This Document Contains Chapters 11 to 12 Chapter 11 Intergroup Development Learning Objectives 1. Identify problems of intergroup conflict and suboptimization. 2. Experience the negative effects of competition on organization effectiveness. 3. Observe and develop strategies for collaborative intergroup relations. 4. Diagnose the causes of cooperative versus competitive group ¬relations. Student Premeeting Preparation 1. Read Chapter 11. 2. Prepare for OD Skills Simulation 11.1. Read and familiarize yourself with the rules and procedures of the Disarmament Game. Complete Step 1. 3. Read and analyze Case: The Exley Chemical Company. Instructor Preparation and Materials 1. Simulations: Simulation 11.1 The Disarmament Game is involved and the rules are complicated. Review the rules carefully as you will likely have to answer questions. See the “Instructor premeeting preparation” and “Suggestions” material in the Simulation 11.1 section of this instructor manual for more information. LECTURE OUTLINE 1) Learning objectives. (pg. 294) a) Identify problems of intergroup conflict and suboptimization. b) Experience the negative effects of competition on organization effectiveness. c) Observe and develop strategies for collaborative intergroup relations. d) Diagnose the causes of cooperative versus competitive group ¬relations. 2) Changing relationships in today’s organizations. (pg. 294) a) Managers are concentrating their efforts on shared responsibilities among work teams. b) Organizations create situations of team interdependence where the performance of one group is contingent upon another group. c) People and groups often fail to cooperate with others and may be in open conflict. d) One set of OD interventions aims specifically at improving interdepartmental interfaces and intergroup operating problems. e) These OD interventions aim at developing effective working methods between teams. 3) Collaboration and conflict. (pg. 296) a) An organization, consisting of departments and divisions, requires cooperation to be effective. b) However, differences in objectives, values, efforts, and interests occur between groups. c) It is inevitable that conflict and competition between groups will occur. d) The dysfunctional nature of the conflict can be reduced with an emphasis placed on collaboration and cooperation. e) Boundaryless is a term that describes General Electric’s approach to maintaining collaboration between divisions and subscribing to interdependent teams. f) Dysfunctional conflict is reduced through intergroup interventions. 4) Intergroup operating problems (pg. 297) a) Conflict between groups depends on how incompatible the goals are, the extent to which required resources are scarce and shared, and the degree of interdependence of task activities. (See Figure 11.1 - Factors Involved in the Potential for Conflict) b) Suboptimization occurs when a group optimizes its own subgoals but loses sight of the larger organizational goals. c) Intergroup competition involves groups with conflicting purposes or objectives. d) Perceived power imbalance between groups occurs where there is a perceived imbalance between units or when previously established relations are altered. e) Role conflict and role ambiguity. i) Role conflict occurs when an individual belongs to two or more groups whose goals are in conflict. ii) Role ambiguity exists when an individual of a group is not clear about his/her functions, purposes, and goals. f) Personality conflict arises from interpersonal differences between members. 5) Cooperation versus competition. (pg. 299) a) Though competition is often perceived to be beneficial, the research results of competition and cooperation among groups is mixed. b) Members of competitive groups have more self-esteem for their groups. c) Groups competing with one another are more highly oriented toward accomplishing the task, but there is a lack of evidence that competition will increase productivity. d) Research indicates that cooperation promotes productivity between groups when the task is complicated and requires coordination. 6) Managing conflict. (pg. 300) a) Organizational conflict does not need to be eliminated but instead managed. b) Diagnosing conflict situations involves learning the basic conflict styles used in dealing with interpersonal or intergroup conflict. c) Conflict styles are based on 2 dimensions: (See Figure 11.3 - Conflict Styles) i) Desire to satisfy self. ii) Desire to satisfy others. d) Five styles represent the different levels of cooperative versus assertive behavior: i) Avoiding - low concern for both self and others. ii) Obliging - low concern for self and high concern for others. iii) Dominating - high concern for self and low concern for others. iv) Compromising - moderate concern for self and moderate concern for others. v) Integrating - high concern for self and others. e) Several OD intergroup techniques are available to deal with problems between groups. i) Dealing with conflicts openly provides a way to manage tensions creatively. ii) OD techniques for dealing with intergroup problems include third-party consultation, the organization mirror, and intergroup team building. f) Third-party consultation. i) Uses a third party, usually an outside practitioner, to