision despite negative information.

People escalate commitment to a failing course of action when they view themselves as responsible for the failure.

­ Randomness Error: The tendency of individuals to believe that they can predict the outcome of random events. 

Ex: superstitions affecting decision making.­ Winner’s Curse: The tendency for the winning participants in an auction 

to pay too much for the item won.  Gets stronger as the number of participant’s increases.

­ Hindsight Bias: The tendency to believe falsely, after an outcome of an event is actually known, that one could have accurately predicted that outcome.

Reduces our ability to learn from the past. Leads to overconfidence.

Improving Decision Making through Knowledge Management• Knowledge Management is the process of organizing and distributing an 

organization’s collective wisdom so that the right information gets to the right people at the right time. 

­ This can provide an organization with a competitive edge and improved organization performance because employees are smarter.

• KM is increasingly important today for at least three reasons:­ Organizations that can quickly and efficiently tap into their employees’ 

collective experience and wisdom are more likely to “outsmart” their competition

­ As Baby Boomers begin to leave the workforce, there is an increasing awareness that they represent a wealth of knowledge that will be lost if there are no attempts to capture it.

­ A well­designed KM system reduces redundancy and makes the organization more efficient. 

• Organizations record the knowledge and expertise of their employees and make the information easily accessible by:

­ Creating a database of pertinent information. This includes identifying what information is important to the organization.

­ Creating a culture that promotes, values, and rewards sharing knowledge. ­ Developing mechanisms that allow employees who have built up valuable 

expertise and insights to share them with others. 

Group Decision Making• Group decision­making are widely used in organizations, but there are pro’s and 

con’s to this way of making­decisions.• Strengths of group decision­making

­ More complete information and knowledge.­ Groups bring an increased diversity of views to the decision process.­ Higher­quality decisions.­ More accurate.­ More creative.­ Increased acceptance of a solution.

• Weaknesses of Group Decision Making ­ Time­consuming.­ Conformity pressures.­ One or a few members could dominate the group. ­ Less efficient 

• Groupthink is a phenomenon which group pressures for conformity prevent the group from critically appraising unusual minority, or unpopular views. 

­ Symptoms of the groupthink phenomenon: Illusion of invulnerability: Group members become overconfident 

amount themselves. Assumption of morality: Group members believe high in the moral 

rightness of the group’s objectives and do not feel the need to debate the ethics of their actions.

Rationalized resistance: Group members rationalize any resistance to the assumptions they have made. 

Peer pressure: Group member apply direct pressures on those who momentarily express doubts about any of the group’s shared views or who question the validity of argument supporting the alternative favoured by the majority.

Minimized doubts: Those group members who have doubt or hold differing points of views seek to avoid deviating from what appears to be group consensus.

Illusion of unanimity: If someone doesn’t speak, it’s assumed that he/she agrees. 

­ What can managers do to suppress groupthink?

Monitor group size. No more than 10 people. Encourage group leaders to play an impartial role. Appoint one group member to play the role of devil’s advocate. 

Used to challenge the majority position. Stimulate active discussion of diverse alternatives to encourage 

dissenting views and more objective evaluations.• Groupshift is a phenomenon in which the initial positions of individual group 

members become exaggerated because of the interactions of the group. • Techniques used to stimulate decision making:

­ Interacting Groups: The most common form of group decision making. Members meet face to face and rely on both verbal and nonverbal interaction to communicate with each other. 

­ Brainstorming: An idea­generation process that specifically encourages any and all alternatives, while withholding any criticism of those alternatives.  Meant to overcome pressures for conformity in the interacting 

group.­ Nominal Group Technique: Individual members meet face to face to pool 

their judgments in a systematic but independent fashion.  Steps in nominal group technique:

1) Group meets but before the discussion takes place each member independently writes down his or her ideas.

2) Each member presents one idea to the group.3) The group then discusses the ideas for clarity and evaluates them.4) Each member independently and silently ranks the ideas. Idea with 

highest ranking determines final decision.­ Electronic Meetings: Members interact on computers allowing for 

anonymity of comments and aggregation of votes. 

Creativity in Organizational Decision Making• Creativity is important in the decision making process because it allow the 

decision maker to more fully appraise and understand the problem, including seeing problems others cannot. 

• The three­component model of creativity is the proposition that individual creativity requires expertise, creative­thinking skills, and intrinsic task motivation.

­ The higher the level of each component, the higher the creativity.• Organizational factors that affect creativity:

­ Expected evaluation: focusing on how you work is going to be evaluated.­ Surveillance: being watched while you are working.­ External motivators: focusing on external, tangible rewards.­ Competition: facing win­lose situations with peers.­ Constrained choice: being given limits on how you can do your work.

What About Ethics in Decision Making?• Ethics is the study of moral values or principles that guide our behaviour and 

inform us whether actions are right or wrong.• There are four criteria in making ethical choices:

­ Utilitarian criterion, in which decisions are made solely on the basis of their outcomes or consequences.  Goal is to provide the greatest good for the greatest number.

­ Rights, which calls on individuals to make decisions consistent with fundamental liberties and privileges. Used to protect whistle­blowers. People that report unethical 

practices by their employer to outsiders. ­ Justice, which requires individuals to impose and enforce rules fairly and 

impartially so there is an equitable distribution of benefits and costs.­ Care, the morally correct action is the one that expresses care in 

protecting the special relationships that individuals have with each other.• Ethical and unethical actions are largely a function of both the individual’s 

characteristics and the environment in which he/she works. • Factors affecting ethical decision­making behaviour:

­ Stages of Moral Development: assesses a person’s capacity to judge what is morally right. 3 stages of moral development.

1) Preconventional level2) Conventional level3) Principled level

Those at the higher stages are most likely to make ethical decisions.­ Locus of Control

Those with an external locus of control are less likely to take responsibility for the consequences of their behaviour.

Those with internal locus of control are more likely to rely on their own internal standards of right or wrong to guide their behaviour.

­ Organization Environment, refers to an employee’s perception of organizational expectations. People that lack a strong moral sense are much less likely to make 

unethical decisions if they constrained by an organizational environment that frowns on such behaviour.

On the other hand, an organizational environment that permits or encourages unethical practices can corrupt righteous people. 

• This illustration is to help guide an individual to making the right/ethical decision

• Ethical 

standards are different all over the world. What is ethical or unethical in Canada may not be in the US. Ethical standards in China are completely different than in North America.

­ An example: A manager of a large US company was working in China and caught an employee stealing. She fired him and turned him over to the authorities. Later she found out he was executed. This proves how extreme the differences can be.

Corporate Social Responsibility• Corporate social responsibility is defined as an organization’s responsibility to 

consider the impact of its decisions on society.

HROB*2100 Chapter 6 – Organizational Structure

What is Organizational Structure?An organizational structure defines how job tasks are formally divided, grouped, and coordinated. The structure can represent a tall pyramid or it can be relatively flat. The organizational structure can also be something intermediate between pyramid and flat. Among other things, the structure determines the reporting relationships of people. Thus, in a flat organization, if you have a problem you can easily talk to the person at the top of the organization. In a pyramid organization, if you have a problem you may report to your manager who will then report to his or her manager, and this chain will keep going until you finally reach the manager at the top of the organization. Refer to Exhibit 6-2 and 6-2 on page 126 for a visual image.

Work SpecializationWe use the term work specialization or division of labour, to describe the degree to which tasks in the organization are subdivided into separate jobs.

The essence of work specialization is that, rather than an entire job being completed by one individual, it’s broken down into a number of steps, with each being completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entire activity.

• Employee skills at performing a task improve through repetition.

• It’s easier and less costly to find and train workers to do specific and repetitive tasks. This is especially true of highly sophisticated and complex operations.

• Example: A Montreal-based Bombardier would not be able to produce even one jet a year if only one person had to build the entire plane by themselves. Instead, they have several people working on the same task.

• Work specialization increases efficiency and productivity by encouraging the creation of special inventions and machinery.

• Specialization can lead to boredom, fatigue, stress, low productivity, poor quality and high turnover, so it is not always the best way to organize employees. Giving employees a variety of activities to do, allowing them to do a whole and complete a job, and putting them into teams with interchangeable skills can result in significantly higher output and increased employee satisfaction.

DepartmentalizationOnce you have divided up jobs through work specialization, you need to group these jobs together so that common tasks can be coordinated. The basis on which jobs are grouped together is called departmentalization. There are different types of departmentalization:

1. Functional Departmentalization• One of the most popular ways to group activities is by functions

performed. • Example: a manufacturing company might separate engineering,

accounting, manufacturing, human resources and purchasing specialists into common departments.

• The major advantage to function groupings is obtaining efficiencies from putting people with common skills and orientations together into common units.

2. Product Departmentalization• Tasks can also be departmentalized by the type of product the

organization produces.• Example: Estee Lauder, whose product lines include Clinique,

Prescriptive, Origins, MAC Cosmetics, and Estee Lauder, operates each line as a distinct company.

• The major advantage to this type of grouping is increased accountability for product performance, since all activities related to a specific product line are under the direction of a single manager.

• In other words, one big company and several smaller companies. Refer to exhibit 6-5 on page 129.

3. Geographic Departmentalization• Another way to departmentalize is on the basis of geography, or territory.

• The sales function, for instance, may be divided regionally with departments for British Columbia, the Prairies, Central Canada and Atlantic Canada.

• If an organization’s customers are scattered over a large geographic area and have similar needs based on their location, then this form of departmentalization can be valuable.

4. Process Departmentalization• Some companies organize departments by the processing that occurs.

• Example: an aluminum tubing manufacturer might have the following departments: casting, press, tubing, finishing, inspecting, packaging and shipping. This is an example of a process department because each department specializes in one specific phase in the production of aluminum tubing.

• Process departmentalization can be used for processing customer, as well as products.

• Example: in some provinces, you may go through a series of steps handled by several departments before receiving your driver’s license.

5. Customer Departmentalization• Another way to departmentalize is on the basis of the particular type of

customer the organization seeks to reach. • The sales activities in an office supply firm, for instance, can be broken

down into three departments to provide specialized service to different customer categories: service retail, wholesale and government customers.

• Refer to Exhibit 6-7 on page 131.

Chain of CommandThe chain of command is the continuous line of authority that extends from upper organizational levels to the lowest level and clarifies who reports to whom. It helps employees answer questions such as, “Who do I go to if I have a problem?”Because managers have limited time and knowledge they may choose to delegate some of their responsibilities to other employees. Delegation is the assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions.

Span of ControlSpan of control refers to the number of employees who report to a manager. This number will vary by organization, and by unit within an organization, and is determined by the number of employees a manager can efficiently and effectively direct. In an assembly-line factory, a manager may be able to direct numerous employees, because the work is well defined and controlled by machinery. A sales manager, by contrast, might have to give one-on-one supervision to individual sales reps, and

therefore, fewer would report to the sales manager. All things being equal, the wider or larger the span, the more efficient the organization. Narrow or small spans have their advocats. By keeping the span of control to 5 or 6 employees, a manager can maintain close control. But narrow spans have three major drawbacks. First, they are expensive because they add levels of management. Second, they make vertical communication in the organization more complex. The added levels of hierarchy slow down decision making and tend to isolate upper management. Third, narrow spans of control encourage overly tight supervision and discourage employee autonomy.

Centralization and DecentralizationCentralization refers to the degree to which decision making is concentrated at a single point in the organization. The concept includes only formal authority; that is; the rights inherent in one’s position. Typically, it’s said that if top management makes the organization’s key decisions with little or no input from lower-level employees, then the organization is centralized. In contrast, the more that lower-level employees provide input or are actually given the discretion to make decisions, the more decentralization there is. In other words, decentralization is the degree to which decision making is distributed to lower-level employees.

• In a decentralized organization, action can be taken more quickly to solve problems, more people provide input onto decisions, and employees are less likely to feel alienated from those who make the decisions that affect their work lives. Decentralized departments make it easier to address customer concerns as well.

Individual Responses to CentralizationWe find fairly strong evidence linking centralization and job satisfaction. In general, organizations that are less centralized have a greater amount of participative decision making. The evidence suggests that participative decision making is positively related to job satisfaction.

FormalizationFormalization refers to the degree to which jobs within the organization are standardized. If jobs are highly formalized, there are explicit job descriptions, lots of organizational rules and clearly defined procedures covering work processes in organizations. Where formalization is low, job behaviours are relatively non-programmed, and employees have a great deal of freedom to exercise discretion in their work.McDonald’s is an example of a company where employee routines are highly formalized. Employees are instructed in such things as how to greet the customer, ask for and receive payment, count change out loud, and thank the customer.

Mechanistic and Organic Organizations/StructuresA mechanistic model is a structure characterized by high specialization, rigid departmentalization, a clear chain of command, narrow spans of control, a limited

information network and centralization (little participation from lower-levels in decision making).An organic model is a structure that is flat, uses cross functional and cross-hierarchal teams, possesses a comprehensive information network, has wide spans of control and has low formalization. Lower-level employees are able to participate in decision-making processes. Refer to Exhibit 6-10 on page 136 for a visual diagram.

Traditional Organizational DesignsThree types of organizational designs: simple structure, the bureaucracy, and the matrix structure.

The Simple Structure• An organizational design characterized by a low degree of departmentalization,

wide spans of control, authority centralized in a single person and little formalization.

• The simple structure is a “flat” organization; it usually has two or three vertical levels, a loose body of employees, and one individual in whom the decision-making authority is centralized.

• The simple structure is most widely practiced in small businesses in which the manager and the owner are one and the same.

• One of the weaknesses is that it’s difficult to maintain in anything other than small organizations. It becomes increasingly inadequate as an organization grows because its low formalization and high centralization tend to create information overload at the top.

• As size increases, decision making typically becomes slower and can eventually come to a standstill as the single executive tries to continue making all the decisions.

• At this point, if the structure does not change, the firm often loses momentum and can eventually fail.

Family businesses represent 70% of Canadian employment and more than 30% gross domestic product. Many family businesses have relatively simple structures. Family businesses have more complex dynamics than nonfamily businesses, because they face both family/personal relations and business/management relations.

The Bureaucracy Standardization is the key concept underlying all bureaucracies. A bureaucracy is characterized by highly routine operating tasks achieved through specialization, formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.

