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CHAPTER 13 Managing Organization Change and Innovation END OF CHAPTER QUESTIONS Questions for Review 1. What forces or kinds of events lead to organization change? Identify each force or event as a planned or a reactive change. Both internal and external forces encourage change. External forces in the general and task environment may change, encouraging the organization to change. The task environment is most closely linked to the organization; therefore, any change in it will have a strong and immediate effect. Internal forces can also affect the organization. Generally, there is no way to know whether internal or external forces will lead to planned or reactive. 2. Compare planned and reactive change. What are the advantages of planned change as compared to reactive change? Planned change has the advantage of a systematic and logical process for planning and implementation of a change. The process allows time for thorough investigation into causes, for careful consideration of alternatives, for solicitation of feedback, and for orderly implementation of the chosen alternative. 3. In a brief sentence or just a phrase, describe each of the organizational development (OD) techniques. OD techniques include: (1) diagnostic activities—quizzing workers and examining archives to determine the causes of problems; (2) team building—fostering good interpersonal relations and participation; (3) survey feedback—using surveys to measure perceptions; (4) education—training in “people” skills; (5) intergroup activities—working to improve the relationship between two or more groups; (6) third-party peacemaking—intervention from an outside party in resolving a conflict between others; (7) technostructural activities—change the organization design and/or the prevailing technology; (8) process consultation—observation and recommendations from an expert on improving interpersonal processes; (9) life and career planning—helping employees formal personal and career goals; (10) coaching and counseling—recommendations to workers and managers on performance improvements; and (11) planning and goal setting—teaching the mechanics of the decision-making process. 4. Consider the following list of innovations. Categorize each along all three dimensions of innovation, if possible (radical versus incremental, technical versus managerial, and product versus process). Explain your answers. Teaching college courses by videotaping the instructor and sending the image over the Internet The rise in popularity of virtual organizations (discussed in Chapter 12) Checking the security of packages on airlines with the type of MRI scanning devices that are common in healthcare A device combining features of a cell phone and a handheld computer with Internet capability Robotic arms that can perform surgery that is too precise for a human surgeon’s hands Hybrid automobiles, which run off of both batteries and gasoline Using video games to teach soldiers how to plan and execute battles Let's categorize each innovation along the three dimensions of innovation: 1. Teaching college courses by videotaping the instructor and sending the image over the Internet: • Radical vs. Incremental: Incremental (utilizing existing technology and methods to deliver education in a slightly different format) • Technical vs. Managerial: Technical (involves the use of technology • video recording and internet transmission) • Product vs. Process: Process (changes how teaching is delivered rather than introducing a new product) 2. The rise in popularity of virtual organizations: • Radical vs. Incremental: Radical (transforms the traditional concept of organizations by operating primarily in a virtual space) • Technical vs. Managerial: Managerial (focuses on organizational structure and management practices rather than specific technological innovations) • Product vs. Process: Process (alters the way organizations are structured and managed rather than introducing a new product) 3. Checking the security of packages on airlines with MRI scanning devices: • Radical vs. Incremental: Incremental (adapts existing MRI technology for a new application) • Technical vs. Managerial: Technical (involves the development and implementation of new technology for security purposes) • Product vs. Process: Process (changes how security checks are conducted rather than introducing a new product) 4. A device combining features of a cell phone and a handheld computer with Internet capability: • Radical vs. Incremental: Incremental (combines existing features of cell phones and handheld computers into a single device) • Technical vs. Managerial: Technical (involves the development and integration of hardware and software components) • Product vs. Process: Product (introduces a new device with enhanced features and capabilities) 5. Robotic arms that can perform surgery that is too precise for a human surgeon’s hands: • Radical vs. Incremental: Radical (introduces a completely new method of performing surgery) • Technical vs. Managerial: Technical (involves the development and implementation of advanced robotics technology) • Product vs. Process: Product (introduces a new medical device for performing surgery) 6. Hybrid automobiles, which run off of both batteries and gasoline: • Radical vs. Incremental: Incremental (combines existing technologies • electric and gasoline-powered engines • in a new configuration) • Technical vs. Managerial: Technical (involves the development of hybrid propulsion systems) • Product vs. Process: Product (introduces a new type of automobile with a different powertrain) 7. Using video games to teach soldiers how to plan and execute battles: • Radical vs. Incremental: Incremental (applies existing technology • video games • for a new educational purpose) • Technical vs. Managerial: Managerial (involves the design and