Unit 4 Human Resource Management Its Purpose and The Three Concepts Important to It? The Complete sections should have a minimum word count (total per week

Unit 4 Human Resource Management Its Purpose and The Three Concepts Important to It? The Complete sections should have a minimum word count (total per week) of 1200 words and three scholarly sources. Approved sources for this course include the course textbook and scholarly articles from the Bethel library databases. No other source information is acceptable. EVERYTHING NEEDS TO BE IN OWN WORDS. 1.What is human resource management, its purpose, and describe the three concepts important
to it?
2.What is performance management and the four steps involved with it?
3.Describe orientation, training, and development.
4.If you were a consultant for your place of employment, what advice would you give to senior
management about improving the organization’s performance management culture, employee
orientation, training and development? If you are currently not employed, research an
organization and provide a recommendation.
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ORGANIZING
Organizational Culture,
Structure, & Design
Building Blocks of the Organization
W
I Should Be Able to Answer
Major Questions You
L
L Culture, & Structure
8.1 Aligning Strategy,
Major Question:
I Why is it important for managers to align a
company’s vision and strategies with its organizational culture
and structure? S
,
8.2 What Kind of Organizational Culture Will You
Be Operating In?
K
Major Question: How do I find out about an organization’s
“social glue,” its
Anormal way of doing business?
S
8.3 The Process of Culture Change
S What can be done to an organization’s culture
Major Question:
to increase its economic
performance?
A
N
8.4 Organizational Structure
DHow are for-profit, nonprofit, and mutual-benefit
Major Question:
organizations structured?
R
A
8.5 The Major Elements of an Organization
Major Question: When I join an organization, what seven
elements should
2 I look for?
1
8.6 Basic Types of Organizational Structures
6 How would one describe the seven
Major Question:
organizational structures?
1
T
8.7 Contingency Design: Factors in Creating
S
the Best Structure
Major Question: What factors affect the design of
an organization’s structure?
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the manager’s toolbox
How to Stand Out in a New Job: Fitting into
an Organization’s Culture in the First 60 Days
“Once you are in the real world—and it doesn’t make
any difference if you are 22 or 62, starting your first
job or your fifth,” say former business columnists
Jack and Suzy Welch, “the way to look great and get
ahead is to overdeliver.”1
Overdelivering means doing more than what is
asked of you—not just doing the report your boss reW
quests, for example, but doing the extra research to
provide him or her with something truly impressive. I
Among things you should do in the first 60 days:2
L
Be Aware of the Power of First Impressions
L
Within three minutes of meeting someone new, people
I
form an opinion about where the future of the relationship is headed, according to one study.3 “When meet- S
ing someone for the first time, concentrate on one
,
thing: your energy level,” advises one CEO, who thinks
that seven seconds is all the time people need to start
making up their minds about you. Amp it up, he ad- K
vises. “If you don’t demonstrate energetic attitude on
your first day, you’re already screwing up.”4 (However, A
don’t be too upset if you feel you’ve blown it with
S
someone on the first meeting. What’s key is to make
sure you have other chances to meet that person againS
so that you can show different sides of yourself.5)
A
Come in 30 Minutes Early & Stay a Little Late toN
See How People Behave
D
“Many aspects of a company’s culture can be subtle
and easy to overlook,” writes one expert. “Instead, R
observe everything.” Thus, try coming in early and A
staying a little late just to observe how people
operate—where they take their lunches, for example.
forecasst
Get to Know Some People & Listen to What
They Have to Say
“You’ve got to realize that networking inside a company is just as important as when you were networking on the outside trying to get in,” says a business
consultant.6 During the first two weeks, get to know a
few people and try to have lunch with them. Find out
how the organization works, how people interact with
the boss, what the corporate culture encourages and
discourages. Walk the halls and get to know receptionists, mail room clerks, and office managers, who
can help you learn the ropes. Your role here is to listen, rather than to slather on the charm. Realize that
you have a lot to learn.7
Make It Easy for Others to Give You Feedback
Ask your boss, coworkers, and subordinates to give
you feedback about how you’re doing. Be prepared
to take unpleasant news gracefully.8 At the end of
30 days, have a “How am I doing?” meeting with
your boss.
Overdeliver
Because performance reviews for new hires generally
take place at 60 to 90 days, you need to have accomplished enough—and preferably something big—
to show your boss your potential. In other words, do
as the Welches suggest: overdeliver.
For Discussion How does the foregoing advice
square with your past experiences in starting a new
job? Are there things you wish you could have done
differently?