Strengths of Bureaucracy

• The primary strength of the bureaucracy lies in its ability to perform standardized activities in a highly efficient manner.

• Putting together similar specialties in functional departments results in economies of scale, minimum duplication of staff and equipment, and employees who have the opportunity to talk “the same language” with their peers.

• Bureaucracies can get by nicely with less talented-and hence, less costly – middle to lower managers. Since decision-making is centralized, there is little need for innovative and experienced decision makers below the level of senior executives.

Weaknesses of Bureaucracy• Bureaucracies can create subunit conflict. For example, each department may

believe that they have a larger and more important role over the other departments. The production department believes that it has the most important role in the organization because nothing happens until something is produced. Meanwhile, the research and development department may believe that design provides added value to a product, while producing it is no big deal.

• In this case, each department acts like a silo, focusing more on what it perceives as its own value and contribution to the organization. Each silo fails to understand that departments are really interdependent.

• Bureaucracy can sometimes lead to power being concentrated in the hands of just a few people, with others expected to follow their orders unquestioningly.

The Matrix StructureThe Matrix Structure is an organizational design that combines functional and product departmentalization; it has a dual chain of command. You will find it being used it advertising agencies, aerospace firms, R&D, laboratories, construction companies, hospitals, governments agencies, universities, etc. Functional departmentalization groups similar specialists, which minimizes the number necessary, while it allows the pooling and sharing of specialized resources across products. Product departmentalization facilitates coordination among specialties to achieve on-time completion and meet budget targets. Employees in the matrix have two bosses – their functional department managers and their product managers. Therefore, the matrix is a dual chain of command.

Advantages of a Matrix Structure• It’s ability to foster coordination when the organization carries out many complex

and interdependent activities. • The dual lines of authority reduce tendencies of departmental members to become

so busy protecting their little worlds that the organization’s overall goals become secondary.

• The matrix facilitates that efficient allocation of specialists. When individuals with highly specialized skills are lodged in one functional department or product group, their talents are underused. The matrix achieves the advantages of

economies of scale by providing the organization with both the best resources and an effective way of ensuring their efficient deployment.

Disadvantages of a Matrix Structure• The major disadvantages of the matrix lie in the confusion it creates, its tendency

to foster power struggles, and the stress it places on individuals. For example, it is frequently unclear who reports to whom, and it’s not unusual for product managers to fight over getting the best specialists assigned to their products.

• Confusion and ambiguity also create the seeds of power struggles. Bureaucracy reduces the potential for power grabs by defining the rules of the game. When those rules are “up for grabs”. Power struggles between functional and product managers result.

• For individuals who desire security and absence of ambiguity, this work climate can produce stress.

• Reporting to more than one manager introduces rule conflict, and unclear expectations introduce role ambiguity.

New Design Options1. The Team Structure

• The use of teams as the central device to coordinate work activities.

• The primary characteristics of the team structure are that is breaks down departmental barriers and decentralizes decision making to the level of the work team.

• The team structure often complements what is typically a bureaucratic structure. This allows the organization to achieve the efficiency of bureaucracy’s standardization while gaining the flexibility that teams provide.

2. The Modular Structure• A small core organization that outsources major business functions

• Nike, Reebok, Liz Claiborne, and Dell Canada are just a few of the thousands of companies that have found that they can do hundreds of millions of dollars in business without owning manufacturing facilities. These organizations have created networks of relationships that allow them to contract out manufacturing, distribution, marketing, or any other business function where management believes that others can do it better or more cheaply.

• Refer to Exhibit 6-13 on page 143.

3. The Virtual Organization• A continually evolving network of independent companies – suppliers,

customers, even competitors – linked together to share skills, costs and access to one another’s markets.

• In a virtual organization, units of different firms join together in an alliance to pursue common strategic objectives. While control in the modular structure remains with the core organization, in the virtual organization participants give up some of their control and act more interdependently.

4. The Boundaryless Organization• An organization that seeks to eliminate the chain of command, have

limitless spans of control, and replace departments with empowered teams.

• The boundaryless organization breaks down barriers internally by flattening the hierarchy, creating cross-hierarchal teams (which include top executives, middle managers supervisors and operative employees), and using participative decision-making practices and 360 degree performance appraisals (where peers and others above and below the employee evaluate his or her performace).

• One of the drawbacks of boundaryless organizations is that they are difficult to manage. It’s difficult to overcome the political and authority boundaries inherent in many organizations.

What Major Forces Shape an Organization’s Structure?

Strategy1. Innovation Strategy

• An innovation strategy does not mean a strategy merely for simple or cosmetic changes from previous offerings, but rather one for meaningful and unique innovations. In other words, a strategy that emphasizes the introduction of major new products and services.

2. Cost-Minimization Strategy• A strategy that emphasizes tight cost controls, avoidance of unnecessary

innovation or marketing expenses, and price cuttings. This is used by Wal-Mart

3. Imitation Strategy • A strategy of moving into new products or new markets only after

viability has already been proven. • Seek to minimize risk and maximize opportunity for profit.

• They take the successful ideas of innovators and copy them.

• Example: Manufacturers of mass-marketed fashion goods that are “rip-offs” of designer styles follow the imitation strategy.

• Imitators combine both organic and mechanistic structures. They need the flexibility of the organic structure, while cost minimizers seek the efficiency and stability of the mechanistic structure.

Organizational Size• There is considerable evidence to support the idea that an organization’s

size significantly affects its structure. • For instance, large organizations – those typically employing 2000 or

more people – tend to have more specialization, more departmentalization, more vertical levels and more rules and regulations than small organizations.

• The relationship in not linear, rather, size affects structure at a decreasing rate.

• The impact of size becomes less important as an organization expands. This is because once an organization has around 2000 employees, 500 more won’t make much of a difference. But when a company has 300 employees, 50 0more will make a big difference – these companies will likely then shift into a mechanistic structure.

Technology• The term technology refers to the way in which an organization transfers

its inputs into outputs.• Every organization has at least one technology for converting financial,

human, and physical resources into products or services. • The Ford Motor Company, for instance, predominantly uses an assembly-

line process to make its products. • Organizational structures adapt to their technology.

The Relationship between Technology and Structure• We find that routine activities (activities that are uncustomized) are associated

with taller and more departmentalized structures.• An interesting relationship has been found between technology and centralization.

It seems logical that routine technologies would be associated with a centralized structure, whereas nonroutine technologies, which rely heavily on the knowledge of specialists, would be characterized by delegated decision authority.

Environment• An organization’s environment is composed of those institutions or forces outside

the organization that potentially affect the organization’s performance. These typically include suppliers, customers, competitors, government regulatory agencies, public pressure groups, etc.

• Some organization’s face relatively static environments – few forces in their environment are changing. There is, no new competition, no new technology, or little activity by public pressure groups.

• Some organization’s face dynamic environments – rapidly changing government

regulations affecting their business, new competitors, difficulties in acquiring raw materials, continually changing product preferences by customers, and so on.

• Static environments create significantly less uncertainty for managers than do dynamic ones.

Capacity• The capacity of an environment refers to the degree to which it can support

growth.• Abundant capacity, for example, leaves room for an organization to make

mistakes, while scarce capacity does not.

Volatility• The degree of instability in an environment is captured in the volatility dimension.

Where there is a high degree of unpredictable chance, the environment is dynamic. This makes it difficult for management to predict accurately the probabilities associated with various decision alternatives.

**Refer to Exhibit 6-16 on page 148

Chapter 7: Designing and Analyzing Jobs HROB

Organizing work for strategic Success

• An organization consists of one or more employees who perform various tasks. The relationships between the people and the tasks must be structure so it can result in the organization achieving its strategic goals.

• Organizational structure: the formal relationships among jobs in an organization.

• Organizational chart: a “snapshot” of the firm, depicting the organization’s structure in chart form at a particular point in time. Indicates the types of departments and the title of each departments manager (president, supervisor, etc.)

o By means of connecting lines, it clarifies the chain of command and shows who is accountable to whom.

o Does not provide details about communication patterns, degrees of supervision, amount of power and authority, or specific duties or responsibilities.

• Three common types of organizational structure: o Bureaucratic: Top-down management approach. Many levels and

hierarchical communication channels and career path. Highly specialized jobs with narrowly defined job descriptions. Focus on independent performance.

o Flat: Managers have increased spans of control and thus less time to manage each one, making the employees jobs involve more responsibility.

Decentralized management approach. Few levels and multi-directional communication. Broadly defined jobs, with general job descriptions. Emphasis on teams and on product development.

o Matrix: Each job has two components: functional and product. Finance personnel for product B are responsible to both finance executive and the product B executive.

Job Design

• Job Design: the process of systematically organizing work into tasks that are required to perform a specific job. (In organizations, work is divided into manageable units and into jobs that can be performed by employees). Effective job design takes into consideration human and technological factors.

• Job: A group of related activities and duties, held by a single employee or a number of incumbents. Duties should be clear and distintic from other jobs.

• Position: the collection of tasks and responsibilities performed by one person.

Job Specialization (Industrial Engineering)

• As the substitution of machine power for people power became more widespread, experts wrote about two positive correlations between: job specialization and productivity and efficiency.

o The popularity of specialized, short-cycle jobs soared among management experts and managers

• Work simplification: evolved from scientific management theory. It is based on the premise that work can be broken down into clearly defined, highly specialized, repeative tasks to maximize efficency. It is an approach to job design that involves assigning administrative aspects of work (such as planning and organizing) to supervisors and managers, while giving lower-level employees narrowly defined tasks to perform according to methods established and specified by management.

o Work simplification can increase operating efficiency in a stable environment and may be very appropriate in settings employing individuals with intellectual disabilities or those lacking education and training. It is not effective with educated employees or in a changing environment with demand in custom-designed products or high-quality services, as it creates lower job satisfaction, higher rates of absenteeism and turnover, and sometimes demand for premium pay to compensate for the repetitive nature of the work.

• Industrial engineering: a field of study concerned with analyzing work methods; making work cycles more efficient by modifying, combining, rearranging, or eliminating tasks; and establishing time standards.

o To much emphasis on industrial engineering (improving efficiency and simplifying work methods), may result in human consideration being neglected or downplayed.

Behavioural aspects of job design

• Job enlargement or horizontal loading: A technique to relieve monotony and boredom that involves assigning workers additional tasks at the same level of responsibility to increase the number of tasks they perform.

• Job rotation: another technique to relieve monotony and boredom that involves systematically moving employees from one job to another. This benefits the company too because it creates more versatile, multi-skilled workers to can cover for one another.

• Job enrichment or vertical loading: any effort that makes an employee’s job more rewarding or satisfying by adding more meaningful tasks and duties. It involves autonomy and responsibility by allowing employees to assume a greater role in the decision making process.

• Enriching jobs can be accomplished through: o Increasing the level of difficulty and responsibility of the jobso Assigning workers more authority and control over outcomeso Providing feedback about individual or unit job performance directly to

employeeso Adding new tasks requiring training, thereby providing an opportunity for

growth. o Assigning individuals entire tasks or responsibility for performing a whole

job rather than only parts of it. • Job enrichment is not always the best approach in all environments• Team-based job deisgins: job designs that focus on giving a team, rather than an

individual, a whole and meaningful piece of work to do and empowering team members to decide among themselves how to accomplish the work. Best suited for flat or matrix organizational structures.

• Team: a small group of people, with complementary skills, who work together toward common goals for which they hold joint responsibility and accountability.

• Virtual teams: people working together effectively and efficiently across boundaries of time and space and using software to make them meetings more productive.

Ergonomic aspects of job design

• Ergonomics: an interdisciplinary approach that seeks to integrate and accommodate the physical needs of workers into the design of jobs. it aims to adapt the entire system—the work, the environment, machines, equipment, and processes—to match human characteristics. Came about in late 20th century.

o It can also aid in the meeting the unique requirements of individuals with special needs, such as older workers ad people with disabilities.

o Ergonomic considerations involved in the design of jobs, workstations, and office space are important to all employees not those just with special needs. It creates high work satisfaction for all.

Increasing job flexibility

• In the 21st century, the traditional meaning of “job” has changed. Companies are grappling with challenges such as rapid product and technological change, global competition, deregulation, political instability, demographic changes, and a shift to a service economy. This has increased the need for firms to be responsive, flexible, and much more competitive. In turn, the methods the managers use to accomplish this have weakened the meaning of “job”.

• All these changes have led to work to become more cognitively complex, more team-based and collaborative, more dependent on social skills, more dependent on technological competence, more time pressured, more mobile, and less dependent on geography.

The Nature of Job Analysis

• Once jobs are designed or redesigned, next is job analysis• Job analysis: Is the procedure for determining tasks, duties, and responisibilities

of each job, and the human attributes (in terms of knowledge, skills, and abilities) required to perform it.

• Once this info. has been gathered, it is used for the development of job descriptions: (what the job entails) and job specifications (what the human requirements are),

Uses of job analysis info

• Job analysis is sometimes called the cornerstone of HRM. • The information is gathered, evaluated, and summarized through job analysis is

the basis for a number of interrelated HRM activities. • Human resources Planning: knowing all actual requirements of jobs is essential

for planning future staffing needs. When information is combined with knowledge about the skills and qualifications of current employees, it is possible to determine which jobs can be filled internally and which cannot.

• Recruitment and selection: job description and job specification info. should be used to decide what sort of person to recruit and hire. Identifying bona fide occupational requirements and ensuring that all activities related to recruitment and selection (advertising, screening, and testing) are based on the requirements is necessary for legal compliance in all Canadian jurisdictions.

• Compensation: job analysis info is essential for determining the relative value of and appropriate compensation for each job. Job evaluation should be based on required skills, physical and mental demands, responsibilities, and working conditions—all assessed through job analysis. The relative value of jobs is one of the key factors used to determine appropriate compensation and justify pay differences if challenged under the human rights or pay equity legislation.

• Performance appraisal: to be legally defensible, the criteria used to assess

employee performance must be directly related to the duties and responsibilities identified through job analysis. Routine tasked jobs performance standards are determined through job analysis; more complex jobs, job standards are often jointly established by employees and supervisors.

• Labour relations: unionized environments—job descriptions are developed from the job analysis info. they generally must be subject to union approval. Union-approved job descriptions then become the basis for classifying jobs and bargaining over wage, performance criteria, and working conditions.