implementation of new training programs) • Product vs. Process: Process (alters the method of military training rather than introducing a new product) These categorizations highlight the diverse nature of innovations, which can range from incremental improvements to radical transformations, and from technological advancements to changes in management practices or processes. Questions for Analysis 5. What are the symptoms that a manager should look for in determining whether an organization needs to change? What are the symptoms that indicate that an organization has been through too much change? Poor performance, defined broadly, is the best indicator of the need to change. Poor performance might be manifested in declining profitability, falling sales, negative customer feedback, dissatisfied employees, and so on. An organization that has changed too much or too quickly will find high resistance to further change, inefficiency, and chaotic or incomplete organizational systems and processes, among other signs. 6. Assume that you are the manager of an organization that has a routine way of performing a task and now faces a major change in how it performs that task. Using Lewin’s model, tell what steps you would take to implement the change. Using the comprehensive approach, tell what steps you would take. For each step, give specific examples of actions you would take at that step. Lewin states that organizations must unfreeze, or accustom employees to the need for change, before beginning the change. So students should focus first on convincing employees that change is needed. This might involve showing negative performance results to employees. Next, the change should be implemented. Finally, the organization must be “refrozen” in its new configuration. This might involve working to fix any remaining problems related to the change and reassuring workers that the change is now complete. 7. Think back to a time when a professor announced a change that you, the student, did not want to adopt. What were the reasons for your resistance to change? Was the professor able to overcome your resistance? If so, tell what he or she did. If not, tell what he or she could have done that might have been successful. Most will probably mention uncertainty about exactly what the change would involve, threatened self-interests, and different perceptions, especially in the gap between the perceptions of the teacher and the students. Professors that were successful in overcoming resistance probably asked students to participate in making decisions related to the change, explained the change carefully, answered students’ questions thoughtfully, and announced the change well in advance. Professors who were unsuccessful in overcoming resistance should consider one or more of those tactics in the future. Questions for Application 8. Some people resist change, whereas others welcome it enthusiastically. To deal with the first group, one needs to overcome resistance to change; to deal with the second, one needs to overcome resistance to stability. What advice can you give a manager facing the latter situation? The people who resist stability are searching for something new, different, or better all the time. Some resistance to stability is appropriate and useful to move a business forward. However, people must possess enough stability to reduce to the need to always be seeking change. To allow this stability, individuals should be encouraged to look at the good in the present. Although stability may not appear to be motivating, individuals may not be seeing the value in the way things are at present. 9. Can a change made in one area of an organization— in technology, for instance—not lead to change in other areas? If you think that change in one area must lead to change in other areas, describe an example of an organization change to illustrate your point. If you think that change can occur in just one area without causing change in other areas, describe an example of an organization change that illustrates your point. Change in one area of an organization can often lead to changes in other areas due to interdependencies and interconnectedness within the organization. Here are examples illustrating both perspectives: Change Leading to Changes in Other Areas: Example: Implementation of a new Customer Relationship Management (CRM) system When an organization implements a new CRM system, it impacts various areas beyond just technology. While the primary focus might be on updating technology, the change can trigger organizational shifts in processes, roles, and even culture. For instance: 1. Process Changes: With the introduction of the CRM system, existing customer data management processes may need to be redesigned to align with the new system's capabilities. This could involve streamlining workflows, standardizing data entry procedures, and implementing new protocols for customer interactions. 2. Role Changes: The adoption of a CRM system may require employees to take on new roles or responsibilities related to data entry, analysis, and customer engagement. Existing roles may evolve to incorporate technology-driven tasks, such as data mining or customer segmentation. 3. Cultural Changes: The introduction of a CRM system can also influence the organization's culture by promoting a customer-centric mindset and emphasizing the importance of data-driven decision-making. Employees may need to adapt to a new way of working that prioritizes customer insights and engagement. Change Occurring in One Area Without Causing Change in Other Areas: Example: Implementation of a new office furniture arrangement In contrast, some changes may be localized to a specific area without necessitating significant changes elsewhere. For instance: 1. Implementation of a New Office Furniture Arrangement: If an organization decides to rearrange office furniture to create a more collaborative workspace, the change may primarily impact the physical environment without requiring extensive adjustments in other areas. While employees may need to adapt to a new seating arrangement or layout, the change is unlikely to affect processes, roles, or culture significantly. Overall, while certain changes may have ripple effects across multiple areas of an organization, others may be more contained and localized, depending on the nature and scope of the change. It's essential for organizations to anticipate potential impacts and proactively manage change to ensure successful implementation and alignment with strategic objectives. 