Hewlett-Packard The HP Way Shunned rigid hierarchy Big Bonuses First All-company profit sharing When...

Hewlett-Packard

The HP Way Shunned rigid hierarchy Big Bonuses First All-company profit sharing When HP went public (shares all employees) HP Trusts employees Not Coddling (fire unethical employees) Current situation

http://www.hp.com/

1. Job security

2. Careful hiring

3. Power to the people

4. Generous pay for performance

5. Lots of training

6. Less emphasis on status

7. Trust building

71% of U.S. workers consider themselves ‘disengaged’ clock-watchers who can’t wait to go home.

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McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Pfeffer’s Seven People-Centered Practices

What was your best job? Why was it your best job?

1-2 Figure 1-1

The 4-P Cycle of Continuous Improvement

People(Skilled, motivated

people who can handle change. Less stress.)

Products(Satisfied customers

because of better quality goods/services.

Job creation.)

Processes(Faster, more flexible,

leaner, and ethical organizationalprocesses. Organizational learning.)

Productivity(Less wasteful, more

efficient use of allresources.)


1. Clarifies goals and objectives for everyone involved.

2. Encourages participation, upward communication, and suggestions.

3. Plans and organizes for an orderly workflow

4. Has technical and administrative expertise to answer organization-related questions.

5. Facilitates work through team building, training, coaching, and support.

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Skills & Best Practices: The Effective Manager’s Skill Profile


6. Provides feedback honestly and constructively.

7. Keeps things moving by relying on schedules, deadlines, and helpful reminders.

8. Controls details without being overbearing.

9. Applies reasonable pressure for goal accomplishment.

10. Empowers and delegates key duties to others while maintaining goal clarity and commitment.

11. Recognizes good performance with rewards and positive reinforcement.

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Skills & Best Practices: The Effective Manager’s Skill Profile (Cont.)


How has the managers job changed?

1-5 Table 1-1

Evolution of 21st Century Managers

Multicultural, multilingual

Monocultural, monolingual

Cultural orientation

Skills, resultsTime, effort, rankCompensation criteria

Continuous life-long learning, generalist with multiple specialties

Periodic learning, narrow specialist

Learning and knowledge

Facilitator, team member, teacher, advocate, sponsor, coach, partner

Order giver, privileged elite, manipulator, controller

Primary role

Future ManagersPast Managers


1-6 Table 1-1

Evolution of 21st Century Managers (Cont.)

Broad-based input for joint decisions

Limited input for individual decisions

Decision-making style

MultidirectionalVerticalPrimary communication-pattern

Primary resourcePotential problemView of people

Knowledge (technical and interpersonal)

Formal authorityPrimary source of influence



1-7 Table 1-1

Evolution of 21st Century Managers (Cont.)

FacilitateResistApproach to change

Share and broaden access

Hoard and restrict access

Handling of power and key information

Cooperative (win-win)Competitive (win-lose)

Nature of interpersonal relationships

ForethoughtAfterthoughtEthical considerations



Theory X Most people dislike work Most people must be

coerced and threatened before they will work

Most people actually prefer to be directed

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McGregor’s Theory X and Theory Y

Theory Y Work is a natural activity People are capable of self-

direction and self-control Rewards cause people to

be more committed to organizational goals

The typical employee can learn to accept and seek responsibility

People are imaginative, creative and have ingenuity


Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction

Principles of TQM1. Do it right the first time to eliminate costly rework.

2. Listen to and learn from customers and employees.

3. Make continuous improvement an everyday matter.

4. Build teamwork, trust and mutual respect.

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What is TQM?


85-15 rule System versus People The power of stories

It depends (contingency approach)

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The Age of Human and Social Capital

Human Capital The productive potential of

one’s knowledge and actions

Social capital The productive potential of

strong, trusting, and cooperative relationships


1-11 Figure 1-2

The Strategic Importance and Dimensionsof Human and Social Capital

StrategicAssumption

Individual Human Capital

Social CapitalOrganizational Learning


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McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Skills & Best Practices: How to Build Human and Social Capital

Building Human Capital

“The brokerage…spends $75,000 per worker on training, and just built AGEU, a 20,000 square foot education center for new financial consultants”

A.G. Edwards

St. Louis

16,482 employees

“Education is foremost at this construction company, where all employees—called ‘partners’—are allowed 100% reimbursement of tuition, fees, and books at any state-supported college.”

TDIndustries

Dallas

1,393 employees

Program or activityCompany


http://www.agedwards.com/

http://www.tdindustries.com/

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Skills & Best Practices: How to Build Human and Social Capital (Cont.)

