Human Relations in Business Week 5 Discussion
Human Relations in Business
Week 5 Discussion
Learning Objectives Understand the meaning of power
Recognize the positive and negative aspects of power and influence
Recognize the sources of power
Understand and recognize influence tactics and impression management
Learn the definition of a social network and how to analyze your own network
Understand the antecedents and consequences of organizational politics
Understand how ethics affect power
Understand cross-cultural influences on power use
Chapter 13 Power and Politics
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Power
Power is the ability to influence the behavior of others to get what you want.
On November 27, 2007, Fortune named Steve Jobs the most powerful person in business.
Positive and Negative Consequences of Power
Conformity refers to people’s tendencies to behave consistently with social norms.
The Milgram Study The Asch Study The Zimbardo Study
Milgram
This is an illustration of the setup of a Milgram experiment. The experimenter (E) convinces the subject ("Teacher" T) to give what are believed to be painful electric shocks to another subject, who is actually an actor ("Learner" L). Many subjects continued to give shocks despite pleas of mercy from the actors.
Photo Source: http://en.wikipedia.org/wiki/Image:Milgram_Experiment_v2.png
Asch
This is a sample item from the Asch study. Participants were asked one by one to say which of the lines on the right matched the line on the focal line on the left. While A is an exact match, many participants conformed when others unanimously chose B or C.
Focal Line A B C
• 24 volunteers participated• 18 randomly assigned role of prison guard• Remaining 6 were picked up by actual police officers and
taken to a prison created in the basement of Stanford psychology building
• Guards were instructed to keep order but received no training
• Prisoners began to feel depressed and helpless• Guards began to be aggressive and abusive• Original experiment was scheduled to last 2 weeks –
ended in 6 days
Zimbardo
• Thinking about the Milgram and Zimbardo studies, do you think you would behave the same or differently in those situations? Explain.
Discussion
Power
The Relationship Between Dependency and Power
Dependency
Scarcity
Importance
Substitutability
Bases of Power
•Power that comes from a role or position
Legitimate
•The ability to grant a reward
Reward Power
•The ability to take something away or punish someone for noncompliance
Coercive Power
•Knowledge and skills
Expert Power
•Special access to specific information
Information Power
•Stems from personal characteristics of the person
Referent Power
Elected 44th US President
Military Commander-in-Chief
Cabinet position appointments
Briefed on national security issues
Individuals differ on these as he received 52% of the popular vote
Bases of Power: Barack Obama
Source: http://en.wikipedia.org/wiki/President_barack_obamaThis file is licensed under Creative Commons
Attribution 2.0 License.
Legitimate
Reward Power
Coercive Power
Expert Power
Information Power
Referent Power
People who are considered to be skilled influencers share the following attributes:
How often do you engage in them? 0 = never 1= sometimes 2 = always
_____ present information that can be checked for accuracy_____ provide a consistent message that does not change from situation
to situation_____ display authority and enthusiasm (often described as charisma)_____ offer something in return for compliance_____ act likable_____ show empathy through listening_____ show you are aware of circumstances, others, and yourself_____ plan ahead
If you scored 0-6: You do not engage in much effective influencing behaviorIf you scored 7-12: You engage in some influencing behaviorIf you scored 13-16:You have a great deal of influence potential
OB Toolbox: Self-Assessment – Do You Have the Characteristics of a Powerful Influencer?
Responses to Influence Tactics
Resistance
• Occurs then the influence target does not wish to comply with the request and either passively or actively repels the influence attempt.
Compliance
• Occurs when the target does not necessarily want to obey, but they do.
Commitment
• Occurs when the target not only agrees to the request but also actively supports it as well.
The Most Commonly Used Influence Tactics
Frequency of Use Resistance Compliance Commitment
Rational persuasion
54% 47% 30% 23%
Legitimating 13% 44% 56% 0%
Personal appeals
7% 25% 33% 42%
Exchange 7% 24% 41% 35%
Ingratiation 6% 41% 28% 31%
Pressure 6% 56% 41% 3%
Coalitions 3% 53% 44% 3%
Inspirational appeals
2% 0% 10% 90%
Consultation 2% 18% 27% 55%
Impression Management
Impression management includes how a person dresses, how they stand, and the way they behave at work.
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Impression Management
Nonverbal
•Includes clothing, body language, and demeanor
Verbal
•Includes tone of voice, rate of speech, what you choose to say, and how you say it
Behavioral
•Includes how you perform on the job and how you interact with others
Direction of Influence
Upward influence is the ability to influence those in positions higher than yours.
Downward influence is the ability to influence those in positions lower than yours.
Effective peer influence occurs when individuals are not destructively competitive.
Political Skill
93% of managers surveyed reported that workplace politics
exits in their organization
70% felt that in order to be successful, a person had to
engage in politics
Research from HR magazine found that managers waste 20% of their time managing
politics
Political skill refers to a person’s interpersonal style, including their ability to relate well to others, self-monitor, alter their reactions depending on the situation, and inspire confidence and trust.