10. Research an innovation change that occurred in a real organization, by interviewing an employee, reading the business press, or using the Internet. Describe the process by which the innovation was developed. Did the actual process follow the ideal process described in the chapter? Why or why not? The outline hypothetical scenario based on common innovation processes and compare it to the ideal process described in the chapter. Hypothetical Scenario: Development of a New Mobile App for a Retail Company 1. Idea Generation: The innovation process begins with the identification of a need or opportunity. In this case, the retail company recognizes the growing trend of mobile shopping and the importance of enhancing the customer experience through a mobile app. 2. Concept Development: The company conducts market research to understand customer preferences, competitor offerings, and technological capabilities. Based on the findings, they develop a concept for the mobile app, outlining its features, functionalities, and target audience. 3. Feasibility Analysis: The company assesses the technical, financial, and organizational feasibility of developing the mobile app. They evaluate factors such as resource availability, budget constraints, and alignment with strategic objectives to determine the project's viability. 4. Design and Development: Once the feasibility is confirmed, the company proceeds with the design and development phase. They collaborate with software developers, designers, and user experience experts to create wireframes, prototypes, and beta versions of the mobile app. 5. Testing and Iteration: The company conducts extensive testing to identify bugs, usability issues, and performance concerns. They gather feedback from beta testers and iterate on the app's design and functionality based on user insights and testing results. 6. Launch and Implementation: After addressing any issues identified during testing, the company launches the mobile app to the public. They promote the app through marketing campaigns, social media, and other channels to attract users and drive adoption. 7. Evaluation and Improvement: Following the app's launch, the company monitors key performance metrics, such as downloads, user engagement, and revenue generation. They analyze user feedback and usage data to identify areas for improvement and prioritize future enhancements. Comparison to Ideal Process: The hypothetical innovation process outlined above aligns with many aspects of the ideal innovation process described in the chapter, such as idea generation, feasibility analysis, design and development, testing and iteration, and evaluation and improvement. However, there may be deviations or challenges encountered along the way that affect the process's adherence to the ideal model: 1. Time Constraints: The actual innovation process may face time constraints that impact the thoroughness of each phase. For example, the company may need to accelerate development to meet market demands or stay ahead of competitors, leading to shortcuts or compromises in certain areas. 2. Resource Limitations: Limited resources, such as budget, talent, or technology, can constrain the company's ability to execute the ideal innovation process fully. This may result in trade-offs or adjustments in project scope, timeline, or quality. 3. Uncertainty and Risk: The innovation process inherently involves uncertainty and risk, and unforeseen challenges or obstacles may arise that disrupt the ideal trajectory. The company must be prepared to adapt and pivot in response to changing circumstances to ensure project success. Overall, while the actual innovation process may not always follow the ideal model perfectly, companies can strive to incorporate key principles and best practices to maximize the likelihood of innovation success. Flexibility, agility, and continuous improvement are essential for navigating the complexities of innovation and achieving desired outcomes. END OF CHAPTER EXERCISES Building Effective Decision-Making Skills I. Purpose This exercise provides a format for analyzing the phases in a decision-making process. II. Format The exercise involves both individual and group work. The individual identifies a change at work or in personal life and examines it using the unfreezing, changing, refreezing steps. The class then breaks up into groups where students share their plans for change. III. Follow-Up A. The last part is an individual follow-up activity where the individual reflects on the experience. Building Effective Diagnostic Skills I. Purpose This exercise aids students in understanding how managers approach making decisions related to organization change. II. Format The diagnostic skills exercise can be performed individually or in groups. It should take about 15–30 minutes to complete. III. Follow-Up A. Rank-order your four alternatives in terms of probable success. Make any necessary assumptions. B. Identify alternatives other than the four that you identified above. C. Can more than one alternative be pursued simultaneously? Which ones? D. Develop an overall strategy for trying to save the hotel while also protecting your own interests. Students’ answers will vary considerably, depending upon