help open communications, level power, and confront problems between groups. ii) The third party provides diagnostic insight, is nonevaluative, and is a source of emotional support and skills. g) Organization mirror. i) Gives work units feedback on how other elements of the organization view them. ii) Normally using a practitioner, the work group obtains specific information from other groups that it comes in contact with. iii) The units meet together to process the data with the objective of identifying problems and formulating solutions. h) Intergroup team building. i) Key members of conflicting groups meet to work on issues of interface. ii) The meeting usually involves the following steps: (See Table 11.1 - Intergroup Meeting Listings) (1) Step 1. Working separately, the two work groups make three lists: (a) How we see ourselves. (b) How we think the other group sees us. (c) How we see the other group. (2) Step 2. Meeting with the other group, a spokesperson from each group presents their lists. (3) Step 3. Groups meet separately to discuss the information. (4) Step 4. Subgroups of five or six are formed by mixing members of the two groups. Their objective is to develop problem-solving alternatives with action plans. (5) Step 5. A follow-up meeting is held to evaluate progress. OD Applications Harley-Davidson’s Plant Run by Work Teams (pg. 295) SUMMARY Harley-Davidson Motor Co. (HD) at its Kansas City plant is relying upon workers’ teams to assist in operating the plant. MAJOR POINTS • HD, over 100 years old, manufactures motorcycles that are known throughout the world. • In 2007 HD began to experience significant challenges in changing demographics and the recession. • Their Kansas City plant is an example of how it is building on employee strengths so that HD will once more be the success that it once was. • Before the plant opened it worked for two years with the union on a labor agreement. • The result was “The 23 Elements of Shared Responsibility,” which empower workers’ teams to: ○ Make their schedules and work rules. ○ Train new workers and evaluate fellow workers. ○ Manage the plant’s operating budget. ○ Approve plant strategies. • The plants structure centers around the employees. • A production worker is a member of a natural work group of 8 to 15 people. • Each group sends a representative to an operating group. • The plant has four operating groups that oversee its division. • Each group elects a representative to serve on the Plant Leadership Group. • The Plant Leadership Group includes the plant manager, both union presidents, six managers, and a representative from maintenance. • The plant is open and does not have walls for offices. • Employees chosen to work at the plant are rigorously screened. • New hires go through training lasting up to six months and includes technical and teamwork training. • Productions workers receive financial rewards based on the performance of the plant. QUESTIONS 1. Research Harley’s current financial picture. Its annual reports are available at www.harley-davidson.com/. Answer: As of the latest annual reports, Harley-Davidson's financial picture shows a mixed performance. The company has faced challenges such as fluctuating sales, supply chain issues, and shifting consumer preferences. However, it continues to show resilience with strategic efforts in expanding its product lineup, improving operational efficiency, and targeting new markets. Financial results indicate some recovery, but ongoing strategic adjustments are needed to sustain growth and profitability. 2. Do you think the Kansas City plant is a realistic idea? Support your position. Answer: The Kansas City plant could be a realistic idea if it aligns with Harley-Davidson's strategic goals, such as improving production efficiency or expanding market reach. The feasibility depends on factors like cost, logistics, and potential benefits in terms of production capacity and market access. If these aspects are well-supported, it could be a viable move for the company. 3. What could be some problems with this type of structure? Answer: The ability to make fast decisions could be sacrificed by the work groups taking longer to reach agreement. Time that otherwise would be devoted to production could be sacrificed when team members are attending plant meetings. If workers do not see how their work is translated into rewards that they receive, they may become apathetic towards their work. A recession, such as the one that began in late 2007, could demoralize the teams when they encounter situations where no matter how well and hard the teams are working, the company’s sales and financial health still decline. 4. Do you have any suggestions to improve the plant? Answer: To improve the Kansas City plant, consider implementing advanced manufacturing technologies for increased efficiency, adopting lean production practices to minimize waste, and enhancing employee training programs. Additionally, integrating sustainable practices and optimizing supply chain management could further boost productivity and reduce costs. Review Questions 1. Identify major sources of organizational conflict. Answer: Limited resources, competition, power conflict, role conflict, role ambiguity, personality conflict, goal conflict, and suboptimization. 