CH-9-10 Managing Human Resources and Diversity – Understanding Management : Chapter Notes

This Document Contains Chapters 9 to 10 CHAPTER 9 MANAGING HUMAN RESOURCES AND DIVERSITY CHAPTER OUTLINE New Manager Self-Test: Getting the Right People on the Bus I. The Strategic Role of HRM Is to Drive Organizational Performance A. The Strategic Approach B. Building Human Capital to Drive Performance II. The Impact of Federal Legislation on HRM III. The Changing Nature of Careers A. The Changing Social Contract B. Innovations in HRM IV. Finding the Right People A. Human Resource Planning B. Recruiting C. Selecting V. Managing Talent A. Training and Development B. Performance Appraisal VI. Maintaining an Effective Workforce A. Compensation B. Benefits C. Rightsizing the Organization D. Termination VII. Diversity in the Workplace A. Diversity in Corporate America B. Diversity on a Global Scale VIII. Managing Diversity A. Diversity and Inclusion B. Diversity of Perspective C. Dividends of Workplace Diversity IX. Factors Shaping Personal Bias A. Workplace Prejudice, Discrimination, and Stereotypes New Manager Self-Test: Valuing Workplace Diversity B. Ethnocentrism X. Factors Affecting Women’s Careers A. The Glass Ceiling B. Opt-Out Trend C. The Female Advantage D. Enhancing Structures and Policies E. Increasing Awareness of Sexual Harassment ANNOTATED LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Explain the strategic role of human resource management. Answer: The term human resource management (HRM) refers to activities undertaken to attract an effective workforce, develop the workforce to its potential, and maintain the workforce over the long term. These goals take place within the larger organizational environment including competitive strategy, federal legislation, and societal trends. The organization’s competitive strategy may include mergers and acquisitions, downsizing to increase efficiency, international operations, or the acquisition of automated production technology. These strategic decisions determine the demand for skills and employees. The human resource strategy, in turn, must include the correct employee makeup to implement the organization’s strategy. 2. Describe federal legislation and societal trends that influence human resource management. Answer: Several federal laws have been passed to ensure equal employment opportunity (EEO). The point of the laws is to stop discriminatory practices that are unfair to specific groups and to define enforcement agencies for these laws. EEO legislation attempts to balance the pay given to men and women; provide employment opportunities without regard to race, religion, national origin, and sex; ensure fair treatment for employees of all ages; and avoid discrimination against disabled individuals. More recent legislation pertains to illegal aliens. 3. Explain what the changing social contract between organizations and employees means for workers and human resource managers. Answer: Not since the advent of mass production and modern organizations has a redefinition of work and career been so profound. Under the emerging social contract, each person must take care of herself or himself. Particularly in learning organizations, everyone is expected to be a self-motivated worker who has excellent interpersonal relationships and is continuously acquiring new skills. Employees take more responsibility and control in their jobs, becoming partners in business improvement rather than cogs in a machine. Organizations provide challenging work assignments as well as information and resources to enable workers to continuously learn new skills. HRM departments can help organizations develop a mix of training, career development opportunities, compensation packages, and rewards and incentives. They can provide career information and assessment, combined with career coaching to help employees determine new career directions. The new social contract can benefit both employees and organizations. 4. Show how organizations determine their future staffing needs through human resource planning. Answer: Human resource planning is the forecasting of human resource needs and the projected matching of individuals with expected vacancies. Human resource planning begins with several questions: What new technologies are emerging, and how will these affect the work system? What is the volume of the business likely to be in the next five to ten years? What is the turnover rate, and how much, if any, is avoidable? By anticipating future HRM needs, the organization can prepare itself to meet competitive challenges more effectively than organizations that react to problems only as they arise. 5. Describe the tools managers use to recruit and select employees. Answer: Recruiting involves practices that define the characteristics of applicants to whom selection procedures are ultimately applied. Today, much of the recruiting is done via the Internet and social media sites such as LinkedIn, Facebook, and Meetup. Many organizations use internal recruiting, or promotion from within, policies to fill their higher level positions. Internal recruiting has several advantages because it is less costly, generates higher employee commitment, development, and satisfaction and offers opportunities for career advancement to employees rather than outsiders. External recruiting is recruiting newcomers from outside the organization. A variety of outside sources provide applicants, including online recruiting services, advertising, state employment services, private employment agencies, job fairs, and employee referrals. Referrals are one of the cheapest and most reliable methods of external recruiting. 6. Describe how organizations develop and maintain an effective workforce through training, performance appraisals, and the administration of wages, salaries, and benefits. Answer: Training and development represent a planned effort by an organization to facilitate employees’ learning of job related behaviors. Some authors use the term “training” to refer to teaching lower level or technical employees how to do their present jobs, while development refers to teaching managers the skills needed for both present and future jobs. For simplicity, we will refer to both as training. Performance appraisal is another technique for developing an effective workforce. Performance appraisal comprises the steps of observing and assessing employee performance, recording the assessment, and providing feedback to the employee. Managers use performance appraisal to describe and evaluate the employees’ performance. Performance appraisal can help measure the extent to which training has been effective or to which additional training may be required. The performance appraisal measurement is sometimes used as the basis for determining any changes in wages, salaries, and benefits. 7. Understand the pervasive demographic changes occurring in the domestic and global marketplace and how corporations are responding. Answer: The importance of cultural diversity and employee attitudes that welcome cultural differences will result from the inevitable changes taking place in the workplace, in our society, and in the economic environment. These changes include globalization and the changing workforce. In the past, the United States was a place where people of different national origins, ethnicities, races, and religions came together and blended to resemble one another. Opportunities for advancement were limited to those workers who fit easily into the mainstream of the larger culture. Now organizations recognize that everyone is not the same and that the differences people bring to the workplace are valuable. Companies are learning that these differences enable them to compete globally and to acquire rich sources of new talent. Most organizations must undertake conscious efforts to shift from a monoculture perspective to one of pluralism. Management activities required for a culturally diverse workforce starts with top managers who can help shape organizational values and employee mindsets about cultural differences. In addition training programs can promote knowledge and acceptance of diverse cultures and educate managers on valuing the differences. 8. Recognize the factors that affect women’s opportunities, including the glass ceiling, the opt-out trend, and the female advantage. Answer: The glass ceiling is an invisible barrier that separates women and minorities from top management positions. They can look up through the ceiling and see top management, but prevailing attitudes and stereotypes are invisible obstacles to their own advancement. Women and minorities are often excluded from informal manager networks and don’t get access to the type of general and line management experience required for moving to the top. Glass walls serve as invisible barriers to important lateral movement within the organization. Many women choose to get off the fast track long before they hit the glass ceiling. In this opt-out trend, highly-educated, professional women are deciding that corporate success isn’t worth the price in terms of reduced family and personal time. Some are opting out to be stay-at-home moms, while others want to continue working, but just not in the kind of fast-paced, competitive, aggressive environment that exists in most corporations. Critics argue that this is just another way to blame women themselves for the dearth of female managers at higher levels. Some people think women might actually be better managers, partly because of a more collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s global and multicultural environment. As attitudes and values change with changing generations, the qualities women seem to possess may lead to a gradual role reversal in organizations. Women of all races and ethnic groups are outpacing men in earning bachelor’s and master’s degrees. Over all, women’s participation in both the labor force and civic affairs has steadily increased since the mid-1950s, while men’s participation has slowly but steadily declined. LECTURE OUTLINE NEW MANAGER SELF-TEST: GETTING THE RIGHT PEOPLE ON THE BUS Most new managers are shocked at the large amount of time, effort, and skill