• Training, development and career management: by comparing the knowledge, skills, and abilities (KSAs) that employees bring to the job with those that are identified by job analysis, managers can determine gaps that require training programs. Also allows for job advancement.

• Job design: job analysis is useful for ensuring that all of the duties having to be done have actually been assigned and for identifying areas of overlap. Having an accurate description of each job sometimes leads to the identification of unnecessary requirements, areas of conflict or dissatisfaction, and/or health and safety concerns that can be aliminated through job redesign. Redesign may increase morale and productivity and ensure compliance with human rights and occupational health and safety regulations.

Steps in Job Analysis

• Six steps involved in analyzing jobs:1. Identify the use to which the info will be put, since this will determine the

types of data collection techniques used (interviewing employees and asking what the job entails and what their responsibilities are—good for writing job descriptions and selecting employees). Numerical techniques can be used to rate each job (used to compare jobs for compensation).

2. Review relevant background info. (organization charts, process charts, existing job descriptions). Process chart: a diagram showing the flor of inputs to and outputs from the job under study.

3. Select the representative positions and the jobs to be analyzed. Necessary when there are many incumbents in a single job and when a number of similar jobs are to be analyzed.

4. Analyze the jobs by collecting data on job activites, required employee behaviours, working conditions, and human traits and abilities needed to perform the job.

5. Review the info. with job incumbents (employees and supervisors). 6. Develop a job description and job specification (two concrete products of

the job analysis).

Methods of collecting job analysis info.

• Requires a joint effort by an HR specialist, the incumbent, and the job supervisor. o HR specialist: observe and analyze the work being done and then develop

a job descrption and specification. o Supervisor and incumbent: fill out questionnaires. They review and

verify the jobs analyst’s conclusions regarding the job’s duties, responsibilities, and requirements.

Qulitative Job analysis techniques

• The interview: most widely used method for determining the duties and responsibilities of a job.

• Three types of interviews used to collect job analysis data: individual interviews, group interviews, and supervisory interviews.

• Most interviews follow a structured or checklist format. Job analysis questionnaires can also be given for the incumbents to fill out. They include questions on the general purpose of the job, responsibilities and duties, the education, experience, and skills required, physical and mental demands and working conditions.

• Interview guidelines: o Job analyst and supervisor should work together to identify the employees

who know the job the best.o Rapport should be established quickly with the interviewee by using their

name, speaking clearly, briefly reviewing the purpose of the interview, and explaining how they were chosen.

o A structured guideline or checklist that lists questions and provides spaces for answers. Using this form makes it known that questions were pre-established, complete and accurate info was gathered, and that all interviewers glean the same type of data, therefore helping ensure comparability of results. Some open-ended questions should also be used.

o When the incumbents job isn’t the same routine everyday, they should be asked to list duties in order of importance and frequency of occurance.

o The data should be reviewed and verified by both the interviewee and their supervisor.

• Questionnaires: having employees fill out questionnaires to describe their job-related duties and responsisbilities.

o Must determine how structured the questionnaire should be and what questions to include (some involve structured checklists other are open-ended).

• Observation: direct observation useful when jobs consist of mainly observational activities. Not appropriate for jobs that include mental activities. Direct observation and interviewing are often used together.

• Participant diary/log: daily listings made by employees of every activity in which they engage, along with the time each activity takes.

• Advantages and disadvantages of qualitative methods: most popular methods for gathering job analysis data and they provide realistic info about what job incumbents actually do and the qualifications and skills required. By combining two or more qualitative techniques, some disadvantages can be overcome.

Quantitative job analysis techniques

• Used to compare pay purposes• Position Analysis Questionnaire (PAQ): very structured questionnaire used to

collect quantifiable data concerning the duties and responsibilities of various jobs. • It contains 194 items, each of which represents a basic element that may or

may not play and important role in the job. The job analyst decides whether each item plays a role in the job and if so to what extent.

• The advantage of a PAQ is that it provides a quantitative score or profile of the job in terms of how that job rates on six basic dimensions:

1. Information input2. Mental processes3. Work output (physical activities and tools)4. Relationships with others5. Job context (physical and social environment)6. Other job characteristics (pace and structure)

• The PAQs real strength is classifying jobs—results can be used to compare jobs with one another, then used to determine appropriate pay

• Functional Job Analysis (FJA): a quantitative method for classifying jobs based on types and amounts of responsibilities for data, people, and things. Performance standards and training requirements are also identified.

• National occupational classification (NOC): a reference tool for writing job descriptions and job specifications. Complied by the federal government, it contains comprehensive, standardized descriptions of about 30,000 occupations and the requirements for each. It is the product of systematic, field-based research by Human Resources and Skills Development Canada (HRSDC).

o The NOC and its counseling component, the Career Handbook both focus on occupations rather than jobs.

o Occupation: a collection of jobs that share some or all of a set of main duties.

o The NOC classifies occupations into Major Groups based on two key dimensions: skill level and skill type. These Major Groups are then broken down into Minor Groups and then into Unit Groups.

Internet-based job analysis

• Most of these job analysis methods suffer from one or more problems. Face-to-face interviews and observations can be slow and time consuming and is difficult to update quickly. Therefore internet based analysis of using web surveys are becoming more common.

Using multiple sources of job analysis info.

• Job analysis should be collected from multiple sources as a single source can be

bias and lead to inaccurate conclusions

Job descriptions

• Job description: a written statement of a list of the duties, responsibilities, reporting relationships, and working conditions of a job—one product of job analysis.

o Most include: Job identification Job summary Relationships Duties and responsibilities Authority of incumbent Performance standards Working conditions Job specifications (human qualifications)

• Job identification: the position title (president, manager, entry-level), the department and location, along with title of immediate supervisor.

• Job summary: the general nature of the job, listing only its major functions or activities.

o Develop, recommend, and implement approved HRM strategies, policies, and practices that will facilitate the achievement of the company’s stated business and HRM objectives.

• Relationships: indicates jobholder’s relationship with others inside and outside the organization.

• Duties and Responsibilities: presents a detailed list of the job’s major duties and responsibilities. Should be listed separately and in a few sentences.

o One thing that should never be included is a ‘cop-out clause’ this phrase leaves open the nature of the job and the people needed to staff it, and it can be subject to abuse.

• Authority: define the limits of the jobholder’s authority, including decision-making authority, direct supervision of other employees, budgetary limitations.

• Performance standards/indicators: indicates the standards the employee is expected to achieve in each of the job description’s main duties and responsibilities. One straightforward way of setting standards is to finish the statement: “I will be completely satisfied with your work when…”

• Working conditions and physical environment: general working conditions listed. Info about noise level, temperature, lighting, degree of privacy, frequency of interruptions, hours of work, amount of travel, and hazards.

• Job descriptions and human rights legislation: requires employers to ensure that there is no discrimination on any of the prohibited grounds in any aspect of terms and conditions of employment. To ensure that job descriptions comply with this legislation, key few points should be kept in mind:

o Job descriptions are not legally required but highly advisable

o Essential job duties should be clearly identified in the job description. Indicating the percentage of time spent on each duty and/or listing duties in order of importance are strategies used to differentiate between essential and non-essential tasks and responsibilities

o When assessing sustainability for employment, training program enrollment, and transfers or promotions, and when appraising performance, the only criteria examined should be knowledge, skills, and abilities (KSAs) required for the essential duties of the job

o When an employee cannot perform one or more of the essential duties because of reasons related to a prohibited ground, such as physical disability or religion, reasonable accommodation to the point of undue hardship is required.

Job specifications

• Job specification: a list of the “human requirements,” that is, the requisite knowledge, skills, and abilities, needed to perform the job—another product of job analysis.

o It clarifies what kind of person to recruit and for which qualities that person should be tested. It is sometimes included with the job description.

o Keep in mind to comply with the human rights legislation: All listed qualifications are bona fide occupational requirements

(BFORs) based on the current job duties and responsibilities Unjustifiably high educational and/or lengthy experience can lead

to systematic discrimination The qualifications of the current incumbent should not be confused

with the minimum requirements, since he or she might be underqualified or overqualified

For entry-level jobs, identifying the actual physical and mental demands is critical.

• Physical demands analysis: identification of the senses used and the type, frequency, and amount of physical effort involved in a job. Often used to supplement the job specification.

• Identifying human requirements for a job can be accomplished through a judgmental approach or statistical analysis (more legally defensible).

• Personality-Related Position Requirements Form (PPRF): survey instrument deigned to assist managers in identifying potential personality-related traits (agreeableness, conscientiousness, emotional stability) that may be important to the job.

• Completing the job specification form: once human characteristics determined, a job specification form should be completed.

Competency-based job analysis• Writing job descriptions based on competencies rather then duties. • Competencies: demonstrable characteristics of a person that enable performance

of the job. • Job competencies: are always observable and measurable behaviours • Competency based job analysis: describing a job in terms of the measurable,

observational behavioral competencies an employee must exhibit to do a job well done. Focuses on the “how” the worker meets the job’s objectives.

• Three reasons to use competency analysis: 1. Traditional job descriptions may actually backfire if a high-performance work

system is your goal. 2. Describing the job in terms of the skills, knowledge, and competencies the

worker needs is more strategic. 3. Measurable skills, knowledge, and competencies support the employer’s

performance management process. • General or core competencies, leadership competencies, and technical/task/functional competencies

Chapter 8: Recruitment

Recruitment : The process of searching out and attracting a qualified job applicants; which begins with the identification of a position that requires staffing and it is completed when resumes or applications forms are received from adequate number of applicants .

Employer branding: the image or the impression of an organization as an employer based on the benefit of being employed by the organization.

Recruitment process: - Determine the recruitment methods Obtain applicationsIdentify job opening (Through HR planning based on the organization strategic plan or manager request) Specify job requirements (job description and specification) Select the method of recruitment (internal & external) Generate pool of qualified applicants (employment equity and org diversity goals).

Internal recruitment:Advantages: EE is familiar with ORG and culture, lower costs, EE has proven their ability, improves work place morale and motivations. Disadvantages: internal rivalry, no new blood, poor morale of ees who are not selected.

Job posting: the process of notifying current employees about a vacant positions; which can be found on the company’s intranet (job title, duties, qualifications, hours of work, pay range, posting date, and closing date).

External recruitment: Advantages: can acquire skills that are not available within the ORG, newer ideas may emerge. Disadvantage: newcomers may not fit, need to learn about the ORG and its culture, more cost, lower morale of EE who do not see career growth within the firm.

Yield ratio: the percentage of applicants that proceed to the next stage of the selection process.

External recruitment methods: Online recruitment (internet job boards which are fast and easy, corporate website),social networking sites, print advertising, private employment agencies, executive search firms, walk and write-ins, employee’s referral, former employees, educational institution, HR and skills development Canada, professional and trade association, labour organization, military personnel, open houses and job fares.

Constraints on recruitment: are costs, inducements, ORG policies, HR planes, diversity management, recruiter habits, environmental conditions, job requirements. ORG policies:

• Promote from within policies (gives present employees the first opportunity)

• Compensation policies (need to adhere to state a pay range). • Employment status policies (unionized settings may restrict hiring

hard time temporary and contract employees. Or who with second jobs).

• International hires policies (hiring local citizens)

Constraints on Evaluate the recruitment sources: 1. Cost per hire 2. Time lapse (ratio of hires, ratio of offers,(account as the quality of

applicants), ratio of the qualified applicants, ratio of accepted ), 3. performance of hires 4. turnover 5. diversity and equity issues.

Chapter 9- Selection

1) Strategic Importance of Employee Selection2) The Selection Process3) Reliability and Validity4) Tests of Cognitive Abilities5) The Selection Interview6) Common Interviewing Mistakes7) Conducting an Effective Interview8) Background Investigation/Reference Checking

Strategic Importance of Employee Selection

­ Selection is the process of choosing among individuals who have been recruited to fill existing or projected job opening.

­ Suggested guidelines (6) for avoiding negative legal consequences during selection, and finding the best employees:

­ 1) Ensure that all selection criteria and strategies are based on the job description and job specification

­ 2) Adequately assessing the applicant’s ability to meet performance standards/ expectations

­ 3) Carefully scrutinizing all information supplied on application forms/resumes­ 4) Obtaining written authorization for reference checking, and checking these 

references very carefully­ 5) Saving all records and information obtained about the applicant during each 

stage of the selection process­ 6) Rejecting applicants who make false statements on their applications/ resumes

The Selection Process

­ Most firms use a sequential selection system involving a series of successive steps called a multiple­ hurdle strategy

­ Only candidates clearing the “hurdle” move on to the next step­ The 6 steps are: ­ 1) Preliminary applicant screening­ 2) Selection testing­ 3) Selection interview­ 4) Background investigation/ reference checking­ 5) Supervisory interview and realistic job preview­ 6) Hiring decision and candidate notification

The Importance of Reliability and Validity

Reliability

­ Reliability is the degree to which interviews, tests and other selection procedures yield comparable data over time

­ Reliability is the degree of dependability, consistency or stability of the measure 

used

Validity

­ Validity is the accuracy with which a predictor measures what it is intended to measure

­ Differential validity is the confirmation that the selection tool accurately predicts the performance of all possible employee subgroups (white males, women, visible minorities, disabilities, etc)

­ Criterion­related validity is the extent to which a selection tool predicts of significantly correlates with important elements of work behavioris the extent to which a selection instrument, such as a test adequately samples the knowledge and skills needed to perform the job

Tests of Cognitive Abilities

­ Tests used to ensure validity of selection

Intelligence Tests (IQ Test)

­ Tests that measure general intellectual ability, such as verbal comprehension, inductive reasoning, memory, numerical ability, speed of perception, spatial visualization and word fluency

­ Score is a derived score, and reflects the extent to which the person is above or below the “average” adult intelligence score.

Emotional Intelligence Tests

­ Measure ability to monitor one’s own emotions and the emotions of others and to use that knowledge to guide thoughts/actions

­ Someone with high emotional quotient is self­aware, controls impulses, is self­motivated and demonstrates empathy and social awareness.

