(BQ) Part 1 book Management has contents: Introducing management; management learning past to present; ethics and social responsibility; environment, innovation, and sustainability; global management and cultural diversity; entrepreneurship and new ventures,...and other contents.
Find more at http://www.downloadslide.com Management Twelfth Edition Learn | Succeed Schermerhorn Find more at http://www.downloadslide.com Find more at http://www.downloadslide.com (Courtney Keating/iStockphoto) Find more at http://www.downloadslide.com Find more at http://www.downloadslide.com MANAGEMENT TWELFTH EDITION JOHN R SCHERMERHORN, JR Find more at http://www.downloadslide.com VICE PRESIDENT & EXECUTIVE PUBLISHER George Hoffman EXECUTIVE EDITOR Lisé Johnson SENIOR PRODUCT DESIGNER Allison Morris EDITORIAL OPERATIONS MANAGER Yana Mermel CONTENT EDITOR Jennifer Manias ASSOCIATE DIRECTOR OF MARKETING Amy Scholz MARKETING MANAGER Kelly Simmons SENIOR CONTENT MANAGER Dorothy Sinclair SENIOR PRODUCTION EDITOR Erin Bascom DESIGN DIRECTOR Harry Nolan PHOTO DEPARTMENT MANAGER Hilary Newman EDITORIAL ASSISTANT Melissa Solarz SENIOR MARKETING ASSISTANT Ashley Tomeck SENIOR MEDIA SPECIALIST Elena Santa Maria PRODUCTION MANAGEMENT SERVICES Ingrao Associates COVER DESIGNER Wendy Lai PHOTO RESEARCHER Susan McLaughlin INTERIOR DESIGN Tom Nery COVER PHOTO ©Simon Ingate/iStockphoto REPEATED DESIGN ELEMENT PHOTO CREDITS (opener blue background) Viktoriya Sukhanova/iStockphoto; (opener GPS navigation screen) pagadesign/iStockphoto; (opener keyboard) tioloco/iStockphoto; (Facts for Analysis) George Diebold/Purestock/SuperStock; (Learning Check Summary, Self-Test, Recommended Reading and Management in Popular Culture) vanias/iStockphoto; (Team Exercise) RelaxFoto.de/iStockphoto; (Career Situations) sweetym/iStockphoto; (Case Study) 123render/iStockphoto This book was set in 11/14 Kepler by Aptara, Inc and printed and bound by Courier/Kendallville The cover was printed by Courier/Kendallville This book is printed on acid free paper ` Founded in 1807, John Wiley & Sons, Inc has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support For more information, please visit ourwebsite: www.wiley.com/go/citizenship Copyright © 2013, 2011, 2010, 2008 John Wiley & Sons, Inc All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year These copies are licensed and may not be sold or transferred to a third party Upon completion of the review period, please return the evaluation copy to Wiley Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy Outside of the United States, please contact your local representative Library of Congress Cataloging in Publication Data: Schermerhorn, John R Management / John R Schermerhorn — 12th ed p cm ISBN 978-1-118-11392-9 (cloth) Management I Title HD31.S3325 2013 658—dc23 978-1-118-11392-9 (Main Book ISBN) 978-1-118-39742-8 (Binder-Ready Version ISBN) Printed in the United States of America 10 Find more at http://www.downloadslide.com To my sons, John Christian and Charles Porter While you played I wrote But always, I was listening and loving you Time has its ways, doesn’t it? Not enough, not enough, I often say Mom loves us, cats and rainy days Nana and Poppy loved us too 1984 1996 2007 It’s later now Don’t worry Time means love shared, by you and me Hurry home when you can Come laughing, sons Tell us your wonderful stories Bookstores, museums, stories, paintings And dreams We travel, we laugh, joined in life 1986 1999 2009 Think of all the fun we have Here, there, everywhere, doing things together Songs riding winds Mimi, Uncle George, Uncle Nelson Whispers and choirs Silence speaks While you work, I’m starting to play again Still listening, and loving you 1989 2002 2011 Home, now and forever, will always be wherever I can be with you On the mountain, by Irish lakes, find beauty and peace Fairies dance there When I was young I never knew you would make dreams come true 1992 2004 2013 Find more at http://www.downloadslide.com About the Author Ohio University named Dr Schermerhorn a University Professor, the university’s highest campus-wide honor for exellence in undergraduate teaching vi Dr John R Schermerhorn, Jr is the Charles G O’Bleness Professor of Management Emeritus in the College of Business at Ohio University, where he teaches graduate and undergraduate courses in management Dr Schermerhorn earned a Ph.D in organizational behavior from Northwestern University, an MBA (with distinction) in management and international business from New York University, and a BS in business administration from the State University of New York at Buffalo He previously taught at Tulane University, the University of Vermont, and Southern Illinois University at Carbondale, where he also served as head of the Department of Management and associate dean of the College of Business Administration International experience adds a unique global dimension to Dr Schermerhorn’s teaching and writing He holds an honorary doctorate from the University of Pécs in Hungary He was a visiting professor of management at the Chinese University of Hong Kong, on-site coordinator of the Ohio University MBA and Executive MBA programs in Malaysia, and Kohei Miura visiting professor at Chubu University in Japan He has served as adjunct professor at the National University of Ireland at Galway and advisor to the Lao-American College in Vientiane, Laos He presently teaches an MBA course at Università Politecnica Delle Marche in Ancona, Italy, and PhD seminars in the Knowledge and Innovation Management doctoral program at Bangkok University, Thailand At Ohio University he has twice been Director of the Center for Southeast Asian Studies A member of the Academy of Management, Dr Schermerhorn was chairperson of the Management Education and Development Division Management educators and students alike know him as author of Exploring Management 3e (Wiley, 2012), Management 12e (Wiley, 2013), and senior co-author of Organizational Behavior 12e (Wiley, 2011) Dr Schermerhorn has also published numerous articles, including ones in the Academy of Management Journal, Academy of Management Review, Academy of Management Executive, Organizational Dynamics, Asia-Pacific Journal of Management, the Journal of Management Development, and the Journal of Management Education Dr Schermerhorn is a popular guest speaker at colleges and universities He is available for student lectures and classroom visits, as well as for faculty workshops on scholarly manuscript development, textbook writing, high engagement teaching, and instructional and curriculum innovations Find more at http://www.downloadslide.com Preface From the beautiful cover of this book to the realities of organizations today, great accomplishments are much like inspired works of art Whether one is talking about arranging objects or bringing together people and other resources in organizational systems, it is a balancing act But the results are spectacular when goals and talent combine to create a lasting and positive impact Just as artists find inspiration in all the senses that bring our world to life, managers find inspiration in daily experiences, from the insights of management