Antecedents of Political Behavior
Individual•Political skill• Internal locus of control• Investment in the organization
•Expectations of success
Organizational• Scarcity of resources• Role ambiguity• Performance evaluations• Promotions• Democratic decision making
Political behavior
Social Networks
A social network is a map or the relationships between individuals. A social network analysis (SNA) is a systematic effort to examine the structure of social relationships in a group.© 2010 Jupiterimages
Corporation
Network Ties and Key Network Roles
• Those linked to the greatest number of people
Central Connectors
• People who connect one network to another
Boundary Spanners
• People with special expertise that can be drawn upon even though they often work independently of the group
Peripheral Specialists
Network Ties and Key Network Roles
Group 1 Group 2
Central connector Boundary Spanner Peripheral Specialist
Strong and Weak TiesStrong Ties• Ties that often indicate
emotional support, not just informational support between people
Weak Ties• Ties characterized by less
frequent interaction and often do not have as much emotional attachment, they are also easier to maintain so people can have more of them
Building Your Own Network
Doing social things such as playing golf or tennis outside of work is one way to help build your social network.
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Power Around the Globe: Power Distance
High• Brazil• Hong Kong• Arab Nations• The Philippines• Venezuela• Spain
Low• Australia• The Netherlands• Sweden
Power distance refers to how concentrated power is and how hierarchical a given system might be.
Chapter 14 Organizational Structure and Change
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Learning Objectives
Define organizational structure
Identify the basic elements of structure
Explain the difference between mechanistic and organic structures and describe factors shaping an organization’s structure
Describe matrix, boundaryless, and learning organizations.
Understand how structure affect ethics
Understand cross-cultural influences on structure and change
Building Blocks of Structure
Centralization
Formalization
Hierarchical Levels Departmentalization
Organizational Structure
Centralization
Decentralized companies give more
authority to lower level employees, resulting in
a sense of empowerment
The degree to which decision making authority is concentrated at higher levels in an organization
Establishing Balance
Centralized
Can lead to inefficiencies in
decision making in an uncertain or highly competitive market
In a stable environment, can
lead to more efficient operations
Decentralized
Decisions can be made more quickly
Can provide greater levels of procedural
fairness to employees
Formalization is the extent to which an organization’s policies, procedures, job descriptions, and rules are
written and explicitly articulated
Written Rules
Explicit Regulations
Formalization
Hierarchical Levels
•Several layers of management between frontline employees and the top level
•Fewer employees report to each manager
•Greater opportunities for managers to supervise and monitor employee activities
Tall
•Few management layers
•Larger number of employees reporting to each manager
•Can lead to greater levels of freedom for each employee
Flat
Advantages of Flat Organizations
Companies such as IKEA, the Swedish furniture manufacturer and retailer, are successfully using flat structures within stores to build an employee attitude of job involvement and ownership
Source: http://commons.wikimedia.org/wiki/Image:Ikea_almhult.jpg
Departmentalization
Organizations using functional structures group jobs based on similarity in functions– Marketing– Management– Finance– Accounting– Human Resources– Information
Technology
In organizations using divisional structures, departments represent the unique products, services, customers, or geographic locations the company is serving– Each unique product or
service the company is producing will have its own department
Contemporary Forms of
Organizational Structures
Matrix Organizations balance a traditional functional structure
with a product structure
Boundaryless Organizations eliminate traditional barriers
between departments and the external environment
Learning Organizations actively seeks to acquire knowledge and change behavior as a result of the newly acquired knowledge
Nike successfully utilizes the
matrix organization
Provides quick responses to technical problems and customer demands
Increases the frequency of informal and formal communication within the organization
May increase communication and cooperation among departments
Structures are created in response to uncertainty and dynamism of the environment
Advantages of Matrix
Product 1 Manager
Product 2 Manager
Product 3 Manager
In a Matrix Structure each person reports to a department manager as well as a project or product
manager
CEO
Business Analyst Manager
Business Analyst
Business Analyst
Business Analyst
Development Manager
Developer
Developer
Developer
Quality Assurance Manager
Tester
Tester
Tester
Disadvantages of the Matrix Organization
Can create role ambiguity and role conflict
Potential for interpersonal conflict with team members as well as with leaders
More effort is required to coordinate work flow
Two managers per individual can result in power struggles
Boundaryless Organizations
Modular Organization – where all nonessential
functions are outsourced
• Toyota manages relationships with hundreds of suppliers
Strategic Alliances - two or more companies combine
their efforts to create a partnership that is beneficial
for both parties
• Starbucks achieved distribution success of Frappuccino by partnering with Pepsi
Learning Organizations
Experimenting Learning new things
Reflecting on new knowledge
Forms of Organizational Change
company structure
strategy
policiesprocedures
technology
culture
Growth Drives Change
Started in a garage, Widmer Brothers Brewing Co. merged with Redhook Ale Brewery in 2007 to form the 11th largest brewery in
the US by 2008
Owned and granted permission by Widmer Brothers Brewing Co.