which alternative they prefer and on the assumptions they make. However, all students should see that significant changes must occur in the near future, and will involve the owners, franchisers, employees, and managers. You can point out to students that, in many decisions, there are often additional opportunities to implement alternatives simultaneously, using the best features of each. Finally, students should realize that, in the face of a difficult situation, protecting one’s self-interests may involve seeking another job, even while continuing to work toward a happy resolution at the current job. Chapter Closing Case cULTIVATING INNOVATION AT IKEA IKEA is the brainchild of the Swedish entrepreneur, Ingvar Kamprad. To its many admirers, IKEA is the cult-like furniture store featuring inexpensive products with minimalist European design. The main reason for the company’s striking world-wide success is its relentless focus on innovation – both in terms of products as well as processes. Discussion Starter: Ask students if they had shopped at IKEA? If so, have them share with the class what they perceive to be the major differences between IKEA and the typical furniture store. 1. Case Question 1: You’re an IKEA store manager, and corporate headquarters has instructed you to change the layout of your store. The change must be “dramatic,” but the details are up to you. Wanting to make the most of the opportunity, you intend to manage the project as planned change. What steps will you take to ensure that you’ll be successful? The chapter defines a planned change as “change that is designed and implemented in an orderly and timely fashion in anticipation of future events.” Nevertheless, this is change and so you (as the store manager) have to anticipate resistance to change from employees and customers. This is a good question to allow students to use Kurt Lewin’s change model and have students identify typical change resistors, etc. 2. Case Question 2: There’s an IKEA TV ad that features a discarded lamp, forsaken on a rainy night in some American city. A man looks at the camera and says in a sympathetic Swedish accent, “Many of you feel bad for this lamp,” and then, after a well-timed pause, “That’s because you’re crazy.” What’s the message of the commercial? IKEA wants consumers, typically their American consumers, to stop thinking of furniture as durable goods that they buy and keep forever. This commercial stresses the importance of “letting go” and think about replacing the “old’ product with a new one. Rather than feel sorry about the old lamp, the commercial urges people (albeit subtly) to discard the old and buy a new replacement. 3. Case Question 3: One IKEA executive says that the current global economic situation has “pushed innovation” at the company. In fact, he says, “This is a great time to be more innovative.” Explain what he means. IKEA competes on design and its low prices. As the case states, IKEA prices are typically 20-50 percent lower than competing stores. Product design and development starts with the price point. As the global economic situation affects people’s buying power, IKEA has to continually innovate to push down prices. It is indeed a great time for the company to be innovative. 4. Case Question 4: Would you want to manage an IKEA store? Why or why not? Managing an IKEA store could be an intriguing opportunity for several reasons. Firstly, the company's commitment to innovation, both in product design and operational processes, presents an exciting environment for a manager to be involved in. IKEA's culture of innovation fosters continuous improvement and creativity, which could provide a stimulating and dynamic work environment. Secondly, IKEA's global success and strong brand reputation offer managers the chance to be part of a recognized and respected company. Working for a brand that is synonymous with affordable yet stylish furniture could be professionally rewarding and provide a sense of pride in contributing to the company's ongoing success. Moreover, managing an IKEA store would offer the opportunity for significant customer interaction. Helping customers navigate through the store's wide range of products and providing assistance in furnishing their homes could be fulfilling and enjoyable for individuals who enjoy working with people. However, managing an IKEA store also comes with its challenges. The fast-paced nature of retail operations, especially in a large-scale store like IKEA, can be demanding and require strong leadership and organizational skills. Balancing the needs of customers, employees, and the business's operational requirements could pose challenges for managers. Additionally, the retail industry often entails long hours, including weekends and holidays, to accommodate customer traffic and store operations. This could impact work-life balance and require a manager to be adaptable and flexible in their schedule. Ultimately, whether someone would want to manage an IKEA store depends on their individual career aspirations, personal preferences, and readiness to take on the responsibilities and challenges associated with retail management within a dynamic and innovative company like IKEA. CHAPTER 14 Managing Human Resources in Organizations END OF CHAPTER QUESTIONS Questions for Review 1. Describe the steps in the process of human resource planning. Explain the relationships between the steps. The first step is job analysis, in which the content and requirements of each of the organization’s jobs is defined. Then human resource managers must forecast the organization’s labor needs and supply in each job by looking at internal and external information. Finally, the demand and supply of workers in each job must be matched, which can involve increasing or decreasing the number of workers. 