required to recruit, place, and retain the right people. The right people can make an organization great; the wrong people can be catastrophic. This exercise helps students determine their expectations and beliefs for handling the people part of their management jobs. Human resource management refers to the design and application of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. This term includes activities undertaken to attract, develop, and maintain an effective workforce. HRM is equally important for government and nonprofit organizations. Over the past decade, human resource management has shed its old “personnel” image and gained recognition as a vital player in corporate strategy. Today, all managers need to be skilled in the basics of human resource management. I. THE STRATEGIC ROLE OF HRM IS TO DRIVE ORGANIZATIONAL PERFORMANCE A. The Strategic Approach Exhibit 9.1, Exhibit 9.2 The strategic approach to human resource management recognizes three key elements. First, all managers are involved in human resource management. Second, employees are viewed as assets. In today’s brutally competitive business environment, how a company manages its workforce may be the single most important factor in sustained competitive success. Third, HRM is a matching process, integrating the organization’s strategy and goals with the correct approach to managing human capital. Current strategic issues of particular concern to managers include: • right people to become more competitive on a global basis; • right people for improving quality, innovation, and customer service; • right people to retain after mergers, acquisitions, or downsizing; and • right people to apply new information technology for e-business. The three broad activities of HRM are to attract an effective workforce, develop the workforce to its potential, and maintain the workforce over the long term. Achieving these goals requires skills in planning, training, performance appraisal, wage and salary administration, benefit programs, and termination techniques. Discussion Question #1: Assume that it is the year 2025. In your company, central planning has given way to frontline decision-making, and bureaucracy has given way to teamwork. Shop floor workers use handheld devices and robots. A labor shortage currently affects many job openings, and the few applicants you do attract lack skills to work in teams, make their own production decisions, or use sophisticated technology. As vice president of HRM since 2010, what should you have done to prepare for this situation? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. Building Human Capital to Drive Performance Exhibit 9.3 1. Human capital refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees. To build human capital, HRM develops strategies for finding the best talent, enhancing their skills and knowledge with training programs and opportunities for personal and professional development, and providing compensation and benefits that support the sharing of knowledge and appropriately reward people for their contributions to the organization. II. THE IMPACT OF FEDERAL LEGISLATION ON HRM Exhibit 9.4 Several federal laws have been passed to insure equal employment opportunity (EEO). The purpose of these laws is to stop discriminatory practices that are unfair to specific groups and define enforcement agencies for these laws. EEO legislation attempts to balance the pay given to men and women and provide employment opportunities without regard to race, religion, national origin, sex, age, or disability. The Civil Rights Act of 1964 created the Equal Employment Opportunity Commission (EEOC), the major agency involved with employment discrimination. Discrimination occurs when some applicants are hired or promoted based on criteria that are not job relevant. When discrimination is found, remedies include back pay and affirmative action. Affirmative action requires an employer to take positive steps to guarantee equal employment opportunities for people within protected groups. Failure to comply with EEO legislation can result in substantial fines and penalties for employers. One issue of growing concern is sexual harassment, which is a violation of Title VII of the Civil Rights Act. The EEOC guidelines specify that behavior such as unwelcome advances, requests for sexual favors, and other verbal and physical conduct of a sexual nature becomes sexual harassment when submission to the conduct is tied to continued employment or advancement, or when the behavior creates an intimidating, hostile, or offensive work environment. III. THE CHANGING NATURE OF CAREERS Exhibit 9.5 A. The Changing Social Contract 1. In the old social contract, the employee contributed ability, education, loyalty, and commitment in return for the company providing wages and benefits, work, advancement, and training. Volatile changes in the environment have disrupted this contract. Organizations have downsized and careers no longer necessarily progress up a vertical hierarchy. 2. The new social contract is based on the concept of employability rather than lifetime employment. Individuals are responsible for developing their own skills and abilities, understanding their employer’s business needs, and demonstrating their value to the organization. The employer, in turn, invests in creative training and development opportunities so that people will be more employable when the company no longer needs them. 3. The new social contract can benefit both employees and organizations. However, some companies take the new approach as an excuse to treat people as economic factors to be used when needed and then let go. Studies have found lower employee and firm performance and decreased commitment in companies where the interaction between employer and employee is treated as an economic exchange rather than a genuine human and social relationship. B. Innovations in HRM 1. Branding the Company as an Employer of Choice a. An employer brand is similar to a product brand except that rather than promoting a specific product; its aim is to make the organization seem like a highly desirable place to work. b. Employer-branding campaigns are like marketing campaigns to “sell” the company and attract the best job candidates. However, many large, well-known companies are also using employer branding as companies fight for talent. 2. Using Temporary and Part-Time Employees a. A 2012 survey by Workforce Management has found that nearly 44 percent of employers are using more contingent workers than a decade ago. People in these temporary jobs do everything from data entry to becoming the interim CEO. Highly skilled supertemps do mission-critical work. b. For organizations, the primary goals are to access specialized skills for specific projects, enabling the company to maintain flexibility and keep costs low. c. Contingent workers are people who work for an organization, but not on a permanent or full-time basis. This may include temporary placements, contracted professionals, leased employees, or part-time workers. 3. Promoting Work-Life Balance a. Telecommuting, or using computers and telecommunications equipment to do work without going to an office, is one way organizations are helping employees lead more balanced lives. Flexible scheduling for regular employees is also important in today’s workplace, with approximately 53 percent of the U.S. workforce having flexible hours. b. Broad work-life initiatives have become a critical retention strategy. Managers realize that people have personal needs that may require special attention. Some HR responses include benefits such as on-site gym facilities and childcare, assistance with arranging child and eldercare, and paid leaves. Discussion Question #6: As a manager, how would you draw up a telecommuting contract with a new employee? Include considerations such as job description, compensation and benefits, performance measures, training, and grounds for dismissal. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ IV. FINDING THE RIGHT PEOPLE Exhibit 9.6 The first step in attracting a workforce is planning, predicting the need for new employees based on the types of vacancies that exist. The second step is to communicate with potential applicants; the third step is to select those with the best potential; finally, the new employee is welcomed to the organization. Underlying the organization’s effort to attract employees is a matching model, in which the organization and the individual attempt to match the needs, interests, and values they offer each other. Both the company and the employee are interested in finding a good match. A. Human Resource Planning 1. Human resource planning is the forecasting of human resource needs and the projected matching of individuals with expected job vacancies. Human resource planning begins with several questions: a. What new technologies are emerging, and how will they affect the work system? b. What is the volume of business likely to be in the next five to ten years? c. What is the turnover rate, and how much, if any, is avoidable? 2. The responses to these questions are used to formulate specific questions pertaining to HR activities, such as: a. What types of engineers will we need and how many? b. How many administrative personnel will we need to support the additional engineers? c. Can we use temporary, part-time, or virtual workers to handle some tasks? 3. Answers to these questions help define the direction for the organization’s HRM strategy. B. Recruiting Recruiting, sometimes referred to as talent acquisition, is defined as activities or practices that define the characteristics of applicants to whom selection procedures are applied. Many organizations use internal recruiting (promote from within) policies. Internal recruiting is less costly, generates higher employee commitment, and offers career advancement. External recruiting gains newcomers from advertising, state employment services, online recruiting services, private employment agencies, job fairs, and employee referrals. 