Resistance to change takes many forms
Active Resistance
Passive Resistance Compliance Enthusiastic
Support
Why people resist
change
Disrupted Habits
Personality
Feelings of Uncertainty
Fear of FailurePersonal Impact of Change
Prevalence of Change
Perceived Loss of Power
Fear of failure! Fear of failure is a common reason employees resist change
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Lewin’s Three-Step Model of
Planned Change
• Ensures that employees are ready for change
Unfreeze
• Execute the intended change
Change• Ensures that
the change becomes permanent
Refreeze
What can organizations do before change occurs to prepare employees?
Communicate a Plan for Change
Develop a Sense of Urgency
Build a Coalition
Provide Support
Allow Employees to Participate
Executing and Facilitating Change
Continue to provide support
Create small wins
Eliminate obstacles
Refreezing and Making Change Part of the Culture
Reward change adoptionPublicly recognize those who are giving support
to the change effort
Publicize success
Share concrete results with employees
Discussion• How would you deal with employees who are
resisting change because their habits are threatened? How would you deal with them if they are resisting because of a fear of failure?
Chapter 15 Organizational Culture
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Learning Objectives
Describe organizational culture and why it is important for an organization
Understand the dimensions that make up a company’s culture
Assess whether a culture is weak or strong
Understand factors that create culture
Understand how to change culture
Understand how organizational culture and ethics relate
Understand cross-cultural differences in organizational culture
What is Organizational Culture?
A system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior
The culture of the organization is closely linked
to organizational
design
Why Does Organizational Culture Matter?
An organization’s culture may be one of its strongest assets or
its biggest liability
Organizational culture is an effective control mechanism dictating employee
behavior
Culture, or shared values within the
organization, may be related to increased
performance
Organizations which have a rare and hard to imitate culture may enjoy a competitive
advantage
Three Levels of Organizational Culture
Assumptions
Values
Artifacts
Basic assumptions lie below awareness. Assumptions are taken for granted, and reflect beliefs about
human nature and reality
At the second level, values exist. Values are shared principles,
standards, and goals
Artifacts are on the surface, or are visible, tangible aspects of
organizational culture
• Share examples of artifacts you have noticed at different organizations.
Discussion
Which values characterize an organization’s culture?
Dimensions of Culture
Organizational Culture Profile
(OCP)
Organization Culture Profile
Innovative
Aggressive
Outcome Oriented
StablePeople Oriented
Team Oriented
Detail Oriented
Innovative Cultures
W. L. Gore
Genentech
Flexible
Adaptable Experiment
with new ideas
Bill Gates co-founder of Microsoft
Microsoft has been described as having an aggressive culture
http://simple.wikipedia.org/wiki/Image:Bill_Gates_in_Poland_cropped.jpg
Outcome-oriented cultures
• A culture that emphasizes achievement, results, and action as important values
Stable Cultures
• Companies that are stable are predictable, rule-oriented, and bureaucratic
People-oriented cultures
• These organizations value fairness, supportiveness, and respecting individual rights
Southwest has a team-oriented culture
Team-oriented cultures are collaborative and emphasize cooperation among employees
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Detail-oriented culture
A culture that is characterized in
the OCP framework as emphasizing precision and
paying attention to details
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STRENGTH OF CULTURE
Walt Disney created a strong culture which survives today
Source: http://en.wikipedia.org/wiki/Image:Walt_disney_portrait.jpg
Challenges of a Strong Culture
Difficult to change
Can be a liability during a merger as each separate culture must
merge together
Do Organizations Have a Single Culture?
Subculture – set of values unique to a limited cross-section of the organization
Counterculture – shared values and beliefs that are in direct opposition to the values of the broader organizational culture
Culture MaintenanceCulture Creation
Creating and Maintaining Organizational Culture
Founder values and preferences
Industry demands
Early values, goals,
assumptions
Attraction-selection-attrition
New employee onboarding
Leadership
Reward systems
Organizational Culture
Founder Values and Preference
The social activism of Ben
and Jerry’s was instilled in the company because founders strongly believed in these issues
Social activism helped distinguish Ben and Jerry’s from larger corporate brands
The values were retained as part of the corporate culture and taught to new members as the right way to do business
Source: http://commons.wikimedia.org/wiki/Image:BenJerry-UnitedSquare.jpg
How are Cultures Maintained?
attraction
selection
attrition
onboarding
Learning Culture Through Onboarding
The process through which new employees
learn the attitudes, knowledge, skills, and behaviors required to
function effectively within an organization
Onboarding Methods
Use of formal orientation programs
Mentoring by supervisors and coworkers
Role modeling by visible leaders
Rewards Influence Culture
The types of behaviors that are
rewarded or ignored set the
tone for the culture
Behaviors?
Results? Performance?
Seniority?
Signs of Culture
Visual elements of culture
Rituals
Mission Statement
Stories
Physical Layout
Rules & Policies
Tradition is important at Mary Kay Cosmetics
Pink Cadillacs are given to top sales performers at large annual events.
Source: http://en.wikipedia.org/wiki/Image:MK_Cadillacs.jpg
• Do you think it is a good idea for companies to emphasize person-organization fit when hiring new employees? What advantages and disadvantages do you see when hiring people who fit with company values?
Discussion
How Do Cultures Change?
1. Create a sense of urgency
2. Change leaders and other key
players
3. Role model4. Train
5. Change the reward system
6. Create new
stories and symbols