2. Describe the common selection methods. Which method or methods are the best predictors of future job performance? Which are the worst? Why? Common selection methods include application blanks in which applicants provide factual information about their background and experiences. Test may range from skills-based to personality tests. Interviews are another technique. Assessment centers provide realistic tasks for the applicant to complete under observation. The best predictors include assessment center and tests if the assessments are related to future job requirements. Application blanks are only able to obtain limited information. Interviews are often the worst indicators of job performance because of interviewer biases and lack of relation to job requirements. 3. Compare training and development, noting any similarities and differences. What are some commonly used training methods? Training and development both involve teaching skills to employees. However, training focuses on operational or technical employees and on their current job needs. Development is typically offered to managers and professionals and often is more future-oriented. 4. Define wages and benefits. List different benefits that organizations can offer. What are the three decisions that managers must make to determine compensation and benefits? Explain each decision. Wages are one type of compensation and refer to the hourly compensation paid to operating employees. Benefits include everything of value that organizations use to reward employees except compensation. Benefits could include such things as leave time, insurance, pensions, dependent care, free meals or use of gym facilities, and paid parking, and it may also include unusual or innovative rewards. The wage-level decision asks a firm to choose whether to offer compensation that is above, at, or below the average wages for that industry and region. The wage-structure decisions require choices about the relative worth of different tasks to the organization. Individual wage decisions are made for each person. They are influenced by the firm’s wage-level and wage-structure decisions as well as an evaluation of an individual’s experience, qualifications, and merit. Questions for Analysis 5. The Family and Medical Leave Act of 1993 is seen as providing much-needed flexibility and security for families and workers. Others think that it places an unnecessary burden on business. Yet another opinion is that the act hurts women, who are more likely to ask for leave, and shuffles them off to a lowpaid “mommy track” career path. In your opinion, what are the likely consequences of the act? You can adopt one of the viewpoints expressed above or develop another. Explain your answer. The consequences of the Family and Medical Leave Act (FMLA) of 1993 are multifaceted and can vary depending on one's perspective. Advocates of the FMLA argue that it provides much-needed flexibility and security for families and workers by allowing eligible employees to take unpaid leave for certain family and medical reasons without risking their job security. This viewpoint emphasizes the importance of work-life balance and the ability for employees to attend to their family and health needs without fear of repercussions from their employer. On the other hand, critics of the FMLA argue that it places an unnecessary burden on businesses, particularly small businesses, by requiring them to accommodate employee leave requests and maintain staffing levels during absences. This viewpoint highlights concerns about the potential financial and operational challenges that FMLA compliance may pose for employers, especially those with limited resources. Another perspective on the FMLA is that it may inadvertently contribute to gender disparities in the workplace. Some argue that women, who are more likely to take advantage of FMLA leave for family-related reasons, may face career consequences such as being relegated to lower-paid "mommy track" positions or experiencing slower career advancement compared to their male counterparts. This viewpoint raises important questions about the potential unintended consequences of family leave policies on gender equality in the workforce. In my opinion, while the FMLA represents a significant step forward in recognizing the importance of work-life balance and supporting employees' family and medical needs, it is essential to consider its potential impacts on both employers and employees. Balancing the interests of workers with the needs of businesses is crucial to ensure the effectiveness and sustainability of family leave policies. Additionally, efforts to address gender disparities and promote equal opportunities for career advancement should be integrated into broader discussions about work-family policies to mitigate any unintended negative consequences. Ultimately, ongoing evaluation and refinement of family leave policies are necessary to strike a balance between supporting employees' well-being and maintaining a thriving and competitive business environment. 6. How do you know a selection device is valid? What are the possible consequences of using invalid selection methods? How can an organization ensure that its selection methods are valid? The information gained from a selection device must be able to predict future job success, which is known as validation. There are two forms of validation: (1) predictive validation—collecting information from employees or applicants and correlating it with actual job performance and (2) content validation—assessing actual job skills (determined by a job analysis) in a “work-sample testing” of applicants to measure their skill level. The use of invalid selection methods would tend to exclude applicants who would be high-performers if hired and to cause the organization to instead hire workers who do not have the characteristics necessary for success. Validity can best be achieved by ensuring that all predictors used for selection are performance based. 