­ Believed to be a more important determinant of success than IQ test

Specific Cognitive Abilities

­ Measures of specific thinking skills­ Tests in the category are often called aptitude tests­ Aptitude tests measure an individual’s aptitude or potential to perform a job, 

provided he or she is given proper training

­ Other tests that may be completed before selection include:

1) Test of motor/physical abilities2)  Personality and interests3) Achievement Tests (measure knowledge/ proficiency acquired through 

education, training or experience)4) Work Sampling 5) Situational Testing6) Physical Examination and Substance Abuse Testing

The Selection Interview

­ The selection interview is a procedure designed to predict future job performance on the basis of applicant’ oral responses to oral inquiries

­ Considered to be one of the most important aspects of the selection process­ Interviewers assess applicants’ qualifications, behaviours and interpersonal skills­ Job applicants present a positive image of themselves, sell their skills and gather 

information about the job/organization

Types of InterviewsThe Structure of the Interview

­ An unstructured interview  is a conversational­style interview. The interviewer pursues points of interest as they come up in response to questions. They have low reliability and validity

­ A structured interview is an interview that follows a set sequence of questions. The questions are pre­determined and job related. High in validity and reliability. 

­ A mixed (semi­structured) interview combines the structured and unstructured techniques. This is an extremely popular technique.

Content of the Interview

­ A situational interview is a series of job­related questions that focus on how the candidate would behave in a given situation

­ A behavioural description interview is a series of job relevant questions that focus on relevant past job­related behaviours

Administering the Interview

­ Can be one­on one or by a panel of interviewers­ Can be sequentially or all at once­ Can be face­to­face or using videoconferencing

Common Interviewing Mistakes

Poor Planning

­ Interview   is   not   carefully   planned,   and   without   questions   being   written   in advance. This lack of planning can lead to an unstructured interview, which is less reliable and valid.

Snap Judgments

­ Interviewers tend to jump to conclusions during the first few minutes of the interview

Negative Emphasis

­ Many interviewers seem to have a consistent negative bias. They are therefore more   influenced   by   unfavourable   than   favourable   information,   rather   than focusing on the positive aspects.

Halo Effect

­ The halo effect   is  when a positive initial   impressions distorts  an interviewer’s rating of a candidate because subsequent information is judged with a positive bias.

Poor Knowledge of the Job

­ If the interviewer does not know precisely what the job entails and what sort of candidate is best suited, then they usually make their decision based on incorrect stereotypes

Contrast Error

­ Also known as candidate­order error­ Is a error of judgment on the part of the interviewer because of interviewing one 

or more very good or very bad candidates just before the interview in question

Influence of Nonverbal Behaviour

­ The more eye contact, head moving , smiling, etc = the higher rating­ This   is   a   concern  because  nonverbal   behavior   is   linked   to   ethnicity/   cultural 

background­ An applicants gender/ level or attractiveness could also play a role

Telegraphing

­ Some interviewers are so anxious to fill  a  job that  they help the applicants  to respond correctly to their questions by telegraphing the expected answer

­ Example “This job calls for a lot of stress, you can handle that, can you not?”

Similar-to-Me Bias

­ Interviewers tend to provide more favourable ratings to candidates who possess demographic, personality, and attitudinal characteristics similar to their own

Conducting an Effective Interview

Planning the Interview

­ Before the interview, the procedure that will be followed must be decided­ Who will ask which questions, what order will they be asked in, etc.­ Write questions 

Establishing Rapport

­ The main reason for an interview is to find out as much as possible about the candidate’s fit with the job specifications, something that is difficult to do if the individual  is tense and nervous. The candidate should be greeted in a friendly member and put at ease.

Asking Questions

­ The questions written in advance should be asked in order­ Interviewer   should   listen   carefully,   encourage   the   candidate   to   fully   express 

themselves, and take note of their answers­ Taking  notes   increases   the  validity  of   the   interview process  as   it   reduces   the 

likelihood of forgetting job­relevant information reduces the likelihood of snap judgments, halo effect, negative emphasis and candidate­order errors as well as helps to ensure that all candidates are assessed on the same criteria

Closing the Interview

­ Time should be allocated to answer any questions that the candidate may have

Evaluating the Candidate

­ The   applicant’s   interview   performance   should   berated   immediately   following each interview

Background Investigation/ Reference Checking

­ Background investigation and reference checking are used to verify the accuracy of the information provided by candidates on their application forms/resumes

­ A   basic   background   check   includes   a   criminal   record   check,   independent verification   of   educational   qualifications,   verification   of   at   least   five   years’ employment, sometimes a credit check

­ Written permission should be obtained to check references/ credit scores as a legal protection

Chapter 10 – Orienting and Training of Employees• The purpose of and orientation program is to provide background information 

about the employer and specific info needed to perform the job

• Orientation is part of Socialization

• Reality Shock – the discrepancy between an employee’s expectations and reality

• Orientation Checklist 

o Employment Documentation – Payroll benefit paperwork is signed

o Intro and welcome – Key coworkers, supervisor, equipment, email

o Overview of department and equipment has been reviewed

o Employee is familiarized with work station

o Departmental policies and procedures reviewed

o Workplace safety reviewed

• Special Orientation Situations

o Diverse work force – org. with diversity for the first time

o Mergers and acquisitions – employee must be made aware of difficulties, and the new culture

o Union vs. Non­Union Employees – must be made aware of union pay deduction and union steward

o Multi­level org. – employees must have same info regardless of fiscal location

• Evaluation of Ori. Program

o Employee reaction – interview or survey new employee

o Socialization effect  ­ Review new employees at regular intervals to assess progress

o Cost/Benefit Analysis – Compare orientation cost with benefit of reduced errors and increased productivity

• When training it is useful to know if employee is audio, visual, or kinesthetic

• The five step training process 

o Need Analysis – includes analysis of required tasks, performance needs, and training objectives

o Instruction Design – gather tools (videos, booklets, etc)

o Validation – Test program 

o Implement with trainee

o Evaluation and follow up

• Training for Special Purposes 

o Literacy and Essential Skills Training

o Diversity Training

o Customer Service Training

o Training for Teamwork

o Customer Service Training

o Training for Teamwork

o Training for First­Time Supervisor/Managers

o Training for Global Business

Chapter 11: Career Development pgs 264-281

CAREER PLANNING AND DEVELOPMENT

-career planning has become a critical strategic issue for CEOs and boards of

directors-career planning and development: the deliberate process through which a person becomes aware of personal career-related attributes and the lifelong series of activities that contribute to his or her career fulfillment-plays a significant role in retaining employees and reducing employee turnover-career: a series of work-related positions, paid or unpaid, that help a person grow in job skills, success, and fulfillment-career development: the lifelong series of activities (such as workshops) that contribute to a person's career expiration, establishment, success, and fulfillment-career planning: the deliberate process through which a person becomes aware of personal skills, interests, knowledge, motivations, and other characteristics; acquires information about opportunities and choices; identifies career-related goals; and establishes action plans to attain specific goals

Roles in Career Development-an individual must accept responsibility for his/her own career, requiring an entrepreneurial approach using 4 key skills:

-self-motivation-independent learning-effective time and money management-self-promotion

-networking: an organized process whereby the individual arranges and conducts a series of face-to-face meetings with his/her colleagues and contacts plus individuals they recommend

-objectives: to let people know about background and career goals, and to exchange information, advice, and referrals

-doesn't involve asking for a job-is not a one-sided encounter where only one individual benefits, it is a

mutual sharing process-the foundation of active career management-is essential for accessing the most valuable career resource: PEOPLE

*PERSONAL NETWORKING CHART SEEN ON PAGE 265 (FIGURE 11.1)*-within the organization, the individual's manager plays a role too by:

-providing timely and objective performance feedback-offering developmental assignments and support-participating in career-development discussions-acting as a coach, appraiser, advisor, and referral agent

Factors that Affect Career Choices1. Identify career stage

-growth stage-exploration stage-establishment stage-maintenance stage-decline stage

2. Identify occupational orientation: the theory (developed by John Holland)

that there are 6 basic personal orientations that determine the sorts of careers to which people are drawn

-realistic-investigative-social-conventional-enterprising-artistic

3. Identify skills and aptitudes4. Identify a career anchor: a concern or value that you will not give up if a choice has to be made

-technical/functional-managerial competence-creativity-autonomy and independence-security-service/dedication-pure challenge-lifestyle

Responsibilities of the Organization-provide realistic job previews-avoid reality shock-provide challenging initial jobs-be demanding-provide periodic developmental job rotation-provide career-oriented performance appraisals-provide career-planning work shops: a planned learning event in which participants are expected to be actively involved in career-planning exercises and career-skills practice sessions-provide opportunities for mentoring: an experienced individual teaches and trains another person who has less knowledge in an area-become a learning organization: an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behaviour to reflect new knowledge and insights

MANAGING TRANSFERS AND PROMOTIONS

Managing Transfers-used as a way to give employees opportunities for diversity of job assignment, and therefore, personal and career growth-offers greater possibility for opportunities for personal enrichment or jobs that are more interesting/convenient (better hours, location)-gives employees exposure to a wide range of jobs

Making Promotion Decisions

-employers must decide on the criteria on which to promote employees-decision 1: is seniority or competence the rule?

-promotion based on competence is best-some union agreements emphasize seniority meaning only substantial

differences in abilities are taken into account-decision 2: how is competence measured?

-defining and measuring past performance-also predict future potential

-decision 3: is the process formal or informal?-informal: the availability and requirements of open positions are kept

secret-decision 4: vertical, horizontal, or other career path?

MANAGEMENT DEVELOPMENT

-management development: any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills

Succession Planning-succession planning: a process through which senior-level and critical strategic job openings are planned for and eventually filled-traditionally been focused on management jobs, but many organizations today include other positions

On-the-Job Management-Development Techniques-on the job training is one of the most popular development methods1. Developmental job rotation: a management-training technique that involves moving a trainee from department to department to broaden his/her experience and identify strong and weak points

-the trainee may work for several months in each department-also helps the trainee discover which jobs he/she prefers-helps prevent stagnation through the constant introduction of new points of

view in each department2. Coaching/understudy approach

-trainee works directly with (and gets trained by) the person that he/she is to replace

-the trainee relieves the execution of certain responsibilities and learns the job by doing it3. Action learning: a training technique by which management trainees are allowed to work full-time, analyzing and solving problems in other departments

-releases managers from their regular duties-gives trainees real experience with actual problems-main drawback: releases trainees to work on outside projects, losing the

full-time services of a competent manager

Off-the-Job Management-Development Techniques1. Case study method: a development method in which a trainee is presented with a written description of an organizational problem to diagnose and solve

-gives the trainee realistic experience-can be subtly guided by a trained leader-uses actual scenarios from the trainees' own firms to help ensure they

understand the background of the case2. Management games: a computerized development technique in which teams of managers compete with one another by making decisions regarding realistic but simulated companies

-examples of decisions needed to be made in these games:-how much to spend on advertising-how much to produce-how much inventory to maintain-how many of which product to produce

-people learn best by getting involved-helps trainees to develop problem-solving skills and leadership skills

3. Outside seminars-provide skill-building training for managers

4. College/university-related programs-executive-development programs: programs that use lectures to provide

senior-level managers with the latest management skills-individualized courses: take these to fill gaps in their backgrounds

-example: accounting, business management-degree programs: geared especially to middle managers and above who

take the course on weekends-many employers offer tuition refunds as an incentive

5. Role-playing: a training technique in which trainees act as the parts of people in a realistic management situation

-to solve the problem at hand and thereby develop skills in areas like leadership and delegation

-trains a person to be aware of and sensitive to the feelings of others-drawback: may take long to complete, people feel it is childish, people

don't enjoy acting6. Behaviour modelling: a training technique in which trainees are first shown good management techniques, then asked to play roles in a simulated situation, and finally given feedback regarding their performance

a) modellingb) role-playingc) social reinforcementd) transfer of training

7. In-house development centres: a company-based method for exposing prospective managers to realistic exercised to develop improved management skills

-usually combine classroom learning with other techniques

EXECUTIVE DEVELOPMENT

-canada is facing a shortage of leadership talent, however leadership values are evolving-typical "command and control" leadership is losing effectiveness-growing need for leaders who can listen to others and tolerate mistakes-many companies are trying to enhance learning from others by providing one-on-one executive coaching by independent coaches are part of the executive development process

Chapter 12• Performance Management  process encompassing all activities related to 

improving employee performance, productivity and effectiveness

• Performance Management Process

1. Define goals and expectations

2. Provide ongoing feedback  and coaching (through two way communication)

3. Conduct performance appraisals and evaluation discussions (at specific intervals)

4. Determine rewards/consequences (promotions, salary increases, bonuses)

5. Conduct career development opportunities and discussions (annually)

• Appraisal Methods

o Graphic Rating Scale  lists a number of traits and a range of performance for each. Employee is rated by identifying the score that best describes his/her performance for each trait

o Alternation Ranking Method  ranking employees from best to worst on a particular trait

o Paired Comparison Method  ranking employees by making a chart of pairs and selecting the best employee of the pair

o Forced Distribution Method  predetermine percentages of rates placed in various performance groups

o Critical Incident Method  keeping record of uncommonly good or bad 

examples of an employee’s work related behavior and reviewing the list with the employee at specific times

o Narrative Forms  evaluating and employee based on his/her answers to a given scenario

o Behaviorally Anchored Rating Scale  combines benefits of narratives, critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and bad performance

1. Generate critical incidents (people who have knowledge of effective and ineffective performance for the specific job being appraised)

2. Develop performance dimensions (cluster into smaller sets to be “defined”)

3. Reallocate incidents (add in other well informed people and assign to different cluster definitions)

4. Scale incidents (new additions evaluate the cluster behavior in terms of effective or ineffective performance)

5. Develop final instrument (using a subset of incidents for behavior anchors)

o Management by Objectives  setting specific measurable goals with each employee and periodically reviewing progress made

1. Set organizational goals

2. Set departmental goals

3. Discuss departmental goals

4. Define expected results

5. Performance reviews

6. Provide feedback

o Electronic Performance Monitoring  supervisors electronically monitor the amount of computerized data an employee processes per day to indicate performance

• Rating Scale Problems

o Unclear Performance Standards  appraisal scale is too open to interpretation of traits and standards

o Halo Effect  supervisor rates an employee on one trait biases the rating of the person on other traits

o Central Tendency  rating all employees in the middle of the scale

o Strictness/Leniency  rating all employees very high or very low

o Appraisal Bias  allowing individual differences (age, race, sex) to affect appraisal ratings

o Recency Effect  rating are based on the employees most recent performance rather than the work throughout

o Similar­to­me Bias  giving higher performance ratings to employees who are to be similar to the rater