1. Assessing Jobs. Basic building blocks of human resource management include job analysis, job descriptions, and job specifications. Job analysis is a systematic process of gathering and interpreting information about the essential duties, tasks, responsibilities, and context of a job. A written job description is a clear and concise summary of the specific tasks, duties, and responsibilities of a job. A job specification outlines the knowledge, skills, education, physical abilities, and other characteristics needed to adequately perform the job. 2. Realistic job previews. A realistic job preview (RJP) gives applicants all pertinent and realistic information, positive and negative, about the job and the organization. RJPs enhance employee satisfaction and reduce turnover, because they facilitate matching individuals, jobs, and organizations. 3. Social Media. Today, much of the recruiting is done via the Internet and social media sites such as LinkedIn, Facebook, and Meetup. In a 2012 survey of global HR executives, 46 percent reported using social media to find good candidates. Companies still use online recruiting methods, but the trend is towards more targeted online recruiting. 4. Internships. An internship is an arrangement whereby an intern, usually a high school or college student, exchanges free or low-cost labor for the opportunity to explore whether a particular career is appealing. Internships are an increasingly popular approach to recruiting because they provide a way to “test-drive” a potential employee. C. Selecting Exhibit 9.7 In the selection process, employers assess applicants’ characteristics in an attempt to determine the “fit” between the job and applicant characteristics. The most frequently used selection devices are the application form, interview, employment test, and assessment center. 1. Application Form. The application form is used to collect information about the applicant’s education, previous job experience, and other background characteristics. Employers should avoid questions that are irrelevant to job success. Additionally, the application form should not ask questions that create an adverse impact on protected groups. 2. Interview. The interview serves as a two-way communication channel that allows both the organization and the applicant to collect information that would otherwise be difficult to obtain. This selection technique is used in the hiring process in almost every job category in nearly every organization, but it is not generally a valid predictor of job performance, though it does have face validity (i.e. it seems valid). This is another area in which employers can get into legal trouble if they ask questions that violate EEO guidelines. Some organizations are using panel interviews, in which the candidate meets with several interviewers who take turns asking questions. Exhibit 9.8 • Structured interviews use a set of standardized questions that are asked of every applicant so comparisons can easily be made. These may include biographical interviews, which ask about the person’s previous life and work experiences; behavioral interviews, which ask people to describe how they have performed a certain task or handled a particular problem; and situational interviews, which require people to describe how they might handle a hypothetical situation. • Non-directive interviews allow the applicant a great deal of freedom in determining the course of the conversation, with the interviewer taking care not to influence the person’s remarks. • In addition, some firms are using offbeat approaches, also known as extreme interviewing, to test job candidates’ ability to handle problems, cope with change, think on their feet, and work well with others. Discussion Question #4: Which selection criteria (personal interview, employment test, assessment center) do you think would be most valuable for predicting effective job performance for a college professor? For an assembly line worker in a manufacturing plant? Discuss. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3. Online Checks. One of the newest ways of gauging whether a candidate is right for the company is by seeing what the person has to say about him or herself on blogs and social networking sites. HR managers may also search online for criminal records, credit history, and other indications of the candidate’s honesty, integrity, and stability. One way in which HR managers gauge an applicant’s suitability for an open position is by checking what the applicant says on social media sites. Maryland was the first state to pass a law making it illegal to ask job applicants for their social networking passwords. V. MANAGING TALENT Exhibit 9.9 A. Training and Development 1. On-the-Job Training: Training and development is a planned effort by an organization for employees to learn job related behaviors. The most common method of training is on the job training (OJT), in which an experienced employee “adopts” a new employee to teach him or her how to perform job duties. Cross-training places an employee in a new position for as short as a few hours or for as long as a year to develop new skills and give the organization flexibility. 2. Social Learning. Social learning basically means learning informally from others by using social media tools, including mobile technologies, social networking, wikis and blogs, virtual games, and so forth. The majority of organizational learning occurs through informal rather than formal channels, so managers are supporting the use of social media technology for learning in day-to-day work. These tools allow people to share information, access knowledge, find resources, and collaborate in a natural way. 3. Corporate Universities. A corporate university is an in-house training and education facility that offers broad-based learning opportunities for employees—and frequently for customers, suppliers, and strategic partners as well—throughout their careers. 4. Promotion from Within. Promoting from within helps companies retain valuable employees. This provides challenging assignments, prescribes new responsibilities, and helps employees grown by expanding and developing their abilities. B. Performance Appraisal Exhibit 9.10 1. Performance appraisal is observing and assessing employee performance, recording the assessment, and providing feedback to the employee. During performance appraisal, skilled managers give feedback and praise concerning the acceptable elements of the employee’s performance. Performance appraisal can also reward high performers with merit pay, recognition, and other rewards. a. Recent thinking is that linking performance appraisal to rewards has unintended consequences, and that it should be ongoing rather than something that is done once a year as part of a consideration of raises. HRM professionals concentrate on the accurate assessment of performance and on training managers to the use the performance appraisal interview effectively. 2. Assessing Performance Accurately a. To obtain an accurate performance rating, managers must acknowledge that jobs are multidimensional and performance may be multidimensional as well. The 360- degree feedback is a process that uses multiple raters, including self-rating, as a way to increase self-awareness of strengths and weaknesses and guide employee development. Members of the appraisal group may include supervisors, co-workers, and customers to provide appraisal of the employee from a variety of perspectives. b. Performance review ranking system is a method in which managers evaluate direct reports relative to one another and categorizes each on a scale. These systems rank employees according to their relative performance: 20 percent would be placed in the top group of performers; 70 percent have to be ranked in the middle; and 10 percent are ranked at the bottom. The bottom tier are given a set period of time to improve their performance, and if they don’t improve, they are fired. The advantages of this system include identifying the best and worst performers, and creating and sustaining a high performance culture in which people continuously improve. The disadvantages are that it may increase cutthroat competition among employees, discourage collaboration and teamwork, and potentially harm morale. 3. Performance Evaluation Errors a. Stereotyping occurs when a rater places an employee into a class or category based on one or a few traits or characteristics. b. Halo effect refers to giving an employee the same rating on all dimensions of the job even if performance is good on some dimensions and not good on others. c. The behaviorally anchored rating scale (BARS) is developed from critical incidents pertaining to job performance and is designed to help raters avoid performance evaluation errors. Each job performance scale is anchored with specific behavioral statements that describe varying degrees of performance. VI. MAINTAINING AN EFFECTIVE WORKFORCE A. Compensation 1. Compensation refers to all monetary payments and all goods or commodities used in lieu of money to reward employees. Developing an effective compensation system is an important part of human resource management because it helps to attract and retain talented workers. A company’s compensation system has an impact on strategic performance. Human resource managers design the pay and benefit systems to fit the company strategy and to provide compensation equity. 2. Wage and Salary Systems a. Management’s strategy for the organization should be a critical determinant of the features and operations of the pay system. Job-based pay links compensation to the specific tasks that an employee performs. Skill-based pay systems encourage employees to develop skills and competencies, making them more valuable to the organization and more employable if they leave. 3. Compensation Equity a. Good managers strive to maintain a sense of fairness and equity within the pay structure to maintain employee morale. Job evaluation is the process of determining the worth of jobs within the organization through an examination of job content. The intent is to pay employees fairly. Wage and salary surveys show what other organizations pay incumbents in jobs that match a sample of “key” jobs selected by the organization. 