7. In a right-to-work state, workers are permitted to decide for themselves whether to join a union. In other states, workers may be required to join a union to obtain certain types of employment. If you live in a right-to-work state, do you agree that the choice to join a union should be made by each individual worker? If you do not live in a right-to-work state, do you agree that individuals should be required to join a union? Finally, if the choice were yours to make, would you join a union? Explain your answers. (Hint: Right-to-work states are generally in the South, Midwest, and parts of the West. If you do not know whether you live in a right-to-work state, visit the National Right to Work Legal Defense Foundation website at www.nrtw.org/rtws.htm.) In right-to-work states, individuals have the freedom to choose whether to join a union or not. Advocates of right-to-work laws argue that they uphold individual freedom and protect workers from being compelled to join a union or pay union dues as a condition of employment. They believe that workers should have the autonomy to make their own decisions regarding union membership based on their personal beliefs and interests. On the other hand, opponents of right-to-work laws argue that they undermine the collective power of unions and weaken workers' bargaining power. They contend that unions play a crucial role in advocating for fair wages, benefits, and working conditions for all workers, and that requiring union membership or payment of dues helps ensure that unions have the resources needed to represent workers effectively. In states where union membership is not required for certain types of employment, individuals still have the option to join a union if they believe it will benefit them. However, they are not compelled to do so by law. This approach balances the interests of both workers and unions, allowing individuals to make their own choices while also recognizing the importance of collective representation in the workplace. If given the choice, whether or not I would join a union would depend on various factors such as the specific workplace conditions, the role of the union in advocating for workers' rights, and my personal beliefs and priorities. Ultimately, the decision to join a union should be based on careful consideration of the potential benefits and drawbacks, as well as individual circumstances and preferences. Questions for Application 8. Choose three occupations that interest you. (The Labor Department’s website has a full list, if you need help choosing.) Then access the Department of Labor, Bureau of Labor Statistics, online Occupational Outlook Handbook at www.bls.gov/oco. What are the job prospects like in each of these fields? Based on what you read at the website, do you think you would enjoy any of these occupations? Why or why not? Here is an example response: “One occupation that interests me is that of a public accountant. According to the BLS, the demand for accountants will continue to grow at about an average rate, keeping pace with the growth in the economy. I would enjoy working as an accountant because I enjoy detailed work, my math skills are good, and I like using computers. I might not like the relative isolation that is part of an accounting career, so I would probably tend to seek a position that involved a lot of client contact.” 9. Consider a job that you have held or with which you are familiar. Describe how you think an organization could best provide a realistic job preview for that position. What types of information and experiences should be conveyed to applicants? What techniques should be used to convey the information and experiences? Let's consider a retail sales associate position for which an organization could provide a realistic job preview: 1. Informational Materials: • Job Description: Provide a detailed job description outlining the responsibilities, tasks, and expectations associated with the role. This should include information about customer service, product knowledge, sales targets, and operational tasks. • Company Culture and Values: Share information about the company's culture, values, and mission statement to give applicants insight into the organization's ethos and how they align with the company's values. • Work Environment: Describe the physical work environment, including the layout of the store, typical work hours, and any relevant policies or procedures. • Compensation and Benefits: Clearly outline the compensation structure, including hourly pay, commission potential, and any available benefits such as healthcare, employee discounts, or opportunities for advancement. 2. Experiential Opportunities: • Store Tour: Offer applicants a guided tour of the store to familiarize them with the layout, product offerings, and customer flow. This can help applicants visualize themselves in the role and understand the day-to-day operations. • Job Shadowing: Allow applicants to shadow current sales associates during a shift to observe firsthand what the job entails. This provides an opportunity for applicants to ask questions, interact with customers, and gain insight into the role's responsibilities. • Role-playing Exercises: Engage applicants in role-playing scenarios simulating common interactions they may encounter as sales associates, such as assisting a customer with a purchase or handling a customer complaint. This allows applicants to demonstrate their skills and receive feedback on their performance. 