2. Many people approach conflict as a win-lose situation. Why is a win-win approach more likely to work? Answer: Research indicates cooperation in some situations promotes productivity; however, there is lack of evidence to support intergroup competition promoting productivity. In simple tasks, competition tends to be superior to cooperation as it provides incentive. Tasks that are more complicated require coordination and sharing of information which competition tends to discourage. A “win-win” approach encourages interaction and negotiation to increase frequency of communication that in turn promotes cooperation. 3. What are the anticipated behaviors of competitive conflict that occur in work teams? Answer: Competing groups see the best in itself and the worst in the other group. Communication decreases between groups and hostility increases toward the other group. The group becomes more cohesive, structured, and organized. Also within the group, concern for task accomplishment increases while concern for psychological needs of members decreases. Leadership styles become more autocratic and less democratic. After the groups complete the task and there is a winner and a loser, the winning group will become more cohesive but, with their self-image of being better than the other group, they will become complacent. The winning group will become more concerned for member’s psychological needs and less concerned for task accomplishment. The losing group denies the loss if the situation is ambiguous enough or rationalizes the loss by blaming it on bad luck or unclear rules. Initially the group splinters, tries to find someone to blame, and has less concern for member’s psychological needs. Over time, however, the loosing group usually learns more about itself because its preconceived ideas about being the best group are upset. The long-term result of the loss can have positive outcomes if the losing group realistically accepts its loss. 4. Identify and compare the five major conflict styles. Answer: Avoiding - low concern for both self and others. Obliging - low concern for self and high concern for others. Dominating - high concern for self and low concern for others. Compromising - moderate concern for self and moderate concern for others. Integrating - high concern for self and others. 5. Compare and contrast the methods used in the different approaches to resolving intergroup conflict. Answer: Third-party consultation - one method of increasing communication and initiating intergroup problem solving through the use of a third party, usually an outside practitioner. In this process the parties directly engage each other and focus on the conflict between them. Organization Mirror - a technique designed to give work units feedback on how other elements of the organization view them. This intervention is designed to improve relationships between groups and increase effectiveness. Intergroup Team Building - an intergroup team building or confrontation technique where key members of conflicting groups meet to work on issues or interface. An interface is any point at which contact between groups is essential to achieving a result. KEY WORDS AND CONCEPTS Define and be able to use the following words and concepts: Avoiding Style - a style of managing conflict that avoids conflict by withdrawing. (pg. 300) Boundaryless - a term used by General Electric that refers to reducing conflict between divisions and departments (i.e., there are no boundaries between departments). (pg. 296) Compromising style - a style of managing conflict that tends to seek out compromise between conflicting parties. (pg. 301) Confrontation - the process in which the parties directly engage each other and focus on the conflict between them. (pg. 302) Dominating style - a style of managing conflict that attempts to attain personal objectives and often ignores the needs of others. (pg. 300) Integrating style - a conflict style where there is high concern for self and others. This style is concerned with problem solving; uses openness, sharing of information, and the examination of differences to reach a consensus solution. (pg. 301) Interdependence - situations where the performance of one group is contingent upon another group. (pg. 296) Interfaces - meeting point between groups. (pg. 296) Intergroup competition - A condition causing intergroup problems which involves groups with conflicting purposes or objectives. This condition emerges when a group desires or pursues one goal while directly opposing values that exist in another group. (pg. 298) Intergroup interventions - OD interventions that attempt to increase cooperation among organization subsystems. (pg. 297) Intergroup team building - An OD intervention technique where key members of conflicting groups meet to work on issues or interface. (pg. 303) Meta goals - the superordinate organization goals. (pg. 302) Obliging style - a style of managing conflict that is concerned with people satisfactions and smoothing over conflicts. (pg. 300) Open loop - elements of an organization such as departments operating without feedback. There is no mechanism for corrective action to take place. (pg. 297) Organization mirror - a technique designed to give work units