scholars, through relationships with other people, and among the goals that guide organizations in an ever more demanding society And like artists, managers must master many challenges as they strive to create the future from the resources of the present While a beautiful formation of feathers, wood, and stones in the cover art shows balance and harmony in a visual masterpiece, a well-managed workplace can build, mix, and integrate all the beauties of human talent to achieve great things This capacity for positive impact is the goal bound into the pages of Management 12e It is an opportunity to gain knowledge, find inspiration, and learn practices that can help build the organizations we need to forge a better world A well-managed workplace can build, mix, and integrate all the beauties of human talent to achieve great things Management 12e Philosophy Today’s students are tomorrow’s leaders and managers They are our hope for the future When well prepared, they can be major contributors during this time of social transformation But the workplace is rapidly changing, and so too must our teaching and learning environments change from the comforts and successes of days gone by New values and management approaches are appearing; organizations are changing forms and practices; jobs are being redefined and relocated; the age of information is a major force in our lives; and the intricacies of globalization are presenting major organizational and economic challenges Management 12e is designed for this new world of work It is crafted to help students not just explore the essentials of the management discipline, but also to discover their true potential and accept personal responsibilities for developing useful career skills The content, pedagogy, and features of this edition were carefully blended to support management educators who want their courses to: Management 12e is designed to help students discover their true potential and accept personal responsibilities for developing career skills • enhance our students’ career readiness; • make our students more attractive as intern and job candidates; vii Find more at http://www.downloadslide.com viii PREFACE • improve our students’ confidence in critical thinking; • raise our students’ awareness of timely social and organizational issues; • inspire our students to embrace life-long learning for career success Management 12e Pedagogy Our goal as educators should be to make good content choices that set the best possible foundations for lifelong learning The pedagogical foundations of Management 12e are based on four constructive balances that are essential to higher education for business and management • The balance of research insights with formative education As educators we must be willing to make choices when bringing the theories and concepts of our discipline to the attention of the introductory student We cannot everything in one course The goal should be to make good content choices that set the best possible foundations for lifelong learning • The balance of management theory with management practice As educators we must understand the compelling needs of students to learn and appreciate the applications of the material they are reading and thinking about We must continually bring to their attention good, interesting, and recognizable examples • The balance of present understandings with future possibilities As educators we must continually search for the directions in which the real world of management is heading We must select and present materials that can both point students in the right directions and help them develop the confidence and selfrespect needed to best pursue them We are role models we must be willing to take stands on issues such as managerial ethics and social responsibility • The balance of what “can” be done with what is, purely and simply, the “right” thing to As educators we are role models; we set the examples We must be willing to take stands on issues such as managerial ethics and social responsibility We must be careful not to let the concept of “contingency” betray the need for positive “action” and “accountability” in managerial practice Today, more than ever before, our students have pressing needs for direction as well as suggestion They have needs for application as well as information They have needs for integration as well as presentation And they have needs for confidence built upon solid understanding Our instructional approaches and materials must deliver on all of these dimensions and more My goal is to put into your hands and into those of your students a learning resource that can help meet these needs Management 12e and its supporting online resources are my contributions to the future careers of your students and mine Management 12e Highlights Management 12e is written for students seeking career success in today’s challenging and ever-changing work environment It introduces the essentials of management as they apply to organizations and careers in a complex global Find more at http://www.downloadslide.com 306 O RGANIZATION CULTURE A N D CHANGE We use the word change so much that the tendency may be to make culture changes like these seem easy, almost a matter of routine But that’s not always the case.38 Former British Airways CEO Sir Rod Eddington once said that “Altering an airline’s culture is like trying to perform an engine change in flight.”39 Models of Change Leadership A change leader takes initiative in trying to change the behavior of another person or social system ETHICS ON THE LINE A change leader is someone who takes initiative to change the existing pattern of behavior of another person or social system These are managers who act as change agents and make things happen, even when inertia has made systems and people reluctant to embrace new ways of doing things Managers who are strong change leaders are alert to cultures, situations, and people needing change, open to good ideas and opportunities, and ready and able to support the implementation of new ideas in actual practice In theory, every manager should act as a change leader But the reality is that people show major tendencies toward staying with the status quo—accepting things as they are and not wanting to change Figure 12.3 contrasts a true “change leader” with a “status quo manager.” Whereas the status quo manager is backward-looking, reactive, and comfortable with habit, the change leader is forward-looking, proactive, supportive of new ideas, and comfortable with criticism At Xerox, for example, CEO Ursula Burns talks about the “Xerox family” when referring to her firm’s corporate > SOME MANAGERS USE DECEPTION TO AVOID LOSING POWER WHILE GIVING THE APPEARANCE OF SHARING POWER Hidden Agendas in Organizational Change Image Source/Alamy Some managers are afraid of losing power while sharing power during organizational change So, they resort to hidden agendas They handpick key members to be on change teams They ask them to also take prominent roles in discussions and support only the “right” ideas The goal is to make sure that change heads in the preferred direction while still giving everyone a sense of being