4. Pay-for-performance a. Pay-for-performance, also called incentive pay, ties at least part of the compensation to employee effort and performance through merit-based pay, bonuses, team incentives, gainsharing or profit sharing. With pay-for-performance, incentives are aligned with the behaviors needed to help the organization achieve its strategic goals. However, recent years have shown the potential dangers of misdirected pay-for-performance plans. B. Benefits 1. The best human resource managers know a compensation package requires more than money. Although salary is an important component, benefits are equally important. Benefits make up 40 percent of labor costs in the U.S. Some benefits are required by law such as Social Security, unemployment compensation, and worker’s compensation. One reason that benefits make up such a large portion of the compensation package is that health care costs have been increasing so quickly. 2. Other types of benefits, such as health insurance, vacations, or educational reimbursement are not required by law but are provided by organizations to maintain an effective workforce. C. Rightsizing the Organization 1. Rightsizing, also called downsizing, refers to intentionally reducing the company’s workforce to the point where the number of employees is deemed to be right for the company’s current situation. The goal is to make the company stronger and more competitive by aligning the size of the workforce with the company’s current needs. 2. Unless HRM departments carefully manage the rightsizing process, layoffs can lead to decreased morale and performance. Managers can smooth the rightsizing process by regularly communicating with employees and providing them with as much information as possible. Managers can also use training and development to help address the emotional needs of remaining employees. D. Termination 1. Despite the best efforts of line managers and HRM professionals, the organization will lose employees. Terminations are valuable in maintaining an effective workforce in two ways. a. Employees who are poor performers can be dismissed. Productive employees often resent disruptive, low-performing employees who are allowed to stay with the company and receive pay comparable to theirs. b. Employers can use exit interviews as an inexpensive way to learn about pockets of dissatisfaction within the organization and use that information to reduce future turnover. An exit interview is an interview conducted with departing employees to determine why they are leaving. 2. Enlightened companies try to find a smooth transition for departing employees. By showing concern, the company communicates the value of human resources and helps maintain a positive corporate culture. VII. DIVERSITY IN THE WORKPLACE Exhibit 9.11 A. Diversity in Corporate America Exhibit 9.12, Exhibit 9.13 1. Managers are learning that the differences people bring to the workplace enable their companies to compete globally and tap into rich sources of new talent. Moreover, vast changes are occurring in today’s workplace and consumer base. The average worker is older now, and many more women, people of color, and immigrants are seeking job and advancement opportunities. a. Unprecedented generational diversity. Today’s workforce is in a state of flux as a blend of three generations (Baby Boom, Gen-X, and Gen-Y) present new management challenges. b. Aging workers. A baby boomer turns 60 every seven seconds, continuously bumping up the average age of the workforce. While the number of workers between 25 and 45 years old is expected to decline from 66.9 percent to 63.7 percent by 2020, the number of baby boomers age 55 years and older will leap from 19.5 percent to 25.2 in the same period. c. Increased diversity. Foreign-born workers make up 16 percent of the U.S. workforce and are most likely employed in service industries, such as food preparation, cleaning, and maintenance. Of the total number of foreign-born workers, nearly half are Hispanic and 23 percent are Asian. d. Growth in women workers. Today, women outnumber men in the workplace, and their numbers are projected to grow slightly faster, at 7.4 percent compared to 6.3 percent for men. 2. The ability of organizations to manage diversity has not kept pace with these demographic trends, thus creating a number of significant challenges for minority workers and women. Corporations that truly value diversity will recognize pay inequality and discrimination in the workplace and make progress toward eliminating them. B. Diversity on a Global Scale Managers across the globe wrestle with many of the same diversity challenges as U.S. managers, especially concerning the progression of women into upper management positions. To boost the percentage of women on the corporate boards of European countries, the European Union is studying whether to introduce quotas across the continent. Japanese companies have an even greater struggle to bridge the gender gap on corporate boards. Part of it relates to tepid economic growth and societal expectations. The progression of women into executive positions continues to be slow in both U.S. and global corporations, but innovative companies are initiating programs to boost women’s advancement into higher levels of responsibility. VIII. MANAGING DIVERSITY A. Diversity and Inclusion Exhibit 9.14 1. Diversity is defined as all the ways in which employees differ. Many companies once defined diversity in terms of race, age, gender, lifestyle, and disability. Today, companies are embracing a more inclusive definition of diversity that recognizes a spectrum of differences that influence how employees approach work, interact with each other, derive satisfaction from their work, and define who they are as people in the workplace. 2. Inclusion is the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated. Inclusion creates a strong sense of belonging where all people can have their voices heard and appreciated. 3. Managing diversity, a key management skill in today’s global economy, means creating a climate in which the potential advantages of diversity for organizational or group performance are maximized while the potential disadvantages are minimized. B. Diversity of Perspective 1. Diversity of perspective is achieved when a manager creates a heterogeneous team made up of individuals with diverse background and skill sets. By tapping into the strengths of diversity, teams are more likely to experience higher efficiency, better quality, less duplication of effort among team members, and increased innovation and creativity. C. Dividends of Workplace Diversity Exhibit 9.15 2. Corporations that build strong, diverse organizations reap numerous dividends, including: a. Better use of employee talent. Companies with the best talent are the ones with the best competitive advantage. b. Increased understanding of the marketplace. A diverse workforce is better able to anticipate and respond to changing consumer needs. c. Enhanced breadth of understanding in leadership positions. Diverse top management teams tend to be less myopic in their perspectives. d. Increased quality of team problem solving. Teams with diverse backgrounds bring different perspectives to a discussion that result in more creative ideas and solutions. e. Reduced costs associated with high turnover, absenteeism, and lawsuits. Companies that foster a diverse workforce reduce turnover, absenteeism, and the risk of lawsuits. IX. FACTORS SHAPING PERSONAL BIAS A. Workplace Prejudice, Discrimination, and Stereotypes Exhibit 9.16 1. Prejudice is the tendency to view people who are different as being deficient. Discrimination occurs when people act out their prejudicial attitudes toward other people who are targets of their prejudice. Although blatant discrimination is not as widespread as in the past, bias in the workplace often shows up in subtle ways. A stereotype is a rigid, exaggerated, irrational belief associated with a particular group of people. To be successful managing diversity, managers need to eliminate harmful stereotypes from their thinking, shedding any biases that negatively affect the workplace. Managers can learn to value differences, which means they recognize cultural differences and see them with an appreciative attitude. 2. Stereotype threat describes the psychological experience of a person who, usually engaged in a task, is aware of a stereotype about his or her identity group suggesting that he or she will not perform well on that task. People most affected by stereotype threat are those we consider as disadvantaged in the workplace due to negative stereotypes–racial and ethnic minorities, members of lower socioeconomic classes, women, older people, gay and lesbian individuals, and people with disabilities. NEW MANAGER SELF-TEST: VALUING WORKPLACE DIVERSITY This exercise helps students understand their attitudes towards workplace diversity reflected in their personal values. B. Ethnocentrism 1. Ethnocentrism is the belief that one’s own group and subculture are inherently superior to other groups and cultures, thus making it difficult to value diversity. The business world tends to reflect values, behaviors, and assumptions based on the experiences of a homogeneous, white, middle class, and male workforce. Most management theories presume workers share similar values, beliefs, motivations, and attitudes about work and life in general. 2. Ethnocentric viewpoints produce a monoculture that accepts only one way of doing things and one set of values and beliefs. These assumptions create a dilemma for people of color, women, gay people, disabled, the elderly, and others who feel pressure to conform and are presumed deficient because of differences. Valuing diversity means ensuring that all people are given equal opportunities in the workplace. 3. The goal for organizations seeking cultural diversity is pluralism rather than a monoculture and ethnorelativism rather than ethnocentrism. Ethnorelativism is the belief that groups and subcultures are inherently equal. Pluralism means an organization accommodates several subcultures. It seeks to fully integrate into the organization the employees who feel isolated and ignored. Most organizations are making a conscious effort to shift from a monoculture to pluralism. X. FACTORS AFFECTING WOMEN’S CAREERS A. The Glass Ceiling 1. The glass ceiling is an invisible barrier that exists for women and minorities that limits their upward mobility in organizations. They can look up through the ceiling and see top management, but prevailing attitudes and stereotypes are invisible obstacles to their own advancement. This barrier also impedes the career progress of minorities. 