3. Interactive Communication: • Q&A Session: Host a question and answer session with current employees or hiring managers to address any questions or concerns applicants may have about the role, company culture, or career advancement opportunities. • Employee Testimonials: Share testimonials or success stories from current or former employees about their experiences working in the role. This can provide valuable insights and perspectives from individuals who have firsthand knowledge of the job. Overall, providing a realistic job preview for a retail sales associate position involves a combination of informational materials, experiential opportunities, and interactive communication techniques. By offering applicants a comprehensive understanding of the role, work environment, and company culture, organizations can ensure that candidates have realistic expectations and are well-equipped to make informed decisions about pursuing the position. 10. Contact a local organization to determine how that organization evaluates the performance of employees in complex jobs such as middle- or higher-level manager, scientist, lawyer, or market researcher. What problems with performance appraisal can you note? The common methods organizations use to evaluate the performance of employees in complex jobs and highlight potential problems with performance appraisal. 1. 360-Degree Feedback: Many organizations use 360-degree feedback systems to evaluate the performance of employees in complex roles. This involves collecting feedback from multiple sources, including peers, subordinates, supervisors, and sometimes external stakeholders, to provide a comprehensive assessment of an employee's performance. 2. Goal Setting and Performance Metrics: Complex jobs often involve setting specific goals and performance metrics to measure success. Employees may have individual performance targets related to project completion, revenue generation, client satisfaction, or other key performance indicators (KPIs). 3. Qualitative Assessments: In addition to quantitative metrics, performance evaluations for complex roles often include qualitative assessments of competencies, skills, and behaviors relevant to the job. This may involve evaluating factors such as leadership ability, problem-solving skills, communication effectiveness, and strategic thinking. Potential Problems with Performance Appraisal in Complex Jobs: 1. Subjectivity: Evaluating performance in complex roles can be inherently subjective, as different stakeholders may have varying perspectives on what constitutes success or effective performance. This subjectivity can lead to biases in performance appraisal, particularly if feedback is based on personal opinions or relationships rather than objective criteria. 2. Lack of Clarity: Complex jobs may involve ambiguous or evolving job responsibilities, making it challenging to establish clear performance expectations and criteria for evaluation. Without clearly defined goals and metrics, performance appraisal may lack validity and reliability, leading to inconsistency and unfairness in evaluations. 3. Difficulty in Measuring Impact: Assessing the performance of employees in complex roles may be complicated by the difficulty of measuring the direct impact of their work on organizational outcomes. For example, it may be challenging to attribute success or failure in a project to the actions of a single manager or scientist, given the collaborative nature of many complex jobs. 4. Time and Resource Constraints: Conducting thorough performance evaluations for employees in complex roles requires significant time and resources, including gathering feedback from multiple sources, conducting in-depth assessments, and providing meaningful feedback and development opportunities. Organizations may struggle to allocate sufficient resources to performance appraisal processes, leading to superficial or infrequent evaluations. 5. Resistance to Feedback: Employees in complex roles may be more resistant to feedback, especially if they perceive performance appraisal as unfair or irrelevant to their job responsibilities. This resistance can hinder the effectiveness of performance appraisal processes and limit opportunities for employee development and improvement. Addressing these problems requires organizations to implement performance appraisal practices that are transparent, objective, and tailored to the unique characteristics of complex jobs. This may involve establishing clear performance expectations, using multiple sources of feedback, providing ongoing training and support for evaluators, and fostering a culture of openness and accountability around performance evaluation and feedback. END OF CHAPTER EXERCISES Building Effective Decision-Making Skills I. Purpose This decision-making exercise is designed to provide students with practice in data analysis and choice in issues related to career planning. II. Format This exercise should be performed by individual students outside of class and should take about 30 minutes to complete. Questions 6 and 7 may be used as the basis of an in-class discussion. III. Follow-Up A. Access a summary of the Department of Labor’s National Compensation Survey at http://stats.bls.gov/ncs/ocs/sp/ncbl0449.pdf. (If the page has been moved, search by the survey title.) Find the detailed data related to the occupation that you regard as your most likely career choice when you graduate. Then, locate detailed data about two other occupations that you might consider -- one with a salary that’s higher than that of your number-one career choice and one with a salary that’s lower. B. Next, record the hourly salary data for each of your three choices, and then use the hourly salary to project an expected annual income. (Hint: Full-time jobs require about 2,000 hours annually.) C. Based purely on salary information, which occupation would be the “best” for you? Students’ answers will vary, depending on the occupations they choose and the information they find. The students will agree that, if salary is the only variable under consideration, higher salaries are preferable to lower ones. D. Now, go to www.bls.gov/oco and access job descriptions for various occupations. Review the description for