included and empowered It’s a way of sharing power but still getting your way ETHICS QUESTIONS S haring power is a popular choice for change strategy It means allowing others to have a role in decision making and be involved throughout the change process It gets a lot of good ideas on the table and helps generate all-important “buy-in” to support the proposed change But, suppose the ideas offered and the ensuing conversations move in a direction that top management thinks is the wrong pathway? What happens then? Although this situation happens frequently in organizations, does that make it right? What are the ethical issues involved? When is such an approach more or less likely to be ethical? As a manager, would you handpick the leaders of a change effort in order to get your way—even if that meant that alternative points of view were excluded from the process? What if your boss selected you to represent your department on a task force just because you agreed with his or her favored approach? If you knew that most people in your department disagreed, would you what your boss wanted or would you try to represent the wishes of the majority of your department? Find more at http://www.downloadslide.com Organizational Change Change leaders Status quo managers Confident of ability Willing to take risks Seize opportunity Expect surprises Make things happen Threatened by change Bothered by uncertainty Prefer predictability Support the status quo Wait for things to happen promote and actively support Creativity and innovation avoid and even discourage 307 FIGURE 12.3 Change leaders F vversus status quo managers culture But when speaking to employees as a change leader, she also says: “When we’re in the family, you don’t have to be as nice as when you’re outside the family I want us to stay civil and kind, but we have to be frank—and the reason we can be frank is because we’re all in the same family.”40 Top-Down Change Top-down change is where senior managers initiate changes with the goal of improving organizational performance Although it sounds straightforward, research indicates that some 70% or more of large-scale change efforts in American firms actually fail; only 20% of European firms report “substantial success” with large-scale change, while 63% report “occasional” success.41 The most common reason for the failure of top-down change is poor implementation And without doubt, people are more committed to implement plans that they have played a part in creating Change programs have little chance of success without the support of those who must implement them Any change that is driven from the top and perceived as insensitive to the needs of lower-level personnel can easily fail As the lessons in Management Smarts show, successful top-down change is led in ways that earn the support of others throughout the organization.42 In top-down change, the change initiatives come from senior management Bottom-Up Change Bottom-up change tries to tap into ideas and initiative at lower organizational lev- In bottom-up change, change initiatives els and let them percolate upward Such change is made possible by management come from all levels in the organization commitments to empowerment, involvement, and participation Many organizations are so large it is easy for good ideas to get lost One way to unlock the potential for bottomup change is through “diagonal slice meetings” where top managers meet with samples of workers from across functions and levels They solicit ideas How to lead organizational change about what might be wrong and what • Establish a sense of urgency for change changes might be made to improve • Form a powerful coalition to lead the change things Another way is to build an or• Create and communicate a change vision ganizational culture around the belief • Empower others to move change forward that workers should be encouraged to • Celebrate short-term “wins” and recognize those who help use their job knowledge and common • Build on success; align people and systems with the new ways sense to improve things • Stay with it; keep the message consistent; champion the vision At General Electric, former CEO Jack Welch harnessed bottom-up change ManagementSmarts Find more at http://www.downloadslide.com 308 O RGANIZATION CULTURE A N D CHANGE through a widely benchmarked program called Work-Out In Work-Out sessions employees confront their managers in a “town meeting” format with the manager in front listening to suggestions The managers are expected to respond immediately and support positive change initiatives raised during the session Welch felt that approaches like this facilitate change because they “bring an innovation debate to the people closest to the products, services, and processes.”43 Incremental and Transformational Change Planned changes at top levels are likely to be large-scale and strategic repositioning changes focused on big issues that affect the organization as a whole Lowerlevel changes often deal with adjustments in structures, systems, Organizational Change Pyramid technologies, products, and people to support strategic positioning Both types of changes—incremental and transformational— are important in the organizational change pyramid shown here.44 Few strategic, Incremental change is modest, frame-bending change It basilarge-scale changes to cally bends or nudges existing systems and practices to better align reposition organization them with emerging problems and opportunities The intent isn’t Major changes to improve to break and remake the system, but to move it forward through performance through new structures, systems, technologies, continuous improvements Common incremental changes in orproducts, and people ganizations involve evolutions in products, processes, technoloFrequent, smaller-scale changes gies, and work systems Transformational change, by contrast, to fine tune performance, enable shortterm gains, and provide continuous is radical or frame-breaking change that results in a major and improvements in operations comprehensive redirection of the organization.45 It is usually led from the top and creates fundamental shifts in strategies, culture, structures, and even the underlying sense of purpose or mission Incremental change bends and adjusts existing ways to improve performance Incremental changes keep things tuned up—like the engine in a car, in between transformations—as when the old car is replaced with a new one Transformational change results in a major and comprehensive redirection of the organization Phases of Planned Change Managers seeking to lead change in organizations can benefit from a simple but helpful model developed many years ago by the psychologist Kurt Lewin He recommends that any planned change be viewed as a process with the three phases Phase is unfreezing—preparing a system for change; phase is changing—making actual changes in the system; and phase is refreezing—stabilizing the system after change.46 In today’s fast-paced organizational environments we can also talk about another phase called improvising—making adjustments as needed while change is taking place.47 Unfreezing Unfreezing is the phase during