Building Social Capital

“The 153-year-old travel and financial services firm…recently reinstated 12-week sabbaticals [so] staff can take time off to work at nonprofits.”

American Express

New York

43,477 employees

“The software giant…matches charity donations up to $12,000.”

Microsoft

Redmond, WA

36,665 employees



http://grouper.com/GlobalMedia/MediaDetails.aspx?id=935529

http://bbspot.com/News/2000/4/MS_Buys_Evil.html

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Skills & Best Practices: How to Build Human and Social Capital (Cont.)

Building Social Capital

“The maker of rugged footwear gives employees up to 40 hours a year of paid time off for community service.”

Timberland

Stratham, NH

2,116 employees



Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities

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Positive Organizational Behavior


• Negative employees can scare off customers—for good.

• Increasing positive emotions could lengthen life span by 10 years.

• Praise is a powerful leadership strategy.

• 65% of people said they received no recognition for good work.

• The number 1 reason most Americans leave their jobs is that they don’t feel appreciated.

L1-1


People Need Praise

Good Job!

McGraw-Hill-Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

• Increase their individual productivity.

• Increase engagement among their colleagues.

• Are more likely to stay with their current organization.

• Receive higher loyalty and satisfaction scores from customers.

• Have better safety records and fewer accidents on the job.

L1-2


Those Who Give and Get Praise:


Discuss the layers and functions of organizational culture.

Describe the three general types of organizational culture and their associated normative beliefs.

Summarize the methods used by organizations to embed their cultures.

Describe the three phases in Feldman’s model of organizational socialization.

Discuss the various socialization tactics used to socialize employees.

Explain the four types of developmental networks derived from a developmental network model of mentoring

Organizational Culture,Socialization, and Mentoring

Learning Objectives

Chapter Two

Costco

Markups only 14% Hourly employees $40,000 after 4 years Generous return policy

“Costco continues to be a company that is better at serving the club member and employee than the shareholder”

Axioms 1. Obey the law 2. Take care of your customers 3. Take care of your employees 4. Practice the intelligent loss of sales (SKUs

Organizational culture shared values and beliefs that underlie a company’s identity.

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Organizational Culture


A Conceptual Framework for Understanding Organizational Culture

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

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Layers of Organizational Culture


Source: Adapted from E H Schein, Organizational Culture and Leadership, 2nd ed (San Francisco: Jossey-Bass, 1992), p 17.

Observable

Artifacts

Espoused

Values

Basic Underlying

Assumptions


2-4 Figure 2-2

Four Functions of Organizational Culture


Organizationalculture

Sense-makingdevice

Organizationalidentity

Social systemstability

Collectivecommitment


2-5 Table 2-1

Types of Organizational Culture


High priority on constructive interpersonal relationships, and focus on work group satisfaction

AffiliativeConstructive

Participative, employee-centered, and supportive

Humanistic-encouraging

Constructive

Value self-development and creativity

Self-actualizing

Constructive

Goal and achievement oriented

AchievementConstructive

Organizational Characteristics

Normative Beliefs

General Types of Culture


2-6 Table 2-1

Types of Organizational Culture (Cont.)


Negative reward system and avoid accountability

AvoidancePassive-defensive

Nonparticipative, centralized decision-making, and employees do what they’re told

DependentPassive-defensive

Conservative, bureaucratic and people follow the rules

ConventionalPassive-defensive

Avoid conflict, strive to be liked by others and approval oriented

ApprovalPassive-defensive


Normative Beliefs



2-7 Table 2-1

Types of Organizational Culture (Cont.)


Perfectionistic, persistent and hard-working

PerfectionisticAggressive-defensive

Winning is valued and a win-lose approach is used

CompetitiveAggressive-defensive

Nonparticipative, take charge of subordinates and responsive to superiors

PowerAggressive-defensive

Confrontation and negativism awarded

OppositionalAggressive-defensive


Normative Beliefs



What researchers have learned

Constructive culture is positively related with employee behavior and attitude (DUHHHH)

People felt more comfortable in companies whose culture matched their personal value systems (Double Duhhhh)

No correlation between company culture and financial performance (Whatttt?)

Flexible cultures more likely to yield higher financial performance (Interesting)

7 of 10 mergers and acquisitions fail to meet their financial promise (can culture be an issue? HP/Compaq)

1. Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization

2. The design of physical space, work environments, and buildings

3. Slogans, language, acronyms, and sayings4. Deliberate role modeling, training programs,

teaching and coaching by managers and supervisors

5. Explicit rewards, status symbols (e.g., titles),and promotion criteria

6. Stories, legends, and myths about key people and events

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Embedding Organizational Culture


7. The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control

8. Leader reactions to critical incidents and organizational crises

9. The workflow and organizational structure10. Organizational systems and procedures11. Organizational goals and the associated criteria

used for recruitment, selection, development, promotion, layoffs, and retirement of people

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Embedding Organizational Culture (Cont.)