each of the three career choices that you’ve already investigated. E. Based purely on job characteristics, which occupation would be the “best” for you? Again, answers will vary, based on the occupations chosen and the students’ preferences. Every student should be able to find an occupation that would be interesting and rewarding to them. F. Is there any conflict between your answers to Questions 3 and 5? If so, how do you plan to resolve it? For some students, the highest-paid occupation also has the most desirable other characteristics. However, some students will find that their most desired jobs are not the most highly-paid. Students will have a variety of answers to the second part of the question ranging from plans to accept lower pay for a more desirable job to plans to “put up with” an undesirable job in order to achieve more pay. Creative solutions are possible, such as holding two jobs or working in a desirable field as a volunteer or part-time worker. It may be instructive for students to hear each others’ answers to this question because it may suggest new, creative solutions to them. G. Are there any job characteristics that you desire strongly enough to sacrifice compensation in order to get them? What are they? What are the limits, if any, on your willingness to sacrifice pay for these job characteristics? Every student, however, will identify some “floor” of acceptable pay and would refuse to accept any job, even the most desirable, if that minimum is not met. For some students, the floor may be relatively high, while for others it would be barely enough to cover survival essentials. Building Effective Technical Skills I. Purpose This exercise will develop the students’ understanding of the issues that must be considered when selecting job candidates. II. Format This technical skills exercise is best performed individually and should take about 20–30 minutes. III. Follow-Up A. Identify the most basic skills needed to perform each of the two jobs effectively. B. Identify the general indicators or predictors of whether a given individual can perform each job. Depending on which skills are mentioned in Question 1, Question 2 answers might include prior job experiences, formal education, performance on skills assessments, and personality traits, among others. C. Develop a brief set of interview questions that you might use to determine whether an applicant has the qualifications for each job. The questions will depend upon the answers to Question 2. Most students will mention asking about prior jobs, education, skills, and traits. D. How important is it for you, as a manager hiring an employee to perform a job, to possess the technical skills to perform the job that you’re trying to fill? Most students will reply that it is not important to have the technical skills. Managers often do not have the skills, but they are able to select candidates based on impartial assessments of those skills such as prior experiences or test scores. However, mangers need to be informed about which skills are needed; otherwise, they will not be able to select effectively. management at work the temptations of temping The case describes the nature of temporary employment and profiles various people who have either chosen or were forced to go in for temporary jobs. The case also describes the phenomenon of temp-to-perm job – a route that offers benefits to both the employee and the organization. Discussion Starter: Ask students if they have ever worked in a temporary job. If so, what attracted them to such a job? What were the drawbacks to holding a temporary job? It is also useful to have students look at temporary jobs from the employer’s viewpoint. How do you motivate such employees? 1. Case Question 1: You’re a senior manager at a growing business and you’re ready to add employees. Your HR manager has recommended a temp-to-perm policy. You know the advantages of this approach, but what might be some of the disadvantages? A temp-to-perm policy means that the firms hires temporary workers and make permanent those that pan out. This is akin to a try-before-you-buy approach to a product or a service. The disadvantage to the organization is that it is possible that the highly desirable temps may choose to leave before they are made permanent. In other words, the organization is in danger of not getting good permanent employees because the good temporary employees may leave before being made permanent. 2. Case Question 2: Assume that you’re a prospective job seeker (which you may very well be). What do you personally see as the advantages and disadvantages of taking a temp-to-perm position? Under what circumstances are you most likely to take a temp-to-perm position? The key advantage is that one can try various jobs before settling on one. One can look at the skills required to succeed in specific jobs and find one that best matches their skills. The downside is that as a temporary employee you keep jumping from job to job and this constant change and uncertainty may not suit everybody. Besides, the wages are lower than permanent jobs and also you get fewer benefits. When a person is young and is undecided on a career path, a temp-to-permanent path may be desirable. 3. Case Question 3: What sort of challenges are likely to confront a manager who supervises a mix of temporary and permanent employees? In what ways might these challenges differ if the temporary workers have been hired on a temp-to-perm basis rather than on a strictly temporary basis? There are motivation and performance evaluation issues present when a manager manages both permanent and temporary employees. The manager may not get the same “buy in” from temporary employees as he or she can expect from permanent employees. Of course, this problem is alleviated if the temps are on a temp-to-perm track. Solution Manual for Management Ricky W. Griffin 9781111969714