which a situation is prepared for change Planned change has a better chance for success when people are ready for it and open to doing things differently Unfreezing is the phase in which a situation is prepared for change and felt needs for change are developed The goal is to get people to view change as a way of solving a problem or pursuing an opportunity Some call unfreezing the “burning bridge” phase of change, arguing that in order to get people to jump off a bridge you might just have to set it on fire Managers can Find more at http://www.downloadslide.com Organizational Change Change leader’s task: create a felt need for change Phase Unfreezing 309 FIGURE 12.4 Lewin’s three phases F of planned organizational change o This is done by: Establishing a good relationship with the people involved Helping others realize that present behaviors are not effective Minimizing expressed resistance to change Change leader’s task: implement change Phase Changing This is done by: Identifying new, more effective ways of behaving Choosing changes in tasks, people, culture, technology, structures Taking action to put these changes into place Change leader’s task: stabilize change Phase Refreezing This is done by: Creating acceptance and continuity for the new behaviors Providing any necessary resource support Using performance-contingent rewards and positive reinforcement simulate the burning bridge by engaging people with facts and information that communicate the need for change—environmental pressures, declining performance, and examples of benchmarks or alternative approaches And as you have probably experienced, conflict can help people to break old habits and recognize new ways of thinking about or doing things Errors at the unfreezing stage include not creating a sense of urgency for change and neglecting to build a coalition of influential persons who support it Changing Figure 12.4 shows that unfreezing is followed by the changing phase, where actual changes are made in such organizational targets as tasks, people, culture, technology, and structure Lewin believes that many change agents commit the error of entering the changing phase prematurely They are too quick to change things and end up creating harmful resistance In this sense the change process is like building a house; you need to put a good foundation in place before you begin the framing If you try to implement change before people are prepared and feel a need for it, there is an increased likelihood of failure Changing is the phase where a planned change actually takes place Refreezing The final phase in Lewin’s planned change process is refreezing Here, the manager is concerned about stabilizing the change Refreezing is accomplished by linking change with appropriate rewards, positive reinforcement, and resource support It is important in this phase to evaluate results, provide feedback to the people involved, and make any required modifications in the original change Refreezing is the phase at which change is stabilized Find more at http://www.downloadslide.com 310 O RGANIZATION CULTURE A N D CHANGE When refreezing is done poorly, changes are too easily forgotten or abandoned with the passage of time The most common error at the refreezing stage is declaring victory too soon and withdrawing support before the change is really fixed in normal routines Also, in today’s dynamic environments there may not be a lot of time for refreezing before things are ready to change again We end up preparing for more change even before the present one is fully implemented Improvising Improvisational change makes continual adjustments as changes are being implemented Although Lewin’s model depicts change as a linear, step-by-step process, the reality is that change is dynamic and complex Managers must not only understand each phase of planned change, they must be prepared to deal with them simultaneously They should also be willing to engage in the process of improvisational change where adjustments are continually made as things are being implemented.48 Consider the case of bringing new technology into an organization or work unit A technology that is attractive in concept may appear complicated to the new users The full extent of its benefits or inadequacies may not become known until it is tried A change leader can succeed in such situations by continually gathering feedback on how the change is going and then improvising to revise and customize the new technology to best meet users’ needs Change Strategies Strategy is a major issue when a manager actually tries to move people and systems toward change Figure 12.5 summarizes three common strategies used to make things happen during the planned change process—force-coercion, rational persuasion, and shared power.49 Managers, as change agents and leaders, should understand each strategy and its likely results Force-Coercion Strategies A force-coercion strategy pursues change through formal authority and/or the use of rewards or punishments FIGURE 12.5 Alternative change strategies and their leadership implications A force-coercion strategy uses formal authority as well as rewards and punishments as the primary inducements to change A change agent that seeks to create change through force-coercion believes that people are motivated by self-interest and by what the situation offers in terms of potential personal gains or losses.50 Change Strategy Power Bases Managerial Behavior Direct forcing and unilateral action Force–Coercion Legitimacy Using formal authority to create change by decree and position power Rewards Rational Persuasion Expertise Informational efforts using credible knowledge, demonstrated facts, and logical argument Reference Participative efforts to share power and involve others in planning and implementing change Punishments Creating change through rational persuasion and empirical argument Shared power Developing support for change through personal values and commitments Political maneuvering and indirect action Likely Results Faster, but low commitment and only temporary compliance Slower, but high commitment and longerterm internalization Find more at http://www.downloadslide.com Organizational Change 311 In direct forcing, the change agent takes direct and unilateral action to “command” that change take place In political maneuvering, the change agent works indirectly to gain special advantage over other persons and thereby make them change This involves bargaining, obtaining control of important resources, forming alliances, or granting small favors The force-coercion strategy of change usually produces limited results Although it can be quickly tried, most people respond to this strategy out of fear of punishment or hope for a reward The likely outcome is temporary compliance; the new behavior continues only as long as the rewards and punishments are present For this reason, force-coercion may be most useful as an unfreezing strategy that helps people break old patterns and gain willingness to try new ones The earlier example of General Electric’s Work-Out program applies here.51 Jack Welch started Work-Out to create a forum for active employee empowerment