2. In particular, Asian managers bump up against the bamboo ceiling, a combination of cultural and organizational barriers that impede Asians’ career progress. 3. To break through the glass ceiling into senior management roles, top executives suggest female and minority managers follow this advice: a. Gain profit-and-loss experience. For managers who want to be considered for top-level jobs, it is important to have experience in line position with profit-and-loss responsibilities. b. Be assertive and ask for what you want. Many Asian managers have found themselves stereotyped as “not top manager material” because they are too quiet and unassertive. Women in general are also uncomfortable asking for what they want, for fear of being perceived as too aggressive or too selfish. c. Be willing to take risks: Jump in as a problem solver when an organization is in crisis, an opportunity known as the glass cliff. d. Display confidence and credibility in your body language. Consultant Carol Kinsey Goman advises women who strive for leadership positions to be aware of nonverbal messages that reduce their authority, and urges them to avoid certain actions including excessive smiling and delicate handshakes. Discussion Question #10: What are the glass ceiling and bamboo ceiling, and why do you think they have proven to be such a barrier to women and minorities? Notes____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. Opt-Out Trend Many women choose to get off the fast track long before they hit the glass ceiling. In this opt-out trend, highly-educated, professional women are deciding that corporate success isn’t worth the price in terms of reduced family and personal time. Some are opting out to be stay-at-home moms, while others want to continue working, but just not in the kind of fast-paced, competitive, aggressive environment that exists in most corporations. Critics argue that this is just another way to blame women themselves for the dearth of female managers at higher levels. Discussion Question #11: Why do you think a large number of women are opting out of corporate management? Discuss whether this trend is likely to continue over the next ten years. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ C. The Female Advantage Some people think women might actually be better managers, partly because of a more collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s global and multicultural environment. As attitudes and values change with changing generations, the qualities women seem to possess may lead to a gradual role reversal in organizations. Women of all races and ethnic groups are outpacing men in earning bachelor’s and master’s degrees. Over all, women’s participation in both the labor force and civic affairs has steadily increased since the mid-1950s, while men’s participation has slowly but steadily declined. D. Enhancing Structures and Policies Many leading companies are changing structures and policies to facilitate and support a diverse workforce. Most large organizations have formal policies against racism and gender discrimination, as well as structured grievance procedures and complaint review processes. Companies are also developing policies to support the recruitment and career advancement of diverse employees. E. Increasing Awareness of Sexual Harassment Sexual harassment creates an unhealthy and unproductive work environment and is illegal. As a form of sexual discrimination, sexual harassment in the workplace is a violation of the 1964 Civil Rights Act. Sexual harassment in the classroom is a violation of the Education Amendment of 1972. The following categories describe various forms of sexual harassment. 1. Generalized. This form involves sexual remarks and actions not intended to lead to sexual activity. 2. Inappropriate/offensive. Though not sexually threatening, it causes discomfort in a coworker and limits the offended person’s freedom and ability to function at work. 3. Solicitation with promise of reward. This action treads a fine line as an attempt to “purchase” sex, with the potential for criminal prosecution. 4. Coercion with threat of punishment. The harasser coerces a coworker into sexual activity by using the threat of power to jeopardize the victim’s career. 5. Sexual crimes and misdemeanors. These acts, if reported, would be considered felony crimes and misdemeanors. CHAPTER 10 UNDERSTANDING INDIVIDUAL BEHAVIOR CHAPTER OUTLINE New Manager Self-Test: Are You Self-Confident? I. Understanding Yourself and Others A. The Value and Difficulty of Knowing Yourself B. Enhance Your Self-Awareness II. Attitudes A. High-Performance Work Attitudes B. Conflicts among Attitudes III. Perception A. Attributions IV. Personality and Behavior A. Personality Traits B. Attitudes and Behaviors Influenced by Personality V. Emotions A. Positive and Negative Emotions B. Emotional Intelligence New Manager Self-Test: Expressed Emotions VI. Managing Yourself A. Basic Principles for Self-Management B. A Step-by-Step Guide for Managing Your Time VII. Stress and Stress Management A. Challenge Stress and Threat Stress B. Type A and Type B Behavior C. Causes of Work Stress D. Innovative Responses to Stress Management ANNOTATED LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Explain why understanding yourself is essential for being a good manager, and describe two methods for enhancing self-awareness. Answer: The first requirement for being a good manager is understanding oneself. Managers’ characteristics and behavior can profoundly affect the workplace and influence employee motivation, morale, and job performance. When managers deeply understand themselves, they remain grounded and constant. People know what to expect from them. But self-awareness is not easy to achieve. Two valuable ways to enhance self-awareness are soliciting feedback and self-assessment, including introspection. A manager might consider himself or herself to be patient and understanding, but his or her employees may say that he or she is easily irritated and unsympathetic. Seeking feedback can help improve performance and job satisfaction for both managers and employees. Self-assessment uses self-inquiry and reflection to gain insights into oneself from the results of scores on self-assessment instruments. Self-assessment also means reflecting on one’s thoughts and feelings. 2. Define attitudes and discuss the importance of work-related attitudes. Answer: An attitude is an evaluation that predisposes a person to act in a certain way. The three components of attitudes are cognitions (thoughts), affect (feelings), and behavior. The cognitive component of an attitude includes the beliefs, opinions, and information the person has about the object of the attitude, such as knowledge of what a job entails and opinions about personal abilities. The affective component is the person’s emotions or feelings about the object of the attitude, such as enjoying or hating a job. The behavioral component of an attitude is the person’s intention to behave toward the object of the attitude in a certain way. The cognitive element is the conscious thought, “my job is interesting and challenging.” The affective element is the feeling, “I love this job.” A positive attitude toward one’s job is called job satisfaction. People experience this attitude when their work matches their needs and interests, when working conditions and rewards (such as pay) are satisfactory, and when the employees like their co-workers. Organizational commitment is loyalty to and engagement in one’s organization. An employee with a high degree of organizational commitment is likely to say “we” when talking about the organization. Such a person tries to contribute to the organization’s success and wishes to remain with the organization. 3. Describe the perception process and explain perceptual distortions. Answer: Perception is the cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information from the environment. Attitudes affect perceptions and vice versa. Because of individual differences in attitudes, personality, values, interests, and so forth, people often “see” the same thing in different ways. Perceptual distortions are errors in perceptual judgment that resulted from inaccuracies in any part of the perceptual process. One common perceptual error is stereotyping, the tendency to assign an individual to a group or broad category and then to attribute widely held generalizations about the group to the individual. Negative stereotypes prevent talented people from advancing in an organization and fully contribute their talents to the organization’s success. The halo effect occurs when the perceiver develops an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. 4. Define major personality traits and describe how personality can influence workplace attitudes and behaviors. Answer: In common usage, people think of personality in terms of traits, or relatively stable characteristics of a person. Extroversion is the degree to which a person is sociable, talkative, assertive, and comfortable with interpersonal relationships. Agreeableness is the degree to which a person is able to get along with others by being good-natured, cooperative, forgiving, understanding, and trusting. Conscientiousness, which is the degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement oriented. Emotional stability is the degree to which a person is calm, enthusiastic, and secure, rather than tense, nervous, depressed, moody, or insecure. Openness to experience is the degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas. An individual’s personality influences a wide variety of work-related attitudes and behaviors, some of which are locus of control, authoritarianism, Machiavellianism, and problem-solving styles. The locus of control defines whether a person places the primary responsibility within themselves or on outside forces. Authoritarianism is the belief that power and status differences should exist within the organization. Machiavellianism is characterized by the acquisition of power and the manipulation of other people for purely personal gain. Managers also need to understand that individuals differ in the way they go about gathering and evaluating information for problem solving and decision making. 