feedback on how other elements of the organization view them. This intervention is designed to improve relationships between groups and increase effectiveness. (pg. 303) Suboptimization - when the goals of operating divisions are interdependent, optimization by one group may result in decreased goal attainment for other groups and the organization. Occurs when a group optimizes its own subgoals but loses sight of the larger organization goals. (pg. 298) Team interdependence - the performance of one group is contingent upon another group. (pg. 294) Third-party interventions - method of increasing communication and initiating intergroup problem solving using a third party, usually an outside practitioner. In this process the parties directly engage each other and focus on the conflict between them. (pg. 302) ADDITIONAL RESOURCES Readings: Cannon, Alan and Caron H. St. John, “Synergy through Collaboration: A Theory of Culture's Effects,” Academy of Management Proceedings, August 2008, pp. 1-6. Cross, Rob, Kate Ehrlich, Ross Dawson, and John Helferich, “Managing Collaboration: Improving Team Effectiveness through a Network Perspective,” California Management Review, vol. 50, no.4 (Summer 2008), pp. 74-98. Thompson, Leigh L., Making the Team, A Guide for Managers, (Upper Saddle River, NJ: Pearson Education, Inc., 2008). Chapter 12, Interteam Relations: Competition and Cooperation. Walton, Richard E., Interpersonal Peacemaking: Confrontations and Third-Party Consultation, (Reading, Mass.: Addison-Wesley Publishing Co., Inc., 1969). This is one of the titles in the Addison-Wesley series on organization development. The series is considered a classic and might be found on eBay or Amazon. Video: Miracle. (2004, Buena Vista Pictures) This movie, based on a true story, is of the 1980 U. S. men’s Olympic hockey team. It illustrates how individual hockey players became a team in a short time and won a gold medal over the much more experienced and highly favored Soviet team. Players with old college rivalries who once competed with one another come together as a team. Master and Commander: The Far Side of the World. (2003, DVD). This is a long movie (138 minutes run time) and the point of teamwork and leadership can be made by showing the following segments. From 0 to 20 minutes of the movie – Illustrates teamwork and leadership. Personal and team gains (safety) are subordinated to the needs of the ship. If the ship does not survive, then personal safety is moot. At 40 minutes - Another example of individual sacrifice for the ship. At 45 minutes – Teams doing their tasks to keep the ship from going down in heavy seas. One member goes overboard ad the Captain makes the decision to sacrifice the crew member for the survival of the ship. At 1 hour, 10 minutes – Team training. Similar to Extreme teams in OD in Practice in Chapter 11. You might want to explore with the class if teamwork in military situations has any application to non-military organizations. SIMULATION PROCEDURES Simulation 11.1 (pg. 306) The Disarmament Game 1. Student premeeting preparation: a. Students should read and become familiar with the rules and procedures of the simulation before coming to class. b. Students cut out play money before class to save class time. Having students use their own money or some ratio to the amount in the simulation is desirable but not necessary for the success of the simulation. 2. Instructor premeeting preparation: a. The class will need to be divided so there will be two teams working with each other. Depending on the size of your class, you will need to consider further dividing so you will have two different Disarmament Games, both composed of two teams each. Try to avoid a team size of less than five. b. It will help to have the assistance of several people who are experienced and trained observers. In addition, you will need a referee for each set of two groups. I use an observer for each group and another observer at the negotiations. Their comments are helpful in Simulation 11.2. I have used observers who are class members and, when possible, other professors, graduate students, or students who previously had the course. c. Separate rooms for each group are desirable and a neutral zone away from their groups for the negotiations is also helpful. The groups should not be able to hear each other. d. It is desirable to have a three-hour block of time (or more). Segmenting the simulation (also segmenting Simulation 11.2 from 11.1) tends to diminish some of the dynamics. For shorter class periods, I have sometimes been able to negotiate with the students an alternative meeting time when a longer block of time is available. 3. Suggestions: a. If students have normally been working with the same people in previous simulations, staying in these same groups will help them to identify more closely with their team in this simulation. b. It is strongly suggested that Simulation 11.2 be a follow up to this simulation. I have found that in classes when time got short and we either glossed over or did not do Simulation 11.2, there was animosity between students in competing groups and they became dysfunctional for the remainder of the semester. The impact of Simulation 11.1 should not be underestimated; I have yet to use it when it fell “flat.” Several semesters later, this simulation is brought up in conversations with my x-students. 