of continuous change But he didn’t make the program optional; participation in Work-Out was mandatory Part of Welch’s commitment to change leadership was a willingness to use authority to unfreeze the situation and get Work-Out started Once the program was under way, he was confident it would survive and prosper on its own—and it did Rational Persuasion Strategies Change agents using a rational persuasion strategy attempt to bring about change through persuasion backed by special knowledge, empirical data, and rational argument A change agent following this strategy believes that people are inherently rational and guided by reason Once the value of a specific course of action is demonstrated by information and facts, the change agent assumes that reason and rationality will cause the person to adopt it A good rational persuasion strategy helps both unfreeze and refreeze a change situation Although slower than forcecoercion, it can result in longer-lasting and more internalized change To succeed with the rational persuasion strategy, a manager must convince others that a change will leave them better off than before This persuasive power can come directly from the change agent if she or he has personal credibility as an A rational persuasion strategy pursues change through empirical data and rational argument Recommended Reading Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation (HarperCollins, 2009) by Tim Brown ©Euler/AP/Wide World Photos Tim Brown is CEO of the respected design firm IDEO, serving clients like Fisher-Price, Procter & Gamble, and Target He says that organizations that unlock “design thinking” can achieve radical and highly beneficial changes that improve performance dramatically Brown describes design thinking as combining “the designer’s creative problem-solving skills” with the “larger strategic initiatives” of the organization An example is IDEO’s work with Kaiser Permanente health centers After a team brought together design experts, nurses, and technologists, they ended up making major changes in how nurses staff hospital shifts Find more at http://www.downloadslide.com 312 O RGANIZATION CULTURE A N D CHANGE “expert.” It can also be borrowed in the form of advice from consultants and other outside experts, or gained from credible demonstration projects and identified benchmarks Many firms, for example, benchmark Disney to demonstrate to their own employees the benefits of a customer-oriented culture A Ford vice president says: “Disney’s track record is one of the best in the country as far as dealing with customers.”52 In this sense, the power of rational persuasion is straightforward: if the culture works for Disney, why can’t it work for us? Shared Power Strategies A shared power strategy uses collaboration to identify values, assumptions, and goals from which support for change will naturally emerge Sometimes called a normative– reeducative strategy, this approach is empowerment based and highly participative It involves others in examining personal needs and values, group norms, and operating goals as they relate to the issues at hand Power is shared as the change agent and others work together to develop consensus to support needed change Because it entails a high level of involvement, this strategy is often slow and time consuming But power sharing is likely to result in longer-lasting, internalized change A change agent shares power by recognizing that people have varied needs and complex motivations He or she understands that organizational changes involve changes in attitudes, values, skills, and significant relationships, not just changes in knowledge, information, or practices Thus, this change agent is sensitive to the way group pressures can support or inhibit change Every attempt is made to gather opinions, identify feelings and expectations, and incorporate them fully into the change process The great “power” of sharing power in the change process lies with unlocking the creativity, experience, and energies of people within the system Some managers hesitate to engage this strategy for fear of losing control or of having to compromise on important organizational goals But Harvard scholar Teresa M Amabile points out that they should have Why People May Resist Change the confidence to share power regard• Fear of the unknown—not understanding what is happening or what ing means and processes, if not overall comes next goals “People will be more creative,” she • Disrupted habits—feeling upset to see the end of the old ways of doing says, “if you give them freedom to decide things how to climb particular mountains You • Loss of confidence—feeling incapable of performing well under the new needn’t let them choose which mounways of doing things tains to climb.”53 A shared power strategy pursues change by participation in assessing change needs, values, and goals ManagementSmarts • Loss of control—feeling that things are being done “to” you rather than “by” or “with” you • Poor timing—feeling overwhelmed by the situation or that things are moving too fast • Work overload—not having the physical or emotional energy to commit to the change • Loss of face—feeling inadequate or humiliated because the “old” ways weren’t “good” ways • Lack of purpose—not seeing a reason for the change and/or not understanding its benefits Resistance to Change When people resist change, they are most often defending something important to them that now appears threatened A change leader can learn a lot by listening to resistance and then using it as a resource for improving the change and change process.54 Check the common Find more at http://www.downloadslide.com Organizational Change 313 RESEARCH BRIEF Top Management Must Get—and Stay—Committed for Shared Power to Work in Tandem with Top-Down Change H arry Sminia and Antonie Van Nistelrooij’s case study of a public-sector organization in the Netherlands sheds light on what happens when top-down change and organization development based on shared power are used simultaneously Writing in the Journal of Change Management, they describe how top management initiated a strategic change involving organization design, procedures, work standards, and systems Called the “project strand,” this change was Intended and Realized Change Project strand Top-down Intended change pathways Both change efforts work together Change strand Shared power well structured with deadlines and a management hierarchy Simultaneously, a “change strand” was initiated with organization development interventions to develop information and create foundations helpful to the success of the project strand The change strand involved conferences, workshops, and meetings The goal was for both strands to operate in parallel and eventually converge in joint implementation What the researchers found was that top management favored the project strand and resisted challenges to its decision-making prerogatives that came from the change strand Eventually, the shared power aspects of the change pretty much disappeared and activities centered around completing the project on schedule Sminia and Van Nistelrooij conclude that the change was hampered by “management