5. Identify positive and negative emotions and describe how emotions affect behavior. Answer: Positive emotions are triggered when people are on track toward achieving their goals. Examples include happiness/joy, pride, love/affection, and relief. Negative emotions are triggered when people become frustrated in trying to achieve their goals. Examples include anger, fright/anxiety, guilt/shame, sadness, envy/jealousy, and disgust. Emotions affect behavior not only for the individual displaying the emotions, but also for those who interact with that individual, as a result of emotional contagion. People around an emotional individual tend to “catch” that person’s emotions and begin to feel and behave in a manner similar to that person. Negative emotions tend to diminish productivity as workers focus more on their emotions than on their work and begin to exhibit counterproductive behaviors. Managers can influence whether people experience primarily positive or negative emotions at work. As a result of emotional contagion, the emotional state of the manager influences the entire team or department. Effective managers pay attention to people’s emotions, because positive emotions are typically linked to higher productivity and greater effectiveness of employees. 6. Define the four components of emotional intelligence and explain why they are important for today’s managers. Answer: The four components of emotional intelligence include: • Self-awareness. The basis for all the other components. Being aware of what you are feeling. • Self-management. The ability to control disruptive or harmful emotions and balance one’s moods so that worry, anxiety, fear, or anger do not cloud thinking and get in the way of what needs to be done. • Social awareness. The ability to understand others and practice empathy, which means being able to put yourself in someone else’s shoes, to recognize what others are feeling without them needing to tell you. • Relationship management. The ability to connect to others, build positive relationships, respond to the emotions of others, and influence others. Studies show that there is a positive relationship between job performance and high emotional intelligence quotient (EQ) in a variety of jobs. 7. Outline a step-by-step system for managing yourself and your time. Answer: 1. Empty your head. Collect all the things you need or want to do. 2. Decide the next action. Do it, delegate it, or defer it. 3. Get organized. Schedule appointments and tasks. Set up calendars and action lists. 4. Perform a weekly review. Update calendars and action lists; process new items. 5. Now do it. Consider time and context, energy level, and task priority. 8. Explain the difference between challenge stress and threat stress. Answer: Challenge stress fires you up, whereas threat stress burns you out. Stress up to a certain point challenges you and increases your focus, alertness, efficiency, and productivity. After that point, however, things will go downhill quickly and stress compromises your job performance, your relationships, and even your health. The point at which things tip from challenge stress (good) to threat stress (bad) may vary with each individual. 9. Identify ways individuals and organizations can manage stress to improve employee health, satisfaction, and productivity. Answer: Stress is an individual’s physiological and emotional response to stimuli that place physical or psychological demands on the individual and create uncertainty and lack of personal control when important outcomes are at stake. These stimuli, called stressors, produce some combination of frustration (such as the inability to meet a deadline because of inadequate resources) and anxiety (such as the fear of being disciplined for not meeting deadlines). People’s responses to stressors vary according to their personalities, the resources available to help them cope, and the context in which the stress occurs. When the level of stress is low relative to a person’s coping resources, stress can be a positive force, stimulating desirable change and achievement. However, too much stress is associated with many negative consequences, including sleep disturbances, drug and alcohol abuse, headaches, ulcers, high blood pressure and heart disease. Too much stress is harmful to employees as well as to the organization. There are a variety of techniques to help individuals manage stress. Among the most basic strategies are those that help people stay healthy: exercising regularly, getting plenty of rest, and eating a healthful diet. In addition, most people cope with stress more effectively if they lead balanced lives and are part of a network of people who support and encourage them. Family relationships, friendships, and memberships in nonwork groups such as community or religious organizations are helpful for stress management, as well as for other benefits. Supporting employees can be as simple as encouraging people to take regular breaks and vacations. Creating broad work-life balance initiatives that may include flexible work options such as telecommuting and flexible hours, as well as benefits such as onsite daycare, fitness centers, and personal services. Organizations and employees should look for ways to reduce the stressors and increase employees’ coping skills. Organizations can provide training or clearer directions so that employees feel able to handle their responsibilities. They can make the work environment safer and more comfortable. Individuals also can act on their own initiative to develop their knowledge and skills. LECTURE OUTLINE NEW MANAGER SELF-TEST: ARE YOU SELF-CONFIDENT? Self-confidence is the foundation for many important behaviors of a new manager. It refers to general assurance in one’s ideas, judgment, and capabilities. Self-efficacy is one dimension of self-confidence, which is an individual’s strong belief that he or she can accomplish a specific task or outcome successfully. If a new manager lacks self-confidence, he or she is more likely to avoid difficult decisions and confrontations and may tend to overcontrol subordinates, which is called micromanaging. A lack of self-confidence also leads to less sharing of information and less time hiring and developing capable people. Self-confident managers, by contrast, can more easily delegate responsibility, take risks, give credit to others, confront problems, and assert themselves for the good of their teams. This exercise helps students identify their level of self-confidence. I. UNDERSTANDING YOURSELF AND OTHERS A. The Value and Difficulty of Knowing Yourself Self-awareness means being aware of the internal aspects of one’s nature, such as personality traits, beliefs, emotions, attitudes, and perceptions, and appreciating how your patterns affect other people. A primary characteristic of effective leaders is that they know who they are and what they stand for. When managers deeply understand themselves, they remain grounded and constant. Yet developing self-awareness is easier said than done. Many of us might be surprised to find out what others honestly think about us. B. Enhance Your Self-Awareness Exhibit 10.1 1. Seeking feedback to enhance self-awareness can improve performance and job satisfaction for both managers and employees. We all have illusions about ourselves, so we need help from others to assess accurately who we are. 2. Self-assessment is another highly valuable way to increase self-awareness. Self-assessment uses self-inquiry and reflection to gain insights into oneself from the results of scores on self-assessment instruments. It also means regularly reflecting on our thoughts and feelings, and taking the time to introspect. II. ATTITUDES An attitude is a positive or negative evaluation that predisposes a person to act in a certain way. An employee with an attitude problem might be hard to get along with, might gripe, and consistently resist new ideas. Understanding employee attitudes is important to managers because attitudes determine how people perceive the work environment, interact with others, and behave on the job. Effective managers strive to develop and reinforce positive attitudes among employees. Managers should recognize that negative attitudes can be the result of underlying problems in the workplace as well as a contributor to forthcoming problems. Discussion Question #3: In what ways might attitudes influence the behavior of employees who are faced with learning an entirely new set of computer-related skills in order to retain their jobs at a manufacturing facility? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ A. A. High-Performance Work Attitudes 1. Job Satisfaction Exhibit 10.2 a. Job satisfaction is a positive attitude to one’s job. People experience this attitude when their work matches their needs and interests and they like their co-workers. Job satisfaction also occurs when working conditions and rewards are satisfactory and when people have positive relationships with supervisors. b. Research shows that the link between job satisfaction and performance is small and is affected by other factors. Satisfaction varies according to the amount of control the employee has. Managers play an important role in whether employees have positive or negative attitudes about their jobs. 2. Organizational Commitment a. Organizational commitment is loyalty to and engagement in one’s organization. Most managers want to enjoy the benefits of loyal, committed employees, including low turnover and willingness to do more than the job’s basic requirements. b. Managers can foster organizational citizenship—work behavior that goes beyond job requirements and contributes to the organization’s success. An employee demonstrates organization citizenship by being helpful, doing extra work, and looking for ways to improve products and procedures. c. A study of more than 360,000 employees from 40 companies around the world indicates that companies with highly committed employees performed better. d. Trust in management decisions and integrity is one important component of organizational commitment. Managers can promote stronger organizational commitment by being honest and trustworthy in their business dealings, keeping employees informed, giving them a say in decisions, providing the necessary training and other resources that enable them to succeed, treating them fairly, and offering rewards that they value. B. Conflicts Among Attitudes 1. Sometimes a person may discover that his or her attitudes conflict with one another or are not reflected in behavior. This can create a state of cognitive dissonance, a psychological discomfort that occurs when individuals recognize inconsistencies in their own attitudes and behaviors. 