• Legal and Ethical Appraising

1. Conduct a job analysis for desired characteristics

2. Incorporate characteristics into a rating instrument

3. Make definitive performance standards for both raters and ratee

4. Use clearly defined individual dimensions for job performance

5. Avoid abstract trait names (loyalty, honesty) for graphic rating scales

6. Employ subjective supervisory ratings (essays) as only one component of overall appraisal process

7. Train supervisors to use rating instrument properly

8. Allow appraisers regular contact with the evaluated employee

9. Have more than one appraiser

10. Utilize formal appeal mechanisms and review ratings

11. Document evaluations and reasons for termination

12. Provide corrective guidance to assist poor performers

• Appraisers

o Supervisors

o Peers

o Committees

o Self 

o Subordinates

o 360 Degree Appraisal  technique using multiple raters (peers, subordinates, supervisors and customers)

• Appraisal Interview  where the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths

o Satisfactory – Promotable 

o Satisfactory – Not Promotable

o Unsatisfactory – Correctable

• How to Conduct the Interview

1. Be direct and specific

2. Do not get personal (comparisons)

3. Encourage the employee to talk

4. Develop an action plan

• Handling Criticism and Defensive Employees

1. Recognize defensive behavior is normal

2. Never attack the person’s defenses

3. Postpone action

4. Recognize human limitations

• Ensuring Improved Performance

1. Let the employee be aware of unacceptable performance and explain minimum expectations

2. Ensure expectations are reasonable

3. Let employees know warnings can lead to discharge if minimum standards are not met

4. Ensure you prompt corrective measures when required

5. Avoid sending mixed messages

6. Provide reasonable amount of time to improve performance

7. Be prepared to provide necessary support to facilitate improvement

Chapter 13Theories of motivation

What is motivation?­ Motivation is defined as the intensity direction and persistence of effort a person 

shows in reaching a goal­ Theory X is the assumption that employees dislike work, will attempt to avoid it, 

and must be coerced, controlled, or threatened to achieve goals­ Theory Y is the assumption that employees like work, are creative, seek 

responsibility, and will exercise self direction and control if they are committed to their objectives

­ Intrinsic Motivators are a persons personal desire to do something, due to such things as interest, challenge and personal satisfaction

­ Extrinsic motivators come from outside the person and includes pay, bonuses, and other tangible rewards

Theories of motivation

Needs Theories­ Describe the types of needs that must be met to motivate individuals

­ Maslow’s hierarchy of needso Hierarchy of 5 needs from bottom to top; Physiological, safety, social, 

esteem, self­actualizationo As each need becomes satisfied the next need becomes more dominant 

­ ERG Theory o Similar to Maslow’s except not a rigid hierarchy and based on three 

groups of core needs; Existence, Relatedness, Growth­ Motivation Hygiene Theory

o A theory that relates intrinsic factors to job satisfaction and extrinsic factors with dissatisfaction 

­ McClelland’s Theory of Needso Based on three needs; need for achievement, need for power, and need for 

affiliationProcess Theories­ Help us understand the actual ways others can be motivated

­ Expectancy Theoryo A theory that individuals act depending on their evaluation of whether 

their effort lead to good performance, whether their good performance will be followed by a given outcome and whether or not that outcome is attractive to them

o Based on Expectancy (effort  performance), Instrumentally (performance  rewards), Valence (Rewards Personal goals)

­ Goal setting Theoryo Based on setting goals for employees to reach ex. Get at least a 75% on 

this upcoming test instead of do your besto Goals direct attention, regulate effort, increase persistence, and encourage 

the development of strategies and action planso In order for goals to be effective the must be Specific, Measurable, 

Attainable, Results oriented, Time bound (S.M.A.R.T.)­ Self­Efficacy Theory 

o Compliments goal setting theoryo Make sure employee is capable of accomplishing the given task  ex if an 

employee is given a task that they deem is to hard they are likely to give up

o There are 4 ways to increase self efficiency ; Enactive mastery, vicarious modeling, verbal persuasion,  and arousal.

­ Equity Theory o Considers that individuals compare their job inputs and outputs with those 

of others and then respond to eliminate any inequities ­ Cognitive evaluation theory

o Suggests offering extrinsic rewards fir work effort that was previously rewarding intrinsically will decrease the overall level of an individuals motivation

Types of justice­ Distributive: the perceived fairness of the amount and allocation of rewards 

among individuals­ Organizational: an overall perception of what is fair on the workplace , composed 

of distributive, procedural, and interactional­ Procedural: the perceived fairness of the process used to determine the 

distribution of rewards­ Interactional: the quality of the interpersonal treatment received from a manager

Types of reinforcementType ExamplePositive Praise from managerNegative Student looking through notes to look busy

after instructor asks question to not be

called uponPunishment Suspension without pay from work Extinction Instructor ignores students who put up their

hands so eventually no one will put up their hand

Continuous Compliment after every time a desired behavior is performed

Fixed/variable interval Fixed: weekly paycheck Variable: pop quizzes

Fixed/variable ratio Fixed: piece rat payVariable: commissioned sales

Chapter 14: Motivation in Action

Variable-pay program: A reward program in which a portion of an employee’s pay is based on some individual and/or organizational measure of performance

Individual-Based IncentivesPiece-rate pay plan: An individual-based incentive plan in which employees are paid a fixed sum for each unit of production completed

Merit-based pay plan: An individual-based incentive plan based on performance appraisal ratings

Bonus: An individual-based incentive plan that rewards employees for recent performance rather than historical performance

Skilled-based pay: An individual-based incentive plan that sets pay levels on the basis of how many skills employees have or how many jobs they can do

Group-Based Incentives Gainsharing: a group-based incentive plan in which improvements in group productivity determine the total amount of money to be shared

Organizational-Based IncentivesProfit-sharing plan: An organization-wide incentive plan in which the employer shares profits with employees based on a predetermined formula

Employee stock ownership plan (ESOP): A company-established benefit plan in which employees acquire stock as part of their benefits

Challenges to pay-for-performance programs:• Teamwork      

• Unions• Public sector employees• Ethical considerations

Flexible Benefits: A benefits plan that allows each employees to put together a benefits package individually tailored to his or her own needs and situation

Creating a Motivating Work Environment-Abolish incentive pay-Re-evaluate Evaluation-Create the conditions for authentic motivation-Encourage collaboration-Enhance content-Provide choice

Job design: How tasks are assigned to form a job

Job rotation: The periodic shifting of an employee from one task to another

Job enlargement: The horizontal expansion of jobs

Job characteristics model (JCM): A model that identifies five core job dimensions and their relationship to personal and work outcomes

Job enrichment: The vertical expansion of jobs

Core Job Dimensions:

Skill variety: The degree to which the job requires a variety of different activities

Task identity: The degree to which the job requires completion of a whole and identifiable piece of work

Task significance: The degree to which the job has a substantial impact on the lives or work of other people

Autonomy: The degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out

Feedback: The degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.

Critical Psychological States

-Experienced meaningfulness: The model that predicts of an employees task is meaningful, the employee will view the job as important, valuable, and worthwhile-Experienced responsibility for outcomes: Employees feel a sense of personal responsibility for results when their jobs give them greater autonomy-Knowledge of the actual results: Feedback helps employees know whether they are performing effectively

Motivating potential score (MPS): A predictive index suggesting the motivation potential in a job

Computing a motivating potential score:MPS = [skill variety + task identity + task significance/3] x autonomy x feedback

Compressed workweek: A four day week, with employees working 10 hours a day; or nines days of work over two weeks

Flextime: an arrangement where employees work during a common core period each day but can form their total workday from a flexible set of hours outside the core

Job sharing: The practice of having two or more people split a 40-hour-a-week job

Telecommuting: an arrangement where employees do their work at home on a computer that is linked to their office

How to fulfill the drives that motivate employeesDrive: Primary Lever: Actions:

1) Aquire Reward System -Tie rewards clearly toperformance-Pay as well as your

competitors

2) Bond Culture -Value collaboration & teamwork

-Encourage sharing of best practices

3) Comprehend Job Design -Design jobs that have distinct & important

roles in the organization

4) Defend Performance Management & -Emphasize their fairnessResource Allocation Processes -Increase the transparency

of all processes

Chapter 15-Strategic Pay Plans

Total Rewards: An integrated package of all rewards (monetary and nonmonetary, extrinsic and intrinsic) gained by employees arising from their employees.

The Components of Total Reward1. Compensation: Includes direct financial payment in the form of wages, salaries, 

incentives, commissions and bonuses. 2. Benefits: Includes indirect payments in the form of financial benefits, like 

employer paid insurance and vacations. 3. Work/Life Program: Relates to programs that help employees do their job 

effectively, such as telecommunicating, childcare, flexible scheduling, etc. 4. Performance and Recognition: Includes pay for performance programs.5. Development and Career Opportunities: Planning for the advancement and/or 

change in responsibilities to best suit individual skills, talents and desires. Examples of career enhancing programs; sabbaticals, coaching and mentoring opportunities, succession planning professional development, etc. 

Figure 1- The Total Rewards Model

Legal Considerations in Compensation

All jurisdictions in Canada have laws regulating compensation, legislations affecting compensations are as followed;

• Employment/Labour Standards Acts (Canada Labour Code): These laws set min. standards regarding pay including min. wage, max. hours, overtime, paid vacations, termination pay, etc. There are variations based on type of worker you are. 

• Pay Equity Acts: Enacted to redress historical undervaluation by providing equal pay for work of equal value. Not all Canadian jurisdictions have pay equity laws. 

• Human Rights Acts: Enacted laws to protect Canadians from discrimination on a number of grounds such as race, sex, age religion, etc. 

• Canada/Quebec Pension Plan: All employees and employers must contribute to the Canada pension plan.

Union Attitude toward Compensation• Unions believe that any system to evaluate jobs worth is a tool for management 

malpractice.  No one can evaluate a job better then the workers. • Unions believe that the managerial tactic to use many compensable factors such 

as degree of responsibility is a manipulative device for lowering pay. 

Compensation Policies• When developing policies, many factors are taken into consideration such as 

business strategy, cost of strategy and whether the business wants to be a leader or follower regarding pay.

• It is written by HR or compensation manager along with senior management• One crucial factor is determining equity, must compete with other organizations 

to obtain and retain employers. 

Establishing Pay RatesThree strategies in establishing pay rates are;

1. Determine the worth of jobs through job evaluation (internal).2. Conduct a wage/salary survey to compare yourselves with competitors (external). 3. Combine both job evaluations and surveys to determine pay.

Stage 1: Job EvaluationJob Evaluation: Systematic comparison to determine the relative wroth of jobs within a firm.

Benchmark Jobs: Job that is critical to a firms operations or commonly found in other

firms.

Compensable Factor: Fundamental, compensable element of a job such as skill, effort, responsibility and working conditions.

• Most employers’ use popularized packaged job evaluation system or legislation. In Canada, most pay equity acts focus on four factors; skill, effort, responsibility and working conditions. 

• Another method, popularized by the Hay Group consulting firm focuses on four other factors; know­how, problem solving, accountability and working conditions. 

• Job evaluation committees are put together to ensure representation of all points of view. This may include employees, HR staff, union reps. and managers. 

Classification/grading method: Method for categorizing jobs using different grades and classes. Grades are groups of jobs based on a set of rules for each grade. Classes are similar as each class follows a set of rules such as physical effort, skill and judgment.

Point MethodPoint Method: Job evaluation method in which a number of factors are identified, the degrees to which each id present and overall point value.

1. Preliminary Steps:  Must gather job descriptions and job specifications through a proper job analysis.  

2. Determine Factors Weight/Degrees: Decide on figure value of points to assign to each factor depending on sub­factors. 

3. Assign Points for Sub­Factors4. Evaluate the Jobs

Pay Grade: Comprises of jobs of approximately equal value.

Stage 2: Conduct Wage/Salary SurveyWage Survey: Survey aimed at determining prevailing wage rates, providing specific wage rates for comparable jobs. There are many ways to conduct these surveys;

• Surveying employment agencies• Informal communication with other employees• Reviewing newspaper and internet job ads• Buying commercial or professional surveys

Stage 3: Combine the Job Evaluation and Salary SurveyWage Curve: Graphic description of the relationship between the value of the job and the average wage paid for this job. Pay Ranges: Series of steps of levels within a pay grade, usually based on years or

service. Broadbanding: Reducing the number of salary grades and ranges into just a few wide levels or “bands”, containing a relatively wide range of jobs and salary levels. Red Circle Pay Rate: Rate of pay that is above the pay range maximum.

Chapter 17- Employee Benefits and Services• Employee Benefits: indirect financial payments given to employees. This may 

include health benefits, life insurance, vacation pension, or discounts on company products. 

• Most employees do not realize the market value and high costs benefits cost their employers. 

• Government­sponsored benefits include: 1) Employment Insurance­federal program that provides income benefits if a person is unable to work through no fault of their own. 2) Canada/Quebec Pension Plan­program that provides three types of benefits including retirement income, survivor or death benefits payable to employees and disability benefits. 3) Workers compensation­provides income and medical benefits to victims of work related accidents or illness. 4) Vacations and Holidays­minimum amount of paid vacation per year, most often two weeks. 5) Leaves of absence­ federal jurisdiction require unpaid leaves of absences to be provided to employees in certain circumstances for example, maternity leave. 6) Pay on Termination of Employment­ pay in lieu of notice(employee must be provided with advance written notice if employer is going to terminate), Severance Pay (In addition to pay in lieu of notice often is the employee has been working there for a long period of time or the employer is shutting down the business), Pay for mass layoffs (additional pay when laying off 50 or more people)

• Voluntary Employer­sponsored Benefits:  1)Life Insurance­all employers provide group life insurance(insurance provided at lower rates for all(new, regardless of health conditions) employees. 2) Supplementary Health­care/Medical Insurance­this insurance is over and above that provided by provincial health care plans. As well as employees often have to pay a deductible, this is the annual amount that must be paid before insurance benefits will be paid. 3) Short­term Disability Plans and Sick Leave Plans­pay given to employees when they are unable to work because of a non­work­related illness or injury. 4) Long­Term Disability­providing pay for employees when they have a long­term illness of injury that is non­work related. For example, mental health benefits. 5) Retirement plans­this includes ‘defined benefit pension plan’(contains formula for determining retirement benefits and ‘defined contribution pension 

plan’(employers contribution too employees retirement fund is specified). 