refusal to share power with the employees.” YOU BE THE RESEARCHER Project strand Top-down Realized change pathways Top-down change dominates Change strand Shared power Is it realistic to expect that top-down and bottom-up changes can operate simultaneously? Can any shared power change strategy be successful without full and continuing support from top management? How would you design research projects to test these questions? Reference: Harry Sminia and Antonie Van Nistelrooij, “Strategic Management and Organizational Development: Planned Change in a Public Sector Organization,” Journal of Change Management, vol (March 2006), pp 99–113 sources of resistance as shown in Management Smarts Surely you’ve seen some or all of them And honestly, haven’t you been a resistor at times? Instead of viewing resistance as something that must be “overcome,” it’s often better viewed as feedback The presence of resistance usually means that something can be done to achieve a better “fit” among the planned change, the situation, and the people involved Things to check when listening to feedback for clues on how to improve the change process include the following.55 Check the benefits—Make sure the people involved see a clear advantage in making the change People should know “what is in it for me” or “what is in it for our group or the organization as a whole.” Check the compatibility—Keep the change as close as possible to the existing values and ways of doing things Minimizing the scope of change helps keep it more acceptable and less threatening Find more at http://www.downloadslide.com 314 O RGANIZATION CULTURE A N D CHANGE Check the simplicity—Make the change as easy as possible to understand and use People should have access to training and assistance to make the transition to new ways as easy as possible Check the triability—Allow people to try the change little by little, making adjustments as they go Don’t rush the change, and be sure to adjust the timing to best fit work schedules and cycles of high/low workloads In addition to these checkpoints, there are other positive ways to deal with resistance to change.56 Education and communication uses discussions, presentations, and demonstrations to educate people beforehand about a change Participation and involvement allows others to contribute ideas and help design and implement the change Facilitation and support provides encouragement and training, actively listens to problems and complaints, and finds ways to reduce performance pressures Negotiation and agreement provides incentives to gain support from those who are actively resisting or ready to resist Two other approaches for managing resistance are common, but they are also risky in terms of negative side effects Manipulation and co-optation tries to covertly influence others by selectively providing information and structuring events in favor of the desired change Explicit and implicit coercion forces people to accept change by threatening resistors with undesirable consequences if they don’t what is being asked LEARNING CHECK TAKEAWAY QUESTION What is the nature of organizational change? Be sure you can • define change leader and change agent • discuss pros and cons of top-down change and bottom-up change • differentiate incremental and transformational change • describe Lewin’s three phases of planned change • discuss improvising as an approach to planned change • discuss pros and cons of the forcecoercion, rational persuasion, and shared power change strategies • list several reasons why people resist change • describe strategies for dealing with resistance to change Find more at http://www.downloadslide.com Management Learning Review 315 MANAGEMENT LEARNING REVIEW LEARNING CHECK SUMMARY TAKEAWAY QUESTION What is organizational culture? • Organizational culture is an internal environment that establishes a personality for the organization and influences the behavior of members • The observable culture is found in the rites, rituals, stories, heroes, and symbols of the organization; the core culture consists of the core values and fundamental beliefs on which the organization is based • In organizations with strong cultures, members behave with shared understandings and act with commitment to core values • Key dimensions of organizational culture include such things as innovation and risk taking, team emphasis, concern for people, and performance orientation • Among trends in managing organizational cultures, value-based management and workplace spirituality are popular directions and considerations For Discussion Of the various dimensions of organizational culture, which are most important to you as an employee? TAKEAWAY QUESTION What is a multicultural organization? • Multicultural organizations operate with internal cultures that value pluralism, respect diversity, and build strength from an environment of inclusion • Organizations have many subcultures, including those based on occupational, functional, ethnic, age, and gender differences • Challenges faced by members of minority subcultures in organizations include sexual harassment, pay discrimination, job discrimination, and the glass ceiling effect • Managing diversity is the process of developing an inclusive work environment that allows everyone to reach their full potential For Discussion What can a manager do, at the work team level, to reduce diversity bias in the workplace? TAKEAWAY QUESTION What is the nature of organizational change? • Change leaders are change agents who take initiative to change the behavior of people and organizational systems • Organizational change can proceed with a top-down emphasis, with a bottom-up emphasis, or a combination of both • Incremental change makes continuing adjustments to existing ways and practices; transformational change makes radical changes in organizational directions • Lewin’s three phases of planned change are unfreezing— preparing a system for change; changing—making a change; and refreezing—stabilizing the system • Change agents should understand the force-coercion, rational persuasion, and shared power change strategies • People resist change for a variety of reasons, including fear of the unknown and force of habit • Good change agents deal with resistance in a variety of ways, including education, participation, support, and facilitation For Discussion Can the refreezing stage of planned change ever be satisfied in today’s dynamic environments? SELF-TEST 12 Multiple-Choice Questions Pluralism and the absence of discrimination and prejudice in policies and practices are two important hallmarks of (a) the glass ceiling effect (b) a multicultural organization (c) quality circles (d) affirmative action When members of minority cultures feel that they have to behave in ways similar to the majority culture, this is called (a) biculturalism (b) symbolic leadership (c) the glass ceiling effect (d) inclusivity Find more at http://www.downloadslide.com 316 O RGANIZATION STRUCTU R E S AND DESIGN Engineers, scientists, and information systems specialists are likely to become part of separate subcultures in an organization (a) ethnic (b) generational (c) functional (d) occupational Stories told about an organization’s past accomplishments and heroes such as company founders are all part of what is called the culture (a) observable (b) underground (c) functional (d) core Honesty, social responsibility, and customer service are examples of that can become foundations for an organization’s core culture (a) rites and rituals (b) values (c) subsystems (d) ideas Which leadership approach is most consistent with an organizational culture that values the full utilization of all diverse talents of all the organization’s human resources? (a) Managing diversity (b) Affirmative action (c) Status quo (d) Rational persuasion When members of a dominant subculture, such as white males, make it hard for members of minority subcultures, such as women, to advance to higher level positions in the organization, this is called the effect (a) dominator (b) glass ceiling (c) brick wall (d) end-of-line An executive pursuing transformational change would give highest priority to which one of these change targets? (a) an out-of-date policy (b) the organizational culture (c) a new information system (d) job designs in a customer service department change results in a major change of direction for an organization, while makes small adjustments to current ways of doing things (a) Frame breaking; radical (b) Frame bending; incremental (c) Transformational; frame breaking (d) Transformational; incremental 10 The presence or absence of a felt need for change is a key issue in the phase of the planned change process (a) improvising (b) evaluating (c) unfreezing (d) refreezing 11 When a manager listens to users, makes adaptations, and continuously tweaks and changes a new MIS as it is being implemented, the approach to technological change can be described as (a) top-down (b) improvisational (c) organization development (d) frame breaking 12 A manager using a force-coercion strategy will rely on to bring about change (a) expertise (b) benchmarking (c) formal authority (d) information 13 The most participative of the planned change strategies is (a) force-coercion (b) rational persuasion (c) shared power (d) command and control 14 True internalization and commitment to a planned change is most likely to occur when a manager uses a(n) change strategy (a) education and communication (b) rational persuasion (c) manipulation and co-optation (d) shared power 15 Trying to covertly influence others, offering only selective information, and structuring events in favor of the desired change, is a way of dealing with resistance by (a) participation (b) manipulation and co-optation (c) force-coercion (d) facilitation Short-Response Questions 16 What core values might be found in highperformance organizational cultures? 17 Why is it important for managers to understand subcultures in organizations? 18 What are the three phases of change described by Lewin, and what are their implications for change leadership? 19 What are the major differences in potential outcomes of using the force-coercion, rational persuasion, and shared power strategies of planned change? Find more at http://www.downloadslide.com Management Skills and Competencies 317 Essay Question 20 Two businesswomen, former college roommates, are discussing their jobs and careers over lunch You overhear one saying to the other: “I work for a large corporation, while you own a small retail business In my company there is a strong corporate culture and everyone feels its influence In fact, we are always expected to act in ways that support the culture and serve as role models for others to so as well This includes a commitment to diversity and multiculturalism Because of the small size of your firm, things like corporate culture, diversity, and multiculturalism are not so important to worry about.” Do you agree or disagree with this statement? Why? MANAGEMENT SKILLS AND COMPETENCIES Further F urrth her R Refl efl flection: ecctio on: T Tolerance ollera ancce for for Ambiguity Ambig guitty The next time you are driving somewhere and following a familiar route only to encounter a “detour” sign, test your tolerance for ambiguity Is the detour just a minor inconvenience and you go forward without any further thought? Or is it a big deal, perhaps causing anxiety and anger, and showing tendencies to resist change in your normal routines? The chapter opener links tolerance for ambiguity with organizational cultures and the processes of organizational change People are being asked today to be ever more flexible in their work; organizations are, too Managers are expected to support change initiatives launched from the top; they are also expected to be change leaders in their own teams and work units This is a good time to check your readiness to meet career challenges cultures and change processes in today’s organizations DO IT NOW LOOK IN THE MIRROR • Write a short narrative describing your “ideal” employer in terms of organization culture, management styles, and frequency of major changes • Add a comment that explains how this ideal organization fits your personality, including insights from selfassessments completed in other chapters • What does this say about how you may have to change and adapt to make your career aspirations come true? Self-Assessment: S ellf Asssessm mentt: Change Chang ge Leadership Lea adeership p IQ Q Instructions Indicate whether each of the following statements is true (T) or false (F).57 T F People invariably resist change T F One of the most important responsibilities of any change effort is that the leader clearly describes the expected future state T F Communicating what will remain the same after change is as important as communicating what will be different T F Planning for change should be done by a small, knowledgeable group, and then that group should communicate its plan to others T F Managing resistance to change is more difficult than managing apathy about change T F Complaints about a change effort are often a sign of change progress T F Leaders find it more difficult to change organizational goals than to change the ways of reaching those goals Find more at http://www.downloadslide.com 318 O RGANIZATION STRUCTU R E S AND DESIGN T F Successful change efforts typically involve changing reward systems to support change T F Involving more members of an organization in planning a change increases commitment to making the change successful Scoring Questions 2, 3, 6, 8, 9, 10 are true; the rest are false Tally the number of correct items to indicate the extent to T F 10 Successful organizational change requires certain significant and dramatic steps or “leaps,” rather than moderate or “incremental” ones which your change management assumptions are consistent with findings from the discipline Team Exercise: Force-Field Analysis Instructions Form into your class discussion groups and review this model of force-field analysis—the consideration of forces driving in support of a planned change and forces resisting the change Use force-field analysis and make lists of driving and resisting forces for one of the following situations: Driving forces Resisting forces Current state Desired future state (a) “Home Schooling” at College Level Things are changing in colleges and universities as budget declines create pressures for a rethinking of educational programming Home schooling has grown popular at primary and secondary levels Why can’t it work for college as well, at least for the first two years? At least one vice president at the local university is in favor of making a proposal to move her campus to a 3rd/4th-yearonly status and have years and go online She wonders what she should prepare for when sharing her ideas with the rest of the executive team (b) Scheduling Dilemma A new owner has just taken over a small walk-in-and-buy-by-the-slice pizza shop in a college town There are presently eight employees, three of whom are full-time and five of whom are part-time The shop is open seven days a week from 10:30 A.M to midnight The new owner believes there is a market niche available for late-night pizza and would like to stay open each night until A.M She wants to make the change as soon as possible (c) Instructor’s Choice A situation assigned by the instructor Choose the three driving forces that are most significant for the proposed change For each force, develop ideas on how it could be further increased or mobilized in support of the change Choose the three resisting forces that are most significant for the proposed change For each force, develop ideas on how it could be reduced or turned into a driving force Be prepared to participate in a class discussion led by your instructor Find more at http://www.downloadslide.com Case Study 319 Career Situations for Organizational Culture and Change: What Would You Do? Two Job Offers You will soon have to choose between two really nice job offers They are in the same industry, but you wonder which employer would be the “best fit.” You have a sense that their “cultures” are quite different Fortunately, you’ve been invited back to spend a full day at each before making your decision One of your friends suggests that doing a balance-sheet assessment of cultural pluses and minuses for each employer could be helpful What aspects of organizational culture would you identify as important to your job choice? Given the items on the list, what can you look for or in the coming visits to discover the real organizational cultures pluses and minuses for each item? Team Culture Nightmare The promotion to team manager puts you right where you want to be in terms of career advancement Even though you’ve had to move to a new location it’s a great opportunity if you can well as team leader That’s the problem Now that you’re in the job you realize that the culture of the team is really bad Some of the ways you’ve heard members describe it to one another are “toxic,” “dog-eat-dog,” “watch your back,” and “keep your head down.” Realizing that culture change takes time but that’s it’s also necessary in this situation, what can you right away as the new team leader to set the team on course for a positive change to its culture? Tough Situation Times are tough at your organization, and, as the director of human resources, you have a problem The company’s senior executives have decided that 10% of the payroll has to be cut immediately Instead of laying off about 30 people, you would like to have everyone cut back their work hours by 10% This way the payroll would be cut but everyone would get to keep their jobs But you’ve heard that this idea isn’t popular with all the workers Some are already grumbling that it’s a “bad idea” and the company is just looking for excuses “to cut wages.” How can you best handle this situation as a change leader? Case Study Apple Inc Go to Management Cases for Critical Thinking to find the recommended case for Chapter 12—“Apple Inc.: People and Design Create the Future.” Over a span of more than 30 years, Apple Computer has generated some of America’s greatest business successes and has also experienced major failures Apple Inc ignited the personal computer industry in the 1970s with a major challenge to behemoth IBM The company then stagnated as cofounder Steve Jobs was ousted from leadership and a series of CEOs lost opportunities It rebounded tremendously when Jobs returned as CEO Now Jobs has died and the firm faces new challenges in trying to live up to his legacy in a hugely competitive business world Apple represents a fascinating microcosm of American business as it continues to leverage its strengths while reinventing itself With the world reveling in iPads, iPods, iPhones, and iMacs, what’s next for a firm that continues to face a tough economy and stiff competition without its founder and guiding genius? Find more at http://www.downloadslide.com HUM AN RESOURCE MANAG E MENT © Purestock/Age Fotostock America, Inc 320 Wisdom Learning From Others MORE TO LOOK FOR INSIDE> > GREAT EMPLOYERS RESPECT DIVERSITY AND VALUE PEOPLE Working Mother magazine’s annual listing of the “100 Best Companies for Working Mothers” is a management benchmark—both for employers that want to be able to say that they are among the best and for potential employees who only want to work for the best Employers like IBM, Johnson & Johnson, American Express, Marriott International, Merck, and Procter & Gamble are regulars on the list Top practices of the “100 Best Companies” include flextime, telecommuting, and maternity leave, compressed work weeks, and job-sharing opportunities These firms are also strong on mentoring programs Companies on the Working Mother list stand out for providing employees with services that help working moms achieve work–life balance Teddi Hernandez, an employee of Hallmark Cards, was able to adopt her five children by using the company’s generous allowances for time off and adoption aid When one child was diagnosed with Asperger’s Syndrome, the company allowed Teddi to reduce her work schedule 20 hours per week, enough to keep the company-sponsored family health insurance Hernandez also attends Hallmark’s support group for parents of children with autism.1 Working Mother is a major supporter of mothers with careers Self-described as helping women “integrate their professional lives, their family lives and their inner lives,” the magazine covers timely issues and highlights the challenges and needs experienced by working women FOLLOW THE STORY FACTS FOR ANALYSIS Tony Hsieh Taps HRM to Keep Zappos One Step Ahead Underemployment Affects One-Fifth of U.S Workers ETHICS ON THE LINE RESEARCH BRIEF Personality Test? Drug Test? Facebook Test? Racial Bias May Exist in Supervisor Ratings of Workers ... Schermerhorn, John R Management / John R Schermerhorn — 12 th ed p cm ISBN 978 -1- 118 -11 392-9 (cloth) Management I Title HD 31. S3325 2 013 658—dc23 978 -1- 118 -11 392-9 (Main Book ISBN) 978 -1- 118 -39742-8 (Binder-Ready... Strategic Management 238 Part Four Organizing Organization Structures and Design 268 12 Organization Culture and Change 294 13 Human Resource Management 320 Part Five Leading 14 11 15 16 17 18 Management. .. Conditions 91 108 Global Management 10 9 Why Companies Go Global 11 0 How Companies Go Global 11 0 Global Business Environments 11 3 Global Businesses 11 7 Types of Global Businesses 11 7 Pros and