2. The theory of cognitive dissonance states that people want to behave in accordance with their attitudes and will take corrective action to alleviate the dissonance and achieve balance. If corrective action, such as adjusting work hours, is not possible, individuals may develop negative attitudes toward their employer. Discussion Question #5: How might a manager apply an understanding of perception to communicate more effectively with subordinates? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ III. PERCEPTION Exhibit 10.3, Exhibit 10.4, Exhibit 10.5 Perception is the cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information from the environment. Because of individual differences in attitudes, personality, values, interests, and so forth, people often “see” the same thing in different ways. Perception can be viewed as a step-by-step process: first we observe information from the environment through our senses (sensory data); next our minds screen the data and select only the items we will process further; and third, we organize selected data into meaningful patterns for interpretation and response. Perceptual distortions are errors in perceptual judgment that arise from inaccuracies in any part of the perceptual process. Some types of errors are so common that managers should become familiar with them. 1. Stereotyping is the tendency to assign an individual to a group or broad category and then attribute generalizations about the group to the individual. 2. Halo effect refers to creating an overall impression of a person or situation based on one characteristic, either favorable or unfavorable. A. Attributions a. Attributions are judgments about what caused a person’s behavior—something about the person or something about the situation. An internal attribution says characteristics of the person led to the behavior. An external attribution says something about the situation caused the person’s behavior. b. Fundamental attribution error is the tendency to underestimate the influence of external factors on another’s behavior and to overestimate the influence of internal factors c. Self-serving bias is the tendency to overestimate the contribution of internal factors to one’s successes and the contribution of external factors to one’s failures IV. PERSONALITY AND BEHAVIOR An individual’s personality is the set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment. Understanding personality can help managers predict how a person might act in a particular situation. Managers who appreciate the ways their employees’ personalities differ have insight into what kinds of leadership behavior will be most influential. A. Personality Traits Exhibit 10.6 1. There are five general dimensions that describe personality, often called the Big Five personality factors. a. Extroversion refers to the degree to which a person is sociable, talkative, assertive, and comfortable with interpersonal relationships. b. Agreeableness refers to the degree to which a person is able to get along with others by being good-natured, cooperative, forgiving, understanding, and trusting. c. Conscientiousness refers to the degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement-oriented. d. Emotional stability refers to the degree to which a person is calm, enthusiastic, and secure, rather than tense, nervous, depressed, moody, or insecure. e. Openness to experience refers to the degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas. 2. These factors represent a continuum. A person may have a low, moderate, or high degree of each quality. Having a moderate-to-high degree of each personality factor is considered desirable for a wide range of employees, but is not a guarantee for success. 3. Many companies use personality testing to hire, evaluate, or promote employees despite the fact that there is little hard evidence that these personality tests are valid predictors of job or relationship success. The use of personality tests has however declined in recent years as more companies are relying on social media to assess candidates based on what they have to say or show about themselves. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ B. Attitudes and Behaviors Influenced by Personality Exhibit 10.7 1. Locus of control refers to whether individuals place the primary responsibility for success or failure within themselves (internally) or on outside forces (externally). a. Some believe that their actions can strongly influence what happens to them—they believe they are in control of their own fate. These individuals have a high internal locus of control. Many top leaders of e-commerce and high-tech organizations have a high internal locus of control. • People with an internal locus of control are easier to motivate and better able to handle complex information. They are better at problem solving and are more achievement oriented, but are also more independent and therefore more difficult to manage. b. Others believe that events occur because of chance, luck, or outside people or events. They see themselves as the pawns of their fate. These individuals have a high external locus of control. • People with an external locus of control are harder to motivate, less involved in their jobs, and more likely to blame others, but are more compliant and conforming and thus easier to manage. Discussion Question #8: How might understanding whether an employee has an internal or an external locus of control help a manager better communicate with, motivate, and lead the employee? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. Authoritarianism is the belief that power and status differences should exist within the organization. If a manager and his or her employees differ in their degree of authoritarianism, the manager may have difficulty managing effectively. The trend toward empowerment and shifts in expectations among younger employees for more equitable relationships has caused a decline in authoritarianism. 3. Machiavellianism is the tendency to direct much of one’s behavior toward the acquisition of power and the manipulation of others for personal gain. Research shows that high Machs are predisposed to being pragmatic, capable of lying to achieve personal goals, more likely to win in win-lose situations, and more likely to persuade than to be persuaded. a. In loosely structured situations, high Machs actively take control, while low Machs accept the directions given by others. Low Machs thrive in highly structured situations, while high Machs perform in a detached, disinterested way. 4. Problem-Solving Styles and the Myers-Briggs Type Indicator Exhibit 10.8 a. Individuals differ in the way they go about gathering and evaluating information for problem solving and decision making. Psychologist Carl Jung believed that people gather information either by sensation or intuition, but not by both simultaneously. Sensation-type people would rather work with known facts and data; intuitive-type people would prefer to look for possibilities and use abstract concepts for problem solving. b. People evaluate information by thinking or feeling. Thinking-type people base their evaluations on impersonal analysis using reason and logic rather than emotion or values. Feeling-type individuals base their evaluations on personal feelings, such as harmony, and make decisions that result in approval from others. c. According to Jung, only one of the four functions—sensation, intuition, thinking, or feeling—is dominant; however, the dominant feature is backed up by one of the others. Two additional sets of paired opposites not related to problem solving are introversion–extroversion and judging–perceiving. d. The Myers-Briggs Type Indicator (MBTI) is a personality test that measures a person’s preference for introversion vs. extroversion, sensation vs. intuition, thinking vs. feeling, and judging vs. perceiving. The various combinations of these four preferences result in 16 unique personality types, each of which can have both positive and negative consequences for behavior. The two preferences most strongly associated with effective management are thinking and judging. NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ V. EMOTIONS A. Positive and Negative Emotions Exhibit 10.9 1. An emotion can be thought of as a mental state that arises spontaneously within a person based on interaction with the environment rather than through a conscious effort and is often accompanied by physiological changes or sensations. a. Positive emotions are triggered when people are on track toward achieving their goals. b. Negative emotions are triggered when people become frustrated in trying to achieve their goals. 2. Managers can influence whether people experience primarily positive or negative emotions at work. As a result of emotional contagion, the emotional state of the manager influences the entire team or department. Effective managers pay attention to people’s emotions, because positive emotions are typically linked to higher productivity and greater effectiveness of employees. B. Emotional Intelligence 1. Emotional Intelligence (EQ) includes five basic components. a. Self-awareness means being aware of what you are feeling. It is the basis for all the other components. b. Self-management refers to the ability to control disruptive or harmful emotions and balance one’s moods so that worry, anxiety, fear, or anger do not cloud thinking. c. Social awareness is the ability to understand others and practice empathy, putting yourself in someone else’s shoes, recognizing the feelings of others without being told. d. Relationship awareness is the ability to connect to others, build positive relationships, respond to the emotions of others, and influence others. 