• Pension Plans: When designing a pension plans the legal and policy issues to keep in mind include: 1) membership requirements­ eg. How many years must an employee service a company. 2) Benefit Formula­ usually ties pension plan to final earnings. 3) Retirement age 4) Funding 5) Vesting­provision that employer money placed in a pension fund cannot be forfeited. 6) Portability­provision that employees who change jobs can transfer the lump­sum value of the pension they have earned to a locked­in RRSP or their new employer’s pension plan. 

• Phased Retirement: an arrangement whereby employees gradually ease into retirement by using reduced workdays and/or shortened workweeks

• Employee Services: 1) Personal services eg. Credit Unions (employees become members by purchasing a small share), counseling services (financial, family, career, and job placement are some examples), employee assistance plans(company sponsored program to help employees cope with personal problems), other personal services. 2) Job­related Services­ Helping employees perform their jobs eg. Subsidized Childcare, eldercare, subsidized employee transportation, food services, educational subsidies (tuition fees), family­friendly benefits (flexible work hours, daycare). 3) Executive Perquisites (perks)­examples include use of company jets, cars. 

• Flexible Benefits Programs: Individualized benefit plans to accommodate employee needs and preferences.  Advantages: 1) Employees choose packages that best satisfy their unique needs 2) Flexible benefits help firms meet the changing needs of a changing workforce 3) Increased involvement of employees and families improves understanding of benefits 4) Flexible plans make introduction of new benefits less costly. The new option is added merely as one among a wide variety of elements from which to choose 5) Cost containment­the organization sets the dollar maximum. Employee chooses within that constraint.  Disadvantages: 1) Employees make bad choices and find themselves not covered for predictable emergencies 2) Administrative burdens and expenses increase 3) Adverse selection­ employees pick only benefits they will use. The subsequent high benefit utilization increases its cost. 

• Benefits Administration: Keeping track of each employee and benefits can be a challenge. Its imperative to keep employees informed of the different benefits available. 

HROB Chapter 19

Communication- the transfer and understanding of a message between two or more people

Encoding- converting a message to symbolic formDecoding- interpreting a senders message The message- what is communicated The channel- the medium through which a message travels. (can be formal or informal)

Formal: items relating to the jobInformal: items that are considered personal

Communication Apprehension- undue tension and anxiety about oral communication, written communication or both (may be the reason why people choose one kind of communication strategy) Channel Richness- the amount of information that can be transmitted during a communication episode

High channel Richness: handle multiple cues simultaneously, facilitate rapid feedback and be very personal (better choice if message is non-routine)

Low channel Richness: cannot meet standards of high channel richness (better choice if message is routine)

• Managers have lately been relying on higher richness to deliver messages

that are of higher importance

Higher Channel Richness

Feedback loop- the final link in the communication process; it puts the message back into the system as a check against misunderstanding

• When the sender or receiver fails to engage in the feedback process,

communication is one way

• Two way communication involves both talking and listening

Context- using formal and informal communication in the proper situations. Ex. Bus stop is rather informal and at the work place is rather formal Filtering- a senders manipulation of information so that it will be seen more favourably by the receiver

• Occurs more as there are more levels of an organization, more chances for

filtering at each level

Selective Perception- we hear what we want to hear based on needs, motivations, experience and backgroundInformation Overload- the state of having more information than one can processLanguage- people have different perceptions of certain words as a result of different backgrounds and education. This can form a barrier for communicating throughout an organization when some employees do not have the same definition of a word as othersDirection of Communication:

• Downward- communication that flows from one level in an organization to a

lower level

• Upward- flows to a higher level in the group or organization

• Lateral- communication of members of the same work group, at the same level

(equivalent employees)

Communication Networks- channels by which information flowsFormal Networks- task related communications that follow the authority chainInformal Networks- communication that flow along social and relational linesGrapevine- the organizations most common informal network Liaison Individuals are people who consistently pass on information. Such as managers and executives.

The grapevine has 3 characteristics:- Not controlled by management- Most employees perceive it as more reliable than formal communiqués issued by upper management.- It is used to serve the self-interest of people within.

Lower Channel Richness

Electronic communication allows employees to be essentially “on call” 24/7.

Email can cause misinterpreted messages; in addition it is not the best method to transfer important information. Body language cannot easily be expressed via email. Often email’s are over used and can “flood” your inbox; as a result a majority of messages go straight to the junk folder. Lastly privacy is a big concern as emails are easily forwarded to other people.

The study of body motion is, called kinesics. Human emit a lot of different gestures and they all can be assessed to determine how a person is feeling or what they are thinking about.

Proxemics is the study of physical space in interpersonal relationships. (The way humans space themselves)

There are sometimes communication barriers between men and women. Men often try to emphasize status and independence, while women often try to create connection and intimacy. The difference between men and women can often cause communication problems in the workplace.

Cultural barriers can also be a problem as there are so many different cultures existing though various countries. Words can mean different things depending on the person. Tones and wording also can cause a miscommunication.

High-context cultures- Cultures that rely heavily on nonverbal and subtle situation cues in communication.

Low–context cultures- Cultures that rely heavily on words to convey meaning in communication.

Reducing misinterpretations in different cultures:- Assume differences until similarity is proven.- Emphasize description rather than interpretation or evaluation- Be empathetic (Put yourself in the recipients shoes)- Treat your interpretations as a working hypothesis (Ensure the recipient is understanding the idea you are trying to convey.)

Chapter 20

Trait theories of leadership: Theories that propose traits - personality, social, physical or intellectual - differentiate leaders from non-leaders.Behavioral theories of leadership: Theories that propose that specific behavior differentiate leaders from non-leaders.Initiating structure: The extent to which a leader is likely to define and structure

his or her role and the roles of employees in order to attain goals.Consideration: The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for employees’ ideas and regard for the their feelings.Employee-oriented leader: A leader who emphasizes interpersonal relations.Production-oriented leader: A leader who emphasizes the technical or task aspects of the job.Leadership grid: A two-dimensional grid outlining 81 different leadership styles.Situational or contingency theories: Theories that propose leadership effectiveness is dependent on the situation.Fiedler contingency model: A leadership theory that proposes effective group performance depends on the proper math between the leader’s style of interacting with his or her followers and the degree to which the situation gives the leader control and influence.Situational Leadership (SL): A leadership theory that focusses on the readiness of followers.Path-goal theory: A leadership theory that says its the leaders job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with overall objectives of the group or organization.Framing: A way of using language to manage meaningCharismatic leadership theory: A leadership theory that states that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors.Vision: A long term strategy for attain a goal or goals Vision statement: A formal articulation of an organizations vision or mission.Level 5 leaders: Leaders who are fiercely ambitious and driven, but their ambition is directed toward their company rather than themselves.Transactional leaders: Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirementsTransformational leaders: Leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers.Mentor: A senior employee who sponsors and supports a less-experienced employee.Authentic leaders: Leaders who know who they are, know what they believe in and value and act on these values and belief openly and candidly. Their followers could consider them to be ethical.Socialized charismatic leadership: A leadership concept that states that leaders convey values that are other-centered vs self-centered and who role model ethical conduct.Fiedler identified three contingency dimensions that together define the key situational factors for determining the leader effectiveness:• Leader-member relations: The degree of confidence, trust, and respect

members have for their leader.• Task structure: The degree to which job assignments are procedurized (that is,

structured or unstructured).• Position power: The degree of influence a leader has over power-based

activities such as hiring, firing discipline, promotion and salary increases.

According to path-goal theory, leaders should follow three guidelines to be effective:• Determine the outcomes subordinates want. These include good pay, job

security, interesting work, and autonomy to do one’s job.• Reward individual with their desired outcomes when they perform well.• Let individuals know what they need to do to receive rewards.

Path-goal theory identifies four leadership behaviors that might be used in different situation to motivate individuals:• The directive leader lets followers know what is expected of them, schedules

work to be done and gives specific guidance as to how to accomplish tasks.• The supportive leader is friendly and shows concern for the needs of followers.• The participative leader consults with followers and uses their suggestions

before making a decision. This behavior is most appropriate when individuals need to buy in to decision.

• The achievement-oriented leader sets challenging goals and expects followers to perform at their highest level. This behavior works well with individuals who are like challenged and are highly motivated.

How do leaders create self-leaders? The following approaches have been suggested:• Model self-leadership.• Encourage employees to create self-set goals.• Encourage the use of self-rewards to strengthen and increase desirable

behaviors.• Create positive thought patterns.• Create a climate of self-leadership.• Encourage self-criticism.

A way to describe the team leader’s job is to focus on two priorities: managing the team’s external boundary and facilitating the team process. We have divided these priorities into four specific roles that team leaders play:• Liaisons with external constituencies: Outsiders include upper management,

other internal teams, customers and suppliers.• Troubleshooters: When the team has problems and asks for assistance, team

leaders sit in on meeting and try to help resolve the problems.• Conflict managers: When disagreements surface, team leaders help process

the conflict.• Coaches: They clarify expectations, and roles, teach, offer support, cheerlead,

and do whatever else to help the team succeed.

Chapter 21 Human Resources Planning

Human resource planning (HRP): the process of forecasting the future human resources requirements to ensure that the organization will have the required number of employees with the necessary skills to meet its strategic objectives.

HRP: systematically forecasts the demand for and the supply of employeesanticipating future business demandsanalyzing the impacts of these demands on the organizationmaking decisions on how to effectively acquire and utilize the firms’ human

resources

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The relationship between HRP and HRMHRM: is the policies, programs and procedures used to influence the behaviours and attitudes of employees to optimize the performance of an organization’s human capital. HRM activities include: – Planning (HRP)

– Recruitment and selection – Training and development – Compensation and benefits – Performance management – Employee relations – Labour relations – Occupational health and safety. Many HRM activities are the result of HR planning

Step 1:Forecasting future HR needs (demand)• Projected turnover, based on resignations, and terminations• Quality and nature of employees, based off manager• Decisions to upgrade the quality of products or services or enter into new markets• Planned technological and administrative changes aimed at increasing productivity and

reducing number of employees• Financial resources, eg budget Qualitative approaches Trend analysis: look at historyRatio analysis: determine staff needs with ratio eg (sales volume: number of employees needed)Scatter plot: shows method to identify relationshipsRegression analysis: uses line of best fitNominal group technique: group of experts meet and discuss, and come to a conclusionDelphi technique:useful for long range, uses experts, and employees, and come to a conclusion

Step 2: Forecasting the availability of internal and external candidates• internal • externalMarkov analysis: technique to track pattern of employee movements through various jobs, and develop a transitional probability matrix for forecasting internal supply by specific categories such as position and gender.

Step 3 planning and implementing HR programs to balance supply and demand• Labour supply exceeds demand (surplus)• Labour demand exceeds supply (shortage) • expected demand matches supplyConditions and possible solutionsWhen labour demand exceeds Labour supply

Scedual overtime, subcontract, external recruitment, ectWhen labour supply exceeds labour demand

hiring freeze, job sharing, employee layoff, ectWhen labour demand equals labour supply

Vacancies are transferred internally

Chapter 22Occupational Health and SafetyOccupational health and safety legislation are laws intended to protect the health and safety of workers by minimizing work-related accidents and illness. These laws fall into 3 categories which are general health and safety rules, rules for specific industries, and rules related to specific hazards. In some jurisdictions, they are combined into one overall law, while they remain separate in others.

Employers are responsible to take every reasonable precaution to ensure the safety and health of their workers which is called due diligence which includes filing government accident reports, maintaining records..) Employers should enforce safe work procedures through progressive discipline process. Employees should protect themselves by knowing the workplace’s safety hazards, the right to participate in the occupational health process, and also they are allowed to refuse working if there’s a reasonable cause if for example there is a complaint about a hazard that hasn’t been resolved. There should be a health and safety committee in each workplace with a minimum of 10 or 20 workers.

Health and safety inspectors are allowed to conduct inspections anywhere anytime they want. Criminal code includes corporate killing which impose liability of managers that direct other employees and fail to ensure safety in the work place. The first company to be charged is Transpave, a concrete manufacturer in Quebec.

WHMIS (Workplace Hazardous Materials Information System) provides information about hazardous substances in the workplace. This system consists of 3 components which are 1) labelling the hazardous material containers 2) Material safety data sheets to outline a product’s potentially hazardous ingredients 3) Employee training to make sure that they could identify the hazardous symbols.

Best method concerning safety, is to get workers to want to work safely, and then safety rules should be enforced.

At DuPont, accident rate worldwide has been lower than the chemical industry as a whole.

Accidents’ causes are 1) Chance occurrences 2) Unsafe conditions 3) Unsafe acts on the part of the employees.

Chance occurrences are for example walking by a plate-glass as someone hits a ball through it.

Unsafe conditions are like for example defective equipment, hazardous procedures..) Basic remedy is to eliminate the unsafe conditions. A checklist of unsafe conditions can be used to conduct a job hazard analysis. Unsafe conditions might extend to the job itself (where the crane operator is more likely to get injured than the supervisor) Work schedule (as number of hours increase, fatigue also increase and possibility of getting

injured increase. Accidents also occur during night shifts) Psychological climate of the workplace (temperature, poor illumination..)

Unsafe acts are like for example using unsafe equipment or procedures, taking unsafe positions under suspended loads.Personal characteristics influence people’s attitudes and tendencies (such as tendency to take risks) which can result in unsafe acts such as inattention, which increase the chance of injury. Research has failed to figure any set of traits that accident repeaters have in common. Good vision in jobs like intercity bus driving leads to fewer injuries and opposite is true. Risk of accidents is higher for employees who cannot read or write. Accidents generally occur among people between the ages of 17 and 28, declining in the late 50s or 60s.

If a worker’s perceptual skill is greater or equal to his motor skills, he’s likely to be a safe worker. But if his perceptual skill is lower than his motor skills, he is more likely to have accidents.