4. Discussion points: a. Many factors contribute to the development or breakdown of cooperation and collaboration. One of the most important is the existence of distrust when we doubt another’s intentions or suspect his/her motives. b. Look at the difference between win-win strategies and win-lose strategies. c. Did the two groups take the opportunity to collaborate and break the World Bank? Why or why not? d. Discuss the idea of trust. Did one group trust the other but at its own expense? e. Were individuals heard within each group? 5. Total time suggested: 120 minutes You will need to adjust these times to fit your specific schedule and class plans. Minutes Steps 1 and 2 90 Step 3 5 Step 4 10 Step 5 15 Total 120 Notes Simulation 11.2 (pg. 313) Intergroup Team Building 1. Premeeting preparation: a. Complete Simulation 11.1. 2. Suggestions: a. If there were observers used in Simulation 11.1, they should be used to share their observations. b. It may be difficult to get students to focus on team building and instead they may persist in arguing about Simulation 11.1. A certain amount of replaying 11.1 is necessary for this simulation but you may need to remind the students of the objectives. You may be acting as a third-party practitioner to the groups. This is helpful as students can experience firsthand the role and behavior of a practitioner. c. If the class is large where two sets of Disarmament Games were played, one set of teams can be in the fishbowl (or inner circle) while the other set observes. 3. Discussion points: a. Were any of the difficulties that were created in Simulation 11.1 resolved? b. Be particularly aware of class members who are unusually quiet. 4. Total time suggested: 75 minutes You will need to adjust these times to fit your specific schedule and class plans. Minutes Steps 1 and 2 30 Step 3 10 Step 4 20 Step 5 15 Total 75 Notes CASE TEACHING NOTES The Exley Chemical Company (pg. 313) I. Problems A. Macro 1. Geographic separation of plants. 2. Unclear delineation of responsibility; duplication of roles among departments. 3. Competition, rather than cooperation, within and between departments. B. Micro 1. Personal territoriality in departments. 2. Lack of integration of efforts. II. Causes 1. Poor communication. 2. Poor planning. 3. Lack of shared objectives. III. Systems affected 1. Structural - responsibilities overlap without coordination of people involved. 2. Managerial - managers sometimes operate at cross purposes to one another. Other managers tend to drop the ball if they are not given specific authority for an area. 3. Psychosocial - Some departments (for example, Exley’s research person in charge of polymers) see the need for better teamwork on the projects. Without direction from corporate headquarters, managers seem to identify more with their departments than the entire organization. 4. Technical - the ability to develop new products is being hindered. 5. Goals and values - each department identifies with their own goals and not the meta or organization-wide goals of Exley. IV. Alternatives 1. Intergroup development including third-party consultation, organization mirror, and intergroup team building. 2. Get rid of product development division and create teams of involved employees to head-up the development, introduction, manufacturing, and sales of products. 3. Return to traditional method used before the creation of the product development division. V. Recommendations A combination of alternatives 1 and 2. Make all affected divisions responsible for new products. This will require a high degree of intergroup development. STUDENT PREPARATIONS FOR THE NEXT CHAPTER 1. Read Chapter 12. 2. Prepare for OD Skills Simulation 12.1. Prior to class, form teams of seven and assign roles. Complete Step 1. 3. Complete Step 1 of OD Skills Simulation 12.2. 4. Read and analyze Case: Valley Wide Utilities Company. Chapter 12 Goal Setting for Effective Organizations Learning Objectives 1. Recognize how goal setting can be used as part of an OD program. 2. Apply the major findings of the research on goal setting to develop organizational and personal goals. 3. Describe how management by objectives (MBO) can be applied as a management system. 4. Experience and practice goal-setting approaches. Student Premeeting Preparation 1. Read Chapter 12. 2. Prepare for OD Skills Simulation 12.1. Prior to class, form teams of seven and assign roles. Complete Step 1. 3. Complete Step 1 of OD Skills Simulation 12.2. 4. Read and analyze Case: Valley Wide Utilities Company. Instructor Preparation and Materials 1. Simulations: no special materials are required. LECTURE OUTLINE 1) Learning objectives. (pg. 319) a) Recognize how goal setting can be used as part of an OD program. b) Apply the major findings of the research on goal setting to develop organizational and personal goals. c) Describe how management by objectives (MBO) can be applied as a management system. d) Experience and practice goal-setting approaches. 