2. Studies have found a positive relationship between job performance and high emotional intelligence quotient (EQ) in a variety of jobs. At times of great change or crisis, managers rely on a high EQ level to help employees cope with anxiety and stress. 3. Managers with low emotional intelligence can undermine employee morale and harm the organization. Growing concerns over workplace bullying have prompted enlightened companies to take action that helps managers develop greater emotional intelligence, such as by honing their self-awareness. NEW MANAGER SELF-TEST: EXPRESSED EMOTIONS Understanding yourself and others is a major part of a new manager’s job. The important thing as a manager is to know and guide yourself, to understand the emotional state of others, and to guide your relationships in a positive direction. This exercise helps students learn about their insights into themselves and others. Discussion Question #7: Which of the four components of emotional intelligence do you consider most important to an effective manager in today’s world? Why? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ VI. MANAGING YOURSELF Self-management is the ability to engage in self-regulating thoughts and behavior to accomplish all your tasks and handle difficult or challenging situations. Yet all of us have patterns of habit and behavior that make it hard to manage ourselves toward more efficient behavior. A. Basic Principles for Self-Management Three basic principles that define how to manage your big and small commitments effectively so that you can get them accomplished are: 1. Clarity of mind. If you’re carrying too much around in your head, your mind can’t be clear. If so, you can’t focus. If you can’t focus, you can’t get anything done. 2. Clarity of objectives. You have to be clear about exactly what you need to do and decide the steps to take toward accomplishing it. 3. An organized system. Once you’ve decided the actions you need to take, you need to keep reminders in a well-organized system. By building a self-management approach based on these three principles, you can get unstuck and make measurable progress toward achieving all the things you need to do. B. A Step-by-Step Guide for Managing Your Time Exhibit 10.10 One self-management system is based on five steps: 1. Empty your head. The first step is to write down all the activities that demand your attention on scraps of paper, organize them into various manageable “buckets” using available tools, and add new projects or commitments as and when they occur. 2. Decide the next action. For each item in your buckets, decide the real, specific, physical action that you need to take action, and then do it, delegate it, or defer it. 3. Get organized. Organize all the deferred items. At this stage, schedule any appointments you identified as “next actions” and record these on whatever calendar you check daily. 4. Perform a weekly review. Once a week, review your complete Next Actions list and your calendar for the coming week. Scan the entire list of outstanding projects and actions so that you can make efficient choices about using your time. 5. Now do it. Once you have collected, processed, organized, and reviewed your current commitments, you will have a better sense of what needs to be done, enabling you to make better choices about how to use your time. This approach to self-management can help you get a handle of all the various things you have to do and approach them in a systematic way with a clear mind. Discussion Question #09: How do you think a system for self-management such as the five-step system described in this chapter could benefit you as a student? What parts of the system seem particularly useful to you? Explain NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ VII. STRESS AND STRESS MANAGEMENT Exhibit 10.11 Stress is a physiological and emotional response to stimuli that place physical or psychological demands on an individual and create uncertainty and lack of control when important outcomes are at stake. These stimuli, called stressors, produce some combination of frustration and anxiety. A. Challenge Stress and Threat Stress Challenge stress fires you up, whereas threat stress burns you out. Stress up to a certain point challenges you and increases your focus, alertness, efficiency, and productivity. After that point, however, things will go downhill quickly and stress compromises your job performance, your relationships, and even your health. The point at which things tip from challenge stress (good) to threat stress (bad) may vary with each individual. People’s responses to stressors vary according to their personality, the resources available to help them cope, and the context in which the stress occurs. When the level of stress is low, stress can be a positive force, stimulating desirable change and achievement. However, too much stress is associated with many negative consequences, including sleep disturbances, drug and alcohol abuse, headaches, ulcers, high blood pressure, and heart disease. People who are experiencing the ill effects of stress may withdraw from interactions with their coworkers, take excess time off for illnesses, and have more health problems. B. Type A and Type B Behavior 1. Researchers have categorized people as having one of two behavior patterns. a. Type A Behavior is a behavior pattern characterized by extreme competitiveness, impatience, aggressiveness, and devotion to work. b. Type B Behavior is a behavior pattern that lacks Type A characteristics and includes a more balanced, relaxed lifestyle. 2. Type A individuals can be powerful forces for innovation and leadership within their organizations. However, many Type A personalities cause stress-related problems for themselves and sometimes for those around them. Most Type A individuals are high-energy people. Type B individuals experience less conflict with other people and a more balanced lifestyle. C. Causes of Work Stress 1. Work-related stress is on the rise worldwide. Managers can better cope with their own stress and establish ways for the organization to help employees cope if they define the conditions that tend to produce work stress. One way to identify work stressors is to place them in four categories. a. Task demands are stressors arising from the tasks required of a person holding a particular job such as decisions made under time pressure, those that must be made with incomplete information, and those that have serious consequences. Task demands also sometimes cause stress because of role ambiguity, which means that people are unclear about what task behaviors are expected of them. b. Interpersonal demands are stressors associated with relationships in the organization. Interpersonal relationships can be a source of stress when the group puts pressure on an individual or when conflicts arise between individuals. Role conflict occurs when an individual perceives incompatible demands from others. D. Innovative Responses to Stress Management Exhibit 10.12 Organizations that want to challenge their employees and stay competitive in a fast-changing environment will never be stress-free. Because many consequences of stress are negative, managers need to participate in stress management for themselves and for their employees. But healthy workplaces promote the physical and emotional well-being of their employees. 1. What You Can Do to Combat Stress a. Seek and destroy key sources of stress. Being well organized, planning ahead, and using various time management techniques are highly effective ways to manage and prevent stress. b. Find meaning and support. If you feel you have lot of support, you’re less susceptible to the negative effects of bad stress. c. Meditate and manage your energy. Meditation can be an important part of an overall healthy lifestyle. d. Find work-life balance. People who live balanced lives typically accomplish more than those who push themselves. 2. What Managers and Organizations Can Do a. Create a psychologically healthy workplace. The number one way to lessen employee stress is to create a healthy corporate culture that makes people feel valued. This includes making sure that people don’t have unreasonable workloads, providing opportunities for growth and advancement, and offering suitable salaries and benefits. b. Provide wellness programs and training. Wellness programs that offer access to nutrition counseling and exercise facilities can be highly beneficial in helping people cope with stressful jobs. Training programs and conferences can help people identify stressors and teach them coping mechanisms. c. Train managers in stress intervention. Training managers to recognize warning signs of stress overload is critical. Manager intervention is a growing trend in enlightened companies. d. Make sure people get to have some fun at work. Particularly for jobs that have a high degree of task-related stress, allowing people to blow off stream by having fun can make all the difference in the stress level. Work-life practices also communicate that managers and the organization care about employees as human beings. Managers’ attitudes make a tremendous difference in whether employees are stressed out and unhappy or relaxed, energetic, and productive. Discussion Question #10: Why do you think workplace stress is skyrocketing? Do you think it is a trend that will continue? Explain the reasons for your answer. Do you think it is the responsibility of managers and organizations to help employees manage stress? Why or why not? NOTES____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Instructor Manual for Understanding Management Dorothy Marcic, Richard L. Daft 9781285421230, 9781305313347