Preventing accidents can be done through reducing unsafe conditions and reducing unsafe acts. Selection testing is important because it helps screen out accident prone persons, it also measures muscular coordination and visual skills. ERI (Employee Reliability Inventory) measures reliability dimensions such as emotional maturity. Inquiring about an applicant’s compensation history should be in honesty and good-faith to avoid any claims of discrimination. Linking managers’ bonuses to safety improvements encourage managers to emphasize safety. Employees’ training should involve a practical evaluation process to ensure that the workers are following the recommended safety procedures. Safety posters should be integrated in training. Accordingly, employees are encouraged to increase their performance to the new safety goal. Managers should regularly walk through the plant, and post on a chart the number of incidents that are performed safely, and then providing workers with feedback where they could compare their performance with the assigned goal. Example, UPS has the highest level of driving recognition due to high safe driving levels on the charts.

Workers’ compensation costs are often the most expensive benefit. Indirect costs are estimated to be about 4 times the direct costs. Before the accident firms should remove unsafe conditions, screen out employees, establish a safety policy and loss control goals. After the accident Managers should show that they are interested in the injured worker, encourage a speedy return to work, and reduce costs by developing an aggressive return to work program. NIDMAR (National Institute of Disability Management and research) recommends following the 3 Cs which are 1) Commitment in keeping in touch with the worker and ensuring he’s coming back to work 2) Collaboration between family and medical staff 3) Creativity in finding ways to use the worker’s abilities on the job

• Specific actions could be internal or external to the organization

• Internally, FAE (Functional abilities evaluation) improves the chances of workers

going back to work, and identifying problems so either the worker finds therapy or be accommodated through the company’s compensation.

• Externally, managers should ensure that the family is supportive. Managers

should also make sure therapists are available to help him, and mobilize the resources of the FAE.

Employee Wellness ProgramA program that takes a proactive approach to employee health and well-being, and is different from programs that deal with employees’ problems (EAP) Through wellness programs, there was a high return on investment, companies saved a lot of direct and indirect costs, and absenteeism was cut by more than half.

Managers should ensure a safe-working environment, and try to accommodate workers with addiction. When managers test for addiction they have to tie the test to the performance of the job, should be adopted in an honest and good-faith to accomplish the work purpose. Immediate dismissal is not justifiable, managers should inform the workers of the number of warning the company will tolerate before termination. The 4 traditional techniques for dealing with substance abuse are discipline, discharge, in-house counselling, and referral to an outside agency. A substance abuse policy should be enforced by the manager where rules, warnings, preventive education is defined.

Job Stress2 main sources of job stress are environmental and personal factors. High demand jobs with a lot of deadlines and low employee control is really stressful. A lot of mental or physical effort combined with low reward system in terms of compensation or acknowledgment is also really stressful. Type A personalities which are characterized to be workaholics put themselves under a lot of stress. Burnout is the total depletion of the company’s physical and mental resources cause by excessive striving to reach an unrealistic work-related goal. Performance is optimal at the level of stress that energizes but does not wear someone out.

Violence at workILO (International Labor Organisation) defines violence as incidents where employees is abused or threatened in the workplace. Prevention and control methods should be applied like enforcing policies, create a healthy work environment, and improve employee screening.

Chapter 23- Fair Treatment: The Foundation of Effective Employee Relations

Strategic importance of effective employee relations­ Gain a competitive advantage through an organization’s human resources­ Organizational justice is described in terms of three components

o Distributive justice: fairness of a decision outcomeo Procedural justice: fairness of the process used to make a decisiono Interactional justice: fairness in interpersonal interactions by treating 

others with dignity and respect

Employee engagement­ A positive, fulfilling, work­related state of mind characterized by vigour, 

dedication, and absorption­ Drivers of engagement

o Attraction drivers include competitive pay, vacation, benefits, work, advancement

o Retention drivers include advancement, satisfaction, ability to balance work & personal life, fair compensation, and potential career track

o Engagement drivers include an interested senior management, organization’s social responsibility reputation, input in decision making, skill improvement, career track within organization

­ Engagement is strongly correlated to individual, group, and corporate outcomes

Effective Employee Communication­ Communication is an important driver­ an informed employee feels valued and 

critical to success­ Employee opinion surveys: communication devices that use questionnaires to ask 

for employees’ opinions about the company, management, and work lifeRespective Employee Privacy

­ Employers want to limit employee access to timewasters ex/ web surfing, video games

­ The Personal Information Protection and Electronic Documents Act (PIPEDA) governs the collection, use, disclosure of personal info across Canada, including employers’ collection and dissemination of personal info about employees

Retirement­ Pre­retirement counseling: counseling provided to employees some months or 

years before retirement, which covers such matters as benefits advice, second careers, and so on

­ Major changes in retirement patternso First, gender differences

Women are more likely to take early retirement  More likely to seek out new experiences and challenges after 

retiremento Second joint retirement

In couples, two sets of financial and personal circumstances must be considered

o Last flexibility in retirement arrangements is expected to increase Employers will encourage later retirement and more gradual 

transitionsLayoffs and Downsizing

Layoffs­ Temporary withdrawal of employment to workers for economic or business 

reasonso Occurs for three reasons

No work available

Management expects situation to be short term Management intends to recall employees when work is available

Downsizing­ Refers to the process of reducing, usually dramatically, the number of people 

employed by the firm­ Group termination laws require an employer to notify employees in the event that 

an employer decides to terminate a group of employees­ Face to face delivery is better accepted that information received through email or 

word of mouth

Employee discipline­ A procedure intended to correct an employee’s behavior because a rule or 

procedure has been violated­ A set of clear rules and regulations is the first foundation­ A system of progressive penalties is a second foundation of effective discipline­ An appeals process should be part of the disciplinary process to ensure procedural 

fairness

Dismissal for just cause: involuntary termination of an employee’s employment­ Dismissal is the most drastic disciplinary step­ Should occur after all reasonable steps to rehabilitate or salvage the employee 

have failed­ No clear definition to what behavior constitutes “just cause” for dismissal

Insubordination- willful disregard or disobedience of the boss’s authority or legitimate orders; criticizing the boss in public- is a form of misconduct that often provides grounds for just cause dismissal, although difficult to describe/ prove

Wrongful dismissal- an employee dismissal that doesn’t comply with the law or with a written or implied contractual arrangementConstructive dismissal- the employer makes unilateral changes in the employment contract that are unacceptable to the employee, even though the employee hasn’t been formally terminated

Termination Interview steps- The interview in which an employee is informed of the fact he/she is being dismissed1. Plan the interview- schedule early in the week avoiding Fridays, holidays, vacation times, be prepared with HR file, release announcement, employment agreement2. Get to the point- upon arrival, give the person a moment to get confortable and then inform them of the decision3. Describe the situation- explain why the person is being let go 4. Listen- allow the person to explain or talk about the situation5. Review all elements of the severance package- describe severance, benefits, how to handle references6. Identify next steps- remind person who to contact regarding questions

Outplacement counseling- a systematic process by which a terminated person is trained

and counseled in the techniques of self-appraisal and securing a new position

Chapter 24: Labour RelationsLabour union- an officially recognized body representing a group of employees who joined to present a collective voice in dealing with management

Labour management relation- the interactions between labour unions and management in organizations

Collective agreement- a formal agreement between an employee and the union regarding terms and conditions of employment

Collective bargaining- negotiations between a union and an employer to create a mutually acceptable collective agreement

Bargaining unit- the group of employees that has been recognized by an employer or certified by a Labour Relations Board as appropriate for collective bargaining purposes

In a union acceptance strategy, managers view the union as the legitimate rep of the employees. In a union avoidance strategy, managers believe it is better to operate in a non-unionized environmentUnion substitution approach is where the company is very responsive to employees needs that there is no incentive to unionizeUnion suppression approach is a desire to avoid a union at all costs

Canada’s Labour LawsHave two general purposes:

1) Provide a common set of rules for fair negotiations2) Protect the public interest by preventing the impact of labour disputes form

inconveniencing the public Some common characteristics examples in LR legislation:

- Requirement that a collective agreement be in force for a min of one year- Prohibition of strokes during the life of a collective agreement- Requirement that disputes over matters from interpretation of the collective

agreement be settled by binding arbitration

The primary goal of labour unions in Canada is to obtain economic benefits and improved treatment for their members.

Business unionism- the activities of labour unions focusing on economic and welfare issues including pay, benefits, job security, and working conditions

Social (reform) unionism- activities of unions directed at furthering the interests of their members by influencing the social and economic policies of governments at all levels,

like speaking out on proposed legislative regorms

Types of Unions:Can be classied by the following characteristics:

1) Type of worker eligible for membership. a. Craft unions- a labour organization representing workers practising the

same craft or trade. Ie carpentry or plumbingb. Industrial union- labour organization representing all workers eligible for

union membership in a particular company or industry. 2) Geographical scope

a. International unions. Ie Canada and usab. National unions

3) Labour congress affiliationa. Canadian Labour Congress (CLC)b. Confederation des standicats nationaux (CSN) or Confederation of

National Trade Unionsc. American Federation of Labor- Congress of Industrial Organizations

The basic unit of the labour movement in Canada is the local (a group of unionized employees in a particular location). Union steward- a union member elected by workers in a particular department or area of a firm to act as their union representative. Responsible for representing the interests and protecting the rights of bargaining unit employees.

Membership Trends -> in 2008, 30% of Canadian employees were unionized. The memberships in unions have been declining since 1980s because of an increase in white-collar jobs, and the decrease in the industries where unions dominated. Ie manufacturing

Global competition is forcing employers to become more militant, and unions are struggling to maintain their influence when bargaining. Some unions must choose between lower concessions or having their jobs go to lower-cost countries.

The Labour Relations Process1) Employees decide to seek collective representation2) The union organizing campaign begins3) The union receives official recognition4) Union and management negotiate a collective agreement5) Day-to-day contract administration begins

Step 1: Reasons to unionize: job dissatisfaction, lack of job security, unfair or biased admin of policies or practices, perceived inequities in pay, lack of opportunity for advancement, lack of desired amount of influence, the belief that unions can improve pay and working conditionsIt is only when workers are dissatisfied and believe that they are without the ability to change the factors causing dissatisfaction, except through collective agreement, that they

become interested in unionizing.

Step 2: Five steps involved in this process

1) Employee/union contract- employees investigate the advantages of union representation and union officials gather info about the employee sources of dissatisfaction

2) Initial organizational meeting- identify employees who would be willing to help the organizer direct the campaign

3) Formation of an in-house organizing committee- group of employees dedicated to the goal of unionization and are willing to assist the union organizer

4) The organizing campaign- the committee contacts employees, present the case, and encourage as many as possible to sign an authorization card (indicates their willingness to be represented by the union in collective bargaining)

5) The outcomeSigns of organizing activity: disappearance of employee lists, inquiries about benefits, wages, and promotions, questions about opinions of unions, increase in employee complaints, change in number of groups at lunch or coffee break, sudden popularity of certain employees, appearance of strangers in the parking lot, distribution of cards, flyers, or pro-union buttons

Under the law, employers are granted the right to…- Express their views and opinions regarding unions- State their position regarding the desirability of remaining non-union- Prohibit distribution of union literature on company property on company time- Increase wages, make promotions, and other HR actions as they would in the

normal course of business- Assemble employees during working hours to state the company’s position

Step 3:Union can obtain recognition as a bargaining unit in 3 ways:

1) Voluntary recognition- an employer can voluntarily recognize a union 2) Regular certification- normal union certification procedure. The union presents

evidence of a minimum level of membership support in the form of signed authorization cards to the appropriate LRB with an application for certification.

Representation vote- a vote conducted by the LRB where the employees by secret ballot indicate whether or not they want to be represented by a labour union

3) Pre-hearing votes- can be conducted where there is evidence of violations of fair labour practices.

Decertification- members may apply for decertification if the union has failed to negotiate a collective agreement within one year of certification or if they are dissatisfied with the performance of the union. The LRB holds a secret-vote and if more than 50% are opposed to the union, it will be decertified.

Step 4:

1) Preparation for bargaining- planning the bargaining strategy and process and assembling data to support bargaining proposals. Each side forms a negotiating team.

2) Face-to-face negotiations- demands are exchanged. Held at a neutral, off-site location. Each side has caucus session rooms available (a session where only the members of one’s own bargaining team are present).

Bargaining zone- the area defined by the bargaining limits of each side, in which compromise is possible, as is the attainment of a settlement satisfactory to both partiesDistributive bargaining- a win-lose negotiating strategy, such that one party gains at the expense of the otherIntegrative bargaining- an approach that assumes a win-win solution can be found but knows that one or both sides can lose if the bargaining is not handled effectively. Mutual gains (interest based) bargaining- a win-win approach based on training in the fundamentals of effective problem solving and conflict resolution where the interests of all stakeholders are considered

Memorandum of settlement- a summary of the terms and conditions agreed to by the parties that is submitted to the constituent groups for final approval

Ratification- formal approval by secret-ballot vote of the bargaining unit members of the agreement negotiated between union and management

Conciliation- the use of a neutral third party to help an organization and the union to come to a mutually satisfactory collective agreement

Mediation- the use (usually voluntary) of a neutral third party to help an organization and the union to reach a mutually satisfactory collective agreement

Strike- the temporary refusal by bargaining unit members to continue working for the employer

Strike vote- legally required in some jurisdictions, it is a vote seeking authorization from bargaining unit members to strike if necessary. A favourable vote does not mean that a strike is inevitable.

Picket- stationing groups of striking employees, usually carrying signs, at the entrances and exits of the struck operation to publicize the issues in dispute and discourage people from entering or leaving the premises

Boycott- an organized refusal of bargaining unit members and supporters to buy the products or use the services of the organization whose employees are on strike in an effort to exert economic pressure on the employer

Lockout- temporary refusal of a company to continue providing work for bargaining unit employees involved in a labour dispute, which may result in closure of the establishment for a time

Wildcat strike- a spontaneous walkout, not officially sanctioned by the union leadership, which may or may not be illegal depending on its timing

Arbitration- the use of an outside third party to investigate a dispute between an employer and union and impose a settlement

Interest arbitration- the imposition of the final terms of a collective agreement

Interest dispute- a dispute between an organization and the union representing its employees over the terms of a collective agreement

The outcome of collective bargaining is a formal, written, collective agreement. Includes:- a union recognition clause- Union security/checkoff clause- deals with the issue of membership requirements

and the payment of union dues- No-strike-or-lockout provision- Management rights clause- Arbitration 3) Obtaining approval for the proposed contract

Step 5: Union typically prefer to have employee-related decisions determined by senioritySeniority- length of service in the bargaining unit

- Ensures that there is no favouritism- Managers prefer to place a greater weight on ability or merit

Most agreements restrict an employer’s right to discipline by requiring proof of just cause for the disciplinary action imposed. This is a major source of grievances because it is open to interpretation.