2) Goal-setting Theory. (pg. 319) a) Goal setting is invariably part of an OD program, though a formal goal-setting program may not be. However, a formal program is more likely to produce favorable results. i) Goal setting may be organization-wide, department-wide, individual, or an integration of the three. ii) A goal is anything an individual is trying to accomplish and is the object of action. b) Major findings relevant to goal-setting theory: i) More difficult goals produce better performance. ii) Specific hard goals are better than “do your best” goals. iii) People may abandon goals if the goals become too hard. iv) Participation in setting goals increases commitment and attainment of goals. v) Feedback to an individual about accomplishment of goals improves performance. vi) Education levels, seniority, and position in organization of participants do not predict success of goal setting. vii) Goal-setting in teams deserve special consideration. viii) Support of management is critical. 3) Goal-setting model. (pg. 323) a) First three factors in goal setting are determining the goal, achieving goal commitment, and overcoming resistance. (See Figure 12.2, Goal Setting) b) Goals are developed which are difficult, specific, and are work group or individual. c) Commitment to goals can be achieved by: i) Mutual trust in and by upper management. ii) Support by management. iii) Competition between employees and teams but care should be used in designing competitive situations. d) Overcoming resistance to goals by providing: i) Special training if required. ii) An effective reward and incentive system. iii) Participation by employees in setting goals. e) A period of performance during which support and feedback by management are given. i) Employees may require additional training and resources. ii) Managers may need to work with employees to develop action plans. iii) Managers provide timely and objective feedback. f) A number of studies on goal setting show favorable results. 4) Management by objectives (MBO) (pg. 324) a) MBO is a specific technique for setting goals. b) It is aimed at the integration of individual and organization goals. c) Definition of MBO. i) It is a system of management set up to help in planning, organizing, problem-solving, motivating, and other important managerial activities. ii) MBO is a process where the superior and subordinate managers of an organization: (1) Jointly identify its common goals (2) Define each individual’s major areas of responsibility in terms of results expected. (3) And use these measures as guides for operating the unit and assessing the contribution of each of its members. iii) MBO involves the participation of subordinates and their managers in setting and clarifying the goals for subordinates. d) There are two underlying purposes of MBO. i) One is to clarify the organization’s goals and plans at all levels. ii) The other is to gain better motivation and participation from the organization’s members. e) The MBO process includes the following phases: i) Top management team studies the system. ii) The team sets up methods of measuring performance. iii) Goal-setting sessions are held down through the organization. f) Steps in the MBO process. (See Figure 12.3, Steps in the MBO Process) i) Subordinate proposes specific goals and ways to measure them for a designated time period. ii) Subordinate and superior jointly develop mutually agreed upon goals. iii) A period of performance. iv) Feedback of results with comparison between actual performance and goals. v) Previous step sets the stage for a recycling of the goal-setting process. g) Criticisms of MBO. i) Implementing MBO is expensive and time-consuming. ii) It has traditionally been limited to managerial and professional employees where the costs can be justified. iii) Joint goal-setting among unequal’s is difficult and may not be possible. iv) MBO may be too quantitative, and setting objectives as explicitly as possible may not be functional. v) Areas that cannot be quantified easily may be ignored. vi) MBO may be implemented in some organizations as the top dictating to the bottom. vii) Some OD practitioners question if MBO is an OD intervention. h) Results of MBO. i) It has been difficult to measure success of MBO, perhaps because of the proliferation of so many different approaches in its application in organizations. ii) Absence of current research which may indicate declining use of MBO. iii) Available research shows mixed results, though generally favorable. OD Applications Goal Setting in Teams at General Mills (pg. 320) SUMMARY General Mills has improved its teams by looking for examples outside the company. MAJOR POINTS • The chief technical officer of General Mills, Randy Darcy, is looking at groups that take team performance to the extreme. • The teams General Mills looks to are ones that dissect their operations, analyze them, change them, and put them back together. • Teams General Mills examined were a NASCAR pit crew and the way that Stealth bomber pilots and ground crews cooperate. • The purpose is to jolt employees into thinking of new ways of doing their jobs. • Cross-team cooperation was examined. • Studying the cooperative methods between SWAT team units helped General Mills to replace separate performance goals for engineering, purchasing, and production with a single set of goals. • Though General Mills identified extreme teams outside of the company