HR is the keeper of:• Selection• Socialization• Training and Development• Evaluation Systems

L2-1


HR EmbedsOrganizational Culture

Culture

Culture


HR Benefits when:• The founder’s personality is charismatic, vibrant,

honest and ethical• Leonard Gentine of Sargento Foods: after his death,

the family keeps his spirit alive through his image and presenting a Founder’s Ring to employees best displaying Sargento culture

• Charles Schwab believed that employees should follow the company’s values or be fired: his own son was fired after giving investment advice: a no-no in Schwab culture

L2-2


Embedding a Culture Based on aFounder’s Personality


L2-3

Embedding a Culture Based on aFounder’s Personality


HR is challenged when: The founder is involved in scandal or engages in

questionable public activity Henry Ford stepped down from the company and

got involved in politics and anti-Semitism Martha Stewart carefully crafted her brand based

on her image as a wholesome homemaker only to be convicted of securities fraud


L2-4

HR and Employee Ownership


HR builds employee ownership of culture: Peg employee recognition to the corporate

culture. Connect culture to the bottom line. Emphasize the company’s history. Communicate constantly with all levels of

employees.

Our Cultur

e


L2-5

Application of Primary EmbeddingMechanisms at Enron


Embedding Mechanism: What leaders pay attention to, measure and control on a regular basis

Application at Enron: Wanted employees to focus on the bottom

line A former employee said Jeffrey Skilling was a

leader driven by money “Skilling would say all that matters is money.

You buy loyalty with money”


L2-6

Application of Primary EmbeddingMechanisms at Enron (Cont.)


Embedding Mechanism: How leaders react to critical incidents and organizational crises

Application at Enron: Defended a culture that valued profitability, at

the expense of everything else Shifted the blame and pointed fingers Fired those it could not lay blame on Covered up any evidence of problems or

wrongdoing


2-10 Figure 2-3

A Model of Organizational Socialization


Phases Perceptual and Social Processes

1. Anticipatory Socialization

Learning that occurs prior to joining the organization

• Anticipating realities about the organization and the new job• Anticipating organization’s needs for one’s skills and abilities• Anticipating organization’s sensitivity to one’s needs and values


2-11 Figure 2-3

A Model of Organizational Socialization (Cont.)


Phases Perception and Social Processes

2. Encounter

Values, skills and attitudes start to shift as new recruit discovers what theorganization is trulylike

• Managing lifestyle- versus-work conflicts• Managing intergroup role conflicts • Seeking role definition and clarity• Becoming familiar with task and group dynamics


2-12 Figure 2-3

A Model of Organizational Socialization (Cont.)


Phases Perception and Social Processes

3. Change and acquisition

Recruit masters skills and roles and adjusts to workgroup’s values and norms

• Competing role demands are resolved• Critical tasks are mastered • Group norms and values are internalized


Examples of Socialization

Good Bad

2-14 Table 2-2

Socialization Tactics


Sequential: fixed progression of steps that culminate in the new role; Random: ambiguous or dynamic progression

Sequential vs. Random

Formal: Segregating newcomer from regular organization members; Informal: not distinguishing between newcomer and experienced members

Formal vs. Informal

Collective: consists of grouping newcomers and exposing them to a common set of experiences; Individual: exposing each individually to a set of unique experiences

Collective vs. Individual

DescriptionTactic


2-15 Table 2-2

Socialization Tactics (Cont.)


Investiture: affirmation of newcomer’s incoming global and specific role identities and attributes; Divestiture: denial and stripping away of the newcomer’s existing sense of self to rebuild in the organization’s image

Investiture vs. Divestiture

Serial: newcomer is socialized by an experienced member; Disjunctive: does not use a role model

Serial vs. Disjunctive

Fixed: provides a timetable for the assumption of the role; Variable: does not provide timetable

Fixed vs. Variable

DescriptionTactic


Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person

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Mentoring and Functions of Mentoring

Functions of Mentoring• Career Functions

- Sponsorship- Exposure-and-visibility- Coaching- Protection- Challenging assignments

• Psychosocial Functions- Role modeling- Acceptance-and-confirmation- Counseling- Friendship


1. Become the perfect protégé

2. Engage in 360-degree networking

3. Commit to assessing, building, and adjusting the mentor network

4. Develop diverse, synergistic connections

5. Realize that change is inevitable and that all good things come to an end

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Skills & Best Practices: Building an Effective Mentoring Network


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