Grievance- a written allegation of a contract violation, filed by an individual bargaining unit member, the union, or management.

- A multi-step grievance procedure is found in the collective agreemento Ensures the application of the contract with a degree of justice for both

sideso Provides the opportunity for the interpretation of contract language

Steps in the grievance procedure:Systematic deliberation of a complaint at progressively higher level of authority Pg 599 figure 24.4

Rights dispute- a disagreement regarding the interpretation or application of one or more clauses in the current collective agreement

Rights arbitration- the process involved in the settlement of a rights dispute

Impact of Unionization:Management may feel as though they have less freedom/authoritySupervisors are required to produce more written recordsGreater centralization of employee record keeping to ensure consistency and uniformityHR department is expandedIncrease in management responsibilities

Building effective labour-management relations:- Instituting an open-door policy- Extending the courtesy of prior consultation- Demonstrating genuine concern for employee well-being- Forming joint committees and holding joint training programs- Meeting regularly- Using third-party assistance

Chapter 25 – Power and PoliticsDefinition of Power:

- Power:  A capacity that A has to influence the behaviour of B acts in accordance with A’s wishes

- the more that B depends on A, the more power A has in the relationship

- Coercive Power: Power that is based on fear

o one reacts to this power based out of here of the negative results that might occur if one fails to comply with it 

o rests on the application or the threat of physical pain, frustration through restriction of movement or controlling by force of physiological or safety needs

o at the organizational level A has coercive power over B if A can dismiss, suspend, or demote B, assuming that B values his or her job (A can also assign work to B that B finds unpleasant or treat B in an embarrassing way)

- Reward Power: Power that achieves compliance based on the ability to distribute rewards that others view as valuable (money, positive performance appraisals, promotions, interesting work, friendly colleagues etc.)

o to the degree which an individual seeks such rewards, your ability to give or withhold them gives you power over that individual

- Legitimate Power: Power that a person receives as result of his or her position in 

the formal hierarchy of an organization 

- Expert Power: Influence based on special skills or knowledge 

- Referent Power: Influence based on possession by an individual of desirable resources or personal traits

o Develops out of admiration of another and a desire to be like that person 

- Information Power: Power that comes from access to and control over information 

Evaluating the Bases of Power:- Generally people will respond in one of three ways when faced with those who 

use the bases of power described above:

o Committeemen. The person is enthusiastic about the request and shows initiative and persistence in carrying it out 

o Compliance, the person goes along with the request grudgingly, put in minimal effort and takes little initiative in carrying out the request 

o Resistance. The person is opposed to the request and tries to avoid it with such tactics as refusing, stalling and arguing about it

- Coercive power leads to resistance, decreased satisfaction, and increased mistrust 

- Legitimate power leads to compliance but doesn’t lead to increased commitment 

- Expert and referent power are the most likely to lead to commitment 

- The least effective for improving commitment are coercive, reward, and legitimist however most used by managers 

What Creates Dependency?- Dependency is increased when the resource you control is important and cannot 

be substituted

- Resource must be viewed as scare to create dependency 

- No substitutability: the fewer substitutes there are for a resource, the more power comes from control over that resource 

Influence Tactics:- How do individuals translate their bases of power into specific, desired actions? 

Indientified nine influence tactics managers and employees use to increase their power:

o Rational persuasion – using facts and data to make a logical or rational presentation of ideas

o Inspirational appeals – appealing to values, ideals and goals when making a request 

o Consultation – getting other involved to support ones objectives

o Ingratiation – using flattery, creating goodwill, and being friendly prior to making a request 

o Personal Appeal – appealing to loyalty and friendship when asking for something

o Exchange – offering favours or benefits in exchange for support

o Coalitions – getting the support of other people to provide backing when making a request 

o Pressure – using demand, threats, and reminders to get someone to do something

o Legitimacy – claiming the authority or right to make a request or showing that is supports organizational goal or policies 

- Studies have shown that rational persuasion, inspirational appeals, and consultation tend to be the most effective 

- Pressure can often backfire and be the least effective 

- Political skill – the ability to influence others in such a way as to enhance ones objectives 

Empowerment:- In today’s workplace there is a movement toward sharing more power with 

employees by putting them in teams and also by making them responsible for some of the decisions regarding their jobs 

- Empowerment: refers to the freedom and the ability of employees to make decisions and commitments 

- Giving people the authority, opportunity and motivation to take initiative to solve organizational problems

- Puts power where it is needed to make it effective

- People who are empowered have a strong sense of self­efficacy 

Degrees of Empowerment:- Job content: the tasks and procedures necessary for carrying out a particular job

- Job context: the reason for doing the job, it reflects the organizational mission, objectives and setting 

- Three examples of employee power based on job context and content:

o No discretion: point A – is the typical line assembly job, highly routine and repetitive, the employee is assigned the tasks, given no discretion and is monitored – less likely to be satisfied and less productive 

o Participatory empowerment – Point B – represents the situation of autonomous work groups that are given some decision making authority over both job content and job context – higher job satisfaction and productivity 

o Self­Management Point C – represents employees who have total decision making power for both job content and context – generally reserved for those in top management – very rewarding 

- For employees to be empowered, however, and have ownership mentality, 4 conditions need to be met:

o There must be a clear definition of the values and mission of the company 

o The company must help employees acquire the relevant skills

o Employees needs to be supported in their decision making and not critisized when they try to do something extraordinary 

o Employees need to recognized for their efforts

Effects of Empowerment:- Harassment in the workplace: people who engage in harassment in the workplace 

are typically abusing their power position 

- Workplace Bullying

- Sexual harassment: Unwelcome behaviour of a sexual nature in the workplace that negatively affects the work environment or leads to adverse job­related consequences for the employees 

Politics: Power in Action- Political Behaviour: those activities that influence or attempt to influence the 

distribution of advantage and disadvantages within the organization 

- Organizational politics – the pursuit of self­interest in an organization, whether or not this self­interest corresponds to organizational goals 

- Self­conscious and intentional 

- Would be countered if detected by those with different agendas 

- Types of Political Activity:

o Attacking or blaming others 

o Using information

o Managing impressions

o Building support for ideas

o Praising others

o Building coalitions – joining with other people to create a powerful group

o Associating with influential people

o Creating obligations

- Impression management: the process by which individuals attempt to control the impression others form of them 

Chapter 26 NotesConflict defined

• Conflict: a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about

Functional vs. Dysfunctional• Functional conflict supports the goals of the group and improve its performance,

while dysfunctional conflict hinders group performanceCognitive and affective conflict

• Cognitive conflict: conflict that is task oriented and related to differences in perspectives and judgments; tends to be functional

• Affective: aimed at a person and not an issue; tends to be dysfunctionalSources of conflict

1. Communication

• Can be a source of conflict from semantic difficulties, misunderstandings and "noise"

• Conflict increases when there is too little or too much communication2. Structure

• Conflict can arise between people in an organization that may be from the requirements of the job or workplace rather than personality

• Size, specialization and composition: the larger the group, the more specialization, the greater likely hood of conflict. Tend to be higher when employees are young and have a high turnover rate

• The greater the ambiguity: the harder it is to precisely define ones responsibility, the greater the conflict.

• Reward system: where one member gains at anther's expense• Leadership style: creates conflict if managers tightly control and

oversee the work of the employee• Diversity of goals: When groups within an organization seek

diverse ends, some of which are inherently at odds• If one group is dependant on another: if interdependence allows on

group to gain at another's expense3. Personal Variables

• Value systems that each person has, and the personality characteristics that account for individual idiosyncrasies and differences

Conflict resolutionConflict management strategies

• Researchers often use Dual concern theory: It considers how one's degree of cooperativeness and assertiveness determine how a conflict is handled

• The five conflict-handling strategies identified by the theory are as follows• Forcing: imposing one's will on the other party, win-lose situation• Problem-solving: Trying to reach an agreement that best satisfies each

groups goals, win-win situation• Avoiding: Ignoring or minimising the importance of the issues creating the

conflict, win-win situation• Yielding: Accepting and incorporating the will of the other party, win-

lose situation• Compromising: Balancing concern for oneself with the concern for the

other party in order to reach a solution, win-win• Deciding which one is dependant on numerous factors

• i.e. when a small child insists on trying to run into the street a parent may need a forcing strategy to restrain the child

• i.e. co-workers problem-solving to achieve a deadlineWhat can individuals do to manage conflict?

• Individuals can use the following• Problem solving: requesting face to face meeting to identify the problem

and resolve it through open discussion• Developing overreaching goals: creating a shared goal that requires both

parties to work together and motivate them to do so• Smoothing: playing own the differences wile emphasising common

interests with the other party• Compromising: agreeing with the other party that each will give up

something of value to reach the other party• Avoidance: Withdrawing from or suppressing the conflict

• These can be used especially in a work environment• Expansion of recourses: expansion of the recourses can create a win-win

situation• Authoritative command: Management can use its formal authority to

resolve the conflict and then communicate its desires to the party involved• Altering the human variable: Behavioural change techniques such as HR

relation training can alter attitudes and behaviours that cause conflict• Altering the structural variables: The formal organization structure and the

interaction patterns of confronting parties can be changed through job redesign, transfers, creation of coordinating positions and the like

Resolving personality conflicts• A variety of factors lead to personality conflicts

• Misunderstandings based on age, race, or cultural differences• Intolerance, prejudice, discrimination, or bigotry• Perceived inequalities• Misunderstandings, rumors, or falsehoods about an individual or group• Blaming for mistakes or mishaps

• Personality conflicts can result in lowered productivity when people find it difficult to work together.

Resolving intercultural conflicts• High-context cultures tend to emphasis non verbal cues and situational cues, Low-

context cultures rely more on words and less on situational cues and formality. Conflict can result form people interacting with others form different culture contexts

Third party conflict resolution• When groups cannot solve a conflict between themselves they usual turn to

alternative dispute resolution (ADR), where a third party helps find a solution outside of a court room. Thus includes facilitation, conciliation, an ombudsperson, peer review, mediation and arbitration

• Facilitation: A facilitator generally acquainted with both parties helps them work together to resolve an issue

• Conciliation: a conciliator is a trusted third party who provides an informal communication link between the negotiator and the opponent. Conciliators also engage in fact-finding, interpreting messages, and persuading disputants to develop agreements

• Ombudsperson: official role in the organization were a employee hears disputes between parties. The advantages are that arties can avoid going through formal organizational channels for a resolution

• Peer review: a panel of peers is put together to hear both sides of the issue form the parties involved and recommend a solution. Panel is supposed to be objective

• Mediator: A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestion for alternatives, effective under moderate levels of conflict

• Arbitration: a third party to a negotiation who has the authority to dictate an agreement, an advantage over mediation is that it always ends with a settlement. Weather or not there is a negative side depends on how "heavy-handed" the arbitrator appears. Problems may arise again if one party feels completely defeated.

Conflict outcomes• Conflict is constructive when it improves the quality of decisions, stimulates

creativity and innovation, encourages interest and curiosity among group members, provides a medium where tensions can be released, and fosters and environment of self-evaluation and change

• Can prevent group think• There are three desired outcomes of conflict

• Agreement: Equitable and fair agreements are the best outcome• Stronger relationships: when conflicts are solved positively, they can lead

to grater trust• Learning: Handling conflict successfully teaches one how to do it better

next timeNegotiations

• Negotiation: a process in which two or more parties exchange goods or services and try to agree on the exchange rate of them

• Negotiations usually consists of issues ( items that are specifically placed on the barraging table for discussion), positions (individual stands on issues), and interests (underlying concerns that are affected by the negotiation resolution)

• Negotiators who understand the underlying interests of themselves and the other party may have more flexibility in achieving a resolution

Bargaining Strategies1. Distributive Bargaining• Negotiations that seek to divide up a fixed amount of recourses; a win-lose

solution• It is best to make the first offer, and have it be aggressive. This gives you the

power by communicating first• The high end in what you think is reasonable• Revealing the deadline speeds concession for the negotiating counterparts2. Integrative bargaining• Negotiations that seek one or more settlements that can create a win win situation• This method is preferred over distributive bargaining because it strengthens

relationships between organizations and makes it easier to work together in the future. Distributive bargaining on the other hand, leaves one party a loser and tends to create animosities and deepen division

• Needs both parties to be open to information and candid about theirs and the other parties concerns

How to negotiate1. Develop a strategy

• Answer the following: What is the nature of the conflict? What is the history leading up to this negotiation? Who is involved, and what are their perceptions of the conflict?

• What are your goals? It is often helpful to come up with a range of outcomes from most hopeful to minimally acceptable

• Determine the target resistance points as well as best alternative to a negotiated agreement, which is the outcome an individual faces if negotiations fail. The zone between each party's resistance point, assuming there overlap in this range

2. Defining ground rules• Answer the following: Who will be negotiating? Where will it take place? What

time constraints if any will apply? To what issues will negotiations be limited? Will there be a specific procedure to follow if an impasse in reached?

• Parties will also exchange their initial proposals of demands3. Clarification ad Justification• Parties explain, amplify, clarify, bolster, and justify the original demands• This is a opportunity for educating and informing each party on the issues4. Bargaining and problem-solving• The actual give and take and trying to hash out an agreement5. Closure and implementation• Formalizing the agreement that has been worked out

Contemporary issues in negotiationsGender differences in negotiating style

• Women are more inclined to be concerned with feelings and perceptions, and thus take a longer-term view when negotiating

• Men are more inclined to focus on resolving the matter at hand• Men view the bargaining session as a separate event, whereas women view it as

part of the overall relationshipCultural differences

• France: The French like conflict, thus negotiations take a longer time, and they are not overly concerned about weather their opponents like or dislike them

• China: Like to draw out negotiation, The chines negotiate to develop a relationship and a commitment to work together rather than to tie up every lose end

• Japan: Also negotiate to develop relationships and commitment to work together, tend to communicate indirectly

• United States: Drag out negotiations and make friendship conditional on the final settelment