when the program began in the early 2000s, they currently have their own examples of extreme teams. • Extreme teams cut costs through “margin management” where small changes can add up to big savings. • Each division in General Mills has a three-year savings goal, and everyone usually meets once a week to look at costs. QUESTIONS 1. Do you agree with Darcy’s approach of going to teams that take performance to the extreme? Answer: It depends on the context. If Darcy’s approach of engaging with teams that push performance to the extreme aligns with the organization's goals and fosters innovation and excellence, it can be beneficial. However, if it risks burnout or creates unhealthy competition, it may need adjustment. Balance is key to ensuring sustainable performance and team well-being. 2. What are some other examples of extreme teams that General Mills or any organization might study? Answer: Sport teams such as college and professional football, musical groups such as bands and orchestras, and military units that could include the Navy Seals. Review Questions 1. Identify and discuss the major factors in effective goal setting. Answer: Goals should be difficult and specific, but they should not be impossible to attain. Frequent, relevant, and specific feedback is important. Goal setting can be successful regardless of the education level, position in the organization, or seniority of the participant. Support from management is critical. 2. Discuss the role of participation in goal setting. Answer: Participation, though not mandatory, tends to lead to participant commitment. Commitment is a crucial ingredient in effective goal setting. Management should also participate in a goal program by providing timely and specific feedback . 3. Describe Locke and Latham’s goal-setting model. Answer: The first three factors in the goal-setting process are determining the goal, achieving goal commitment, and overcoming resistance to goal acceptance. The following goal attributes or characteristics tend to work best in setting goals. Goals should be difficult and challenging but not impossible to accomplish. They should be specific and measurable and they should be compatible with goals formulated at higher levels of the organization. The next step is a period of performance. The results of the employees’ performance can be beneficial or negative. Higher performance and pride in achievement of successes can be expected. Negative consequences can be expected, particularly when the goals are not achieved. 4. What are the typical steps in an MBO program? Answer: Step 1 - The subordinate proposes to his/her manager a set of goals for the upcoming time period that are formulated to be congruent with goals set at the next higher level. Step 2 - The subordinate and the manager jointly develop specific goals and targets. Step 3 - A period of performance in which the individual involved is attempting to accomplish the individual goals. Step 4 - The manager feeds back results to the subordinate and gives appropriate rewards for performance. Step 5 - The outcome of the performance review provides the basis for setting new performance goals and recycling of the goal-setting process. 5. Compare and contrast the factors that make for successful and unsuccessful MBO programs. Answer: Mutual goal setting is not always possible; MBO may be expensive and time consuming; managers may resist required changes in style. If participative and clear, it is more likely to be successful. KEY WORDS AND CONCEPTS Define and be able to use the following words and concepts: Goal - what an individual is trying to accomplish and is the object or aim of action. (pg. 320) Goal setting - a process intended to increase efficiency and effectiveness by specifying desired outcomes toward which individuals, teams, and organization should work. (pg. 319) Management by objectives (MBO) - a specific technique used by organizations for setting goals. It is a system of management set up to help in planning, organizing, problem solving, motivating, and other important management activities. (pg. 324) ADDITIONAL RESOURCES Readings: Jones, Graham, “How the Best of the Best Get Better and Better,” Harvard Business Review, June 2008, pp. 123-6. Video: Flight of the Phoenix, 1965, remake 2004, 142 minutes, Twentieth Century Fox Film Corp. The story of a plane crash in the desert and the difficulty of survival. Subjects include goal setting, conflict, teamwork, and leadership styles. Additional Simulation: An additional simulation that is not in the text follows on the next page. OD Skills Simulation GOAL SETTING (Total time required: approximately 1 hour) A. Purpose To gain practice setting goals and to improve your abilities in helping others set and refine their goals. B. Procedures Step 1. Make a list of three or four things you would like to accomplish. You may want to refer to Simulation 2.1 where you set goals. Your goals can relate to several areas: they can be personal involving your family, friends, social life, and community; and they can be work or school related involving your career and on-the-job accomplishments. At this point, don’t worry about the wording or whether they meet all the criteria of a properly worded goal. Just get your ideas down on paper. Step 2. Goals to be effective need to meet certain characteristics as the text pointed out. Continue refining the goals to meet these criteria including being difficult and challenging, achievable and realistic, measurable, specific, and time-framed with a date of accomplishment. Step 3. Form into teams of three members. One person will serve initially as the client, another person as the practitioner, and the third person as the observer. The simulation will have three rounds in which the roles will rotate. The practitioner: As the practitioner, assist the client to further refine the goals. Working from the process model, you may want to help the client focus on the following issues: 1. What factors influenced you in the choice of these goals? 2. Are the goals difficult and challenging yet achievable and realistic for you? 3. How do you plan to measure your progress toward these goals? 4. Will the accomplishment of the goals be observable to others? 5. What factors in yourself, others, and the environment will help and hinder you in accomplishing the goals? The observer: During the meeting, the observer will carefully note the process using the Observer Form found at the end of the simulation. A report on the observations will be made after each of the goal-setting meetings. The client: The final wording of the goals can be recorded in the following space: Continue this step until all members have served as a client, consultant, and observer. Time suggested for Step 3: 60 minutes OBSERVER FORM Instructions: Based on the scale, select the number that indicates your observation of the following areas. Record your choice in the blank to the right. SIMULATION PROCEDURES Simulation 12.1 (pg. 328) Organization Goal Setting 1. Student premeeting preparation: a. Form into teams of seven the preceding class and select roles. b. Students should read the Vernal Corporation Background Information, their role description, and become familiar with the simulation. 2. Suggestions: a. Emphasize that students read only their role description. 3. Discussion points: a. Would team building as discussed in Chapter 10 help in setting goals? b. Discuss the problems of the compatibility of personal and organizational goals. c. Also, discuss the problems of conflict of goals between individuals and how they are or are not resolved. What norms have emerged? 4. Total time suggested: 60 minutes You will need to adjust these times to fit your specific schedule and class plans. Minutes Step 2 30 Step 3 15 Step 4 15 Total 60 Notes Simulation 12.2 (pg. 335) Managing By Objectives 1. Student premeeting preparation: a. Review list of objectives from Simulation 2.1. b. Also, review process practitioner techniques. 2. Suggestions: a. emphasize the importance of the observer role. 3. Discussion points: a. Goal-setting and behavioral objectives. b. How can one obtain feedback about one’s behavior? c. Difference between ideal and actual. d. Practice skills in giving and receiving feedback. 4. Total time suggested: 60 minutes You will need to adjust these times to fit your specific schedule and class plans. Minutes Steps 1 to 3 45 Step 4 15 Total 60 Notes CASE TEACHING NOTES Valley Wide Utilities Company (pg. 337) I. Problems A. Macro 1. Difficulty in setting standards 2. Low morale, resistance to measurement. 3. Goals don’t appear to be mutually set. 4. MBO set for the purpose of evaluating department managers, not as a method of setting goals. B. Micro 1. Not enough input from below; too top-down. 2. “Management by exception” doesn’t allow for causes; too numerical, not enough human factor. II. Causes 1. Rewards overlooked; failure emphasized; too negative. 2. No employee input. 3. Standards not agreed upon. 4. Goals ignored. III. Systems affected 1. Structural – Givens and Hirsh seem to be staff managers. Yet they are imposing goals on line and operational units. 2. Psychosocial – people not truly committed to goals, lack of personal involvement in setting goals. 3. Technical – repairs to lines and other emergency situations may not be corrected in future if people blindly adhere to the goals. 4. Managerial – lack of flexibility. Managers may become “robot-like” if MBO goals are imposed without consideration for unforeseen problems and situations. 5. Goals and values – the goals of Valley Wide can suffer as there is no clear policy and procedures regarding goal setting. Goal setting and MBO was tried briefly, didn’t work immediately, and quickly dropped. This could create a precedent for future programs to improve the organization. IV. Alternatives 1. Team and interteam development. 2. MBO with team input. 3. Role clarification. V. Recommendations All of the alternatives can be used with a revised MBO goal setting program. STUDENT PREPARATIONS FOR THE NEXT CHAPTER 1. Read Chapter 13. 2. Prepare for OD Skills Simulation 13.1. Prior to class, form teams of six to eight members and assign supervisor and observer roles. Complete Step 1. 3. Prepare for OD Skills Simulation 13.2. Form teams of six and assign roles. Complete Step 1. 4. Read and analyze Case: Wengart Aircraft. Instructor Manual for An Experiential Approach to Organization Development Donald R. Brown 9780136106890
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