2
1
6
1
T
What’s Ahead
S
in This Chapter
We consider organizational cultures and organizational structures, and how they should be
aligned to help coordinate employees in the pursuit of organization’s strategic goals. We
then consider the three types of organizations and seven basic characteristics of an organization. We next discuss seven types of organizational structures. Finally, we look at five
factors that should be considered when one is designing the structure of an organization.
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8.1
MAJOR
QUESTION
?
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Organizing
Aligning Strategy, Culture, & Structure
Why is it important for managers to align a company’s vision and strategies with its
organizational culture and structure?
THE BIG PICTURE
The study of organizing, the second of the four functions in the management process, begins with the study
of organizational culture and structure, which managers must determine so as to implement a particular
strategy. Organizational culture consists of the set of shared, taken-for-granted implicit assumptions that a
group holds in the workplace. Organizational structure describes who reports to whom and who does what.
W
I
“What’s your favorite movie?” the
L job interviewer asks you. “Your favorite website?”
“What’s the last book you read for fun?” “What makes you uncomfortable?”
L asked interview questions used by hiring managThese are the four most frequently
ers, according to a survey involving
I 285,000 kinds of interview questions.9 For you as
a job applicant, these questions might not seem to have much to do with your performance in previous jobs. Rather, S
they are designed to see whether you will fit in with
the company’s culture, or organizational
culture, as we’ll explain.10
,
What Does It Mean K
to “Fit”? Anticipating
A
a Job Interview
S
S your personality and values match the climate and
which reflects the extent to which
culture in an organization.
A
A good fit of this kind is important because it is associated with more positive work
N stress, and fewer expressions of intention to quit
attitudes and task performance, lower
11
(“I’m gonna tell em, ‘Take this job
D and . . .’”). How well an applicant will fit in with
the institution’s organizational culture is considered a high priority by many interviewR evaluators in one study considered “fit” to be the
ers. Indeed, more than 50% of the
most important criterion of the interview
process.12
A
The kind of fit we are concerned with here is what is called person-organization fit,
How can you determine how well you might fit in before you go into a job interview? You should write down your strengths, weaknesses, and values—and then do the
same for the organization you’re2interviewing with, by researching it online and talking with current employees. You can then prepare questions to ask the interviewer
about how well you might fit. 1
Example: If being recognized
6 for hard work is important to you, ask the interviewer how the company rewards performance. If the answer doesn’t show a
1 and rewards (“Well, we don’t really have a polstrong link between performance
icy on that”), you’ll probablyThave a low person-organization fit and won’t be
happy working there.
S
How an Organization’s Culture & Structure Are Used
to Implement Strategy
How employees fit into an organization’s culture is important to the larger picture of
that organization’s strategy. Strategy, as we saw in Chapter 6, consists of the largescale action plans that reflect the organization’s vision and are used to set the direction for the organization. To implement a particular strategy, managers must determine
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Organizational Culture, Structure, & Design
CHAPTER 8
227
the right kind of (1) organizational culture and (2) organizational structure. Let’s
consider these terms.
Organizational Culture: The Shared Assumptions That Affect How Work
Gets Done We described the concept of culture in Chapter 4 on global management as “the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.” Here we are talking about a specific kind of culture called
an organizational culture.
According to scholar Edgar Schein, organizational culture, sometimes called
corporate culture, is defined as the set of shared, taken-for-granted implicit assumptions
that a group holds and that determines how it perceives, thinks about, and reacts to its
various environments.13 These are the beliefs and values
Wshared among a group of peo-
ple in the workplace that are passed on to new employees by way of socialization and
I all levels.14 This is the “social
mentoring, which significantly affect work outcomes at
glue” that binds members of the organization together.
L Just as a human being has a
personality—fun-loving, warm, uptight, competitive, or whatever—so an organization
L
has a “personality,” too, and that is its culture.
The culture helps employees understand why the organization
does what it does and
I
how it intends to accomplish its long-term goals. 3M sets expectations for innovation,
S which provides 30% of the
for example, by having an internship and co-op program,
company’s new college hires.
,
Culture can vary considerably, with different organizations having differing emphases on risk taking, treatment of employees, teamwork, rules and regulations, conflict
and criticism, and rewards. And the elements that drive
K an organization’s culture also
vary. They may represent the values of the founder, the industry and business environA
ment, the national culture, the organization’s vision and strategies, and the behavior of
S
leaders. (See Table 8.1.)
We thoroughly discuss organizational culture in Sections
S 8.2 and 8.3.
A
Organizational Structure: Who Reports to Whom
& Who Does What
N
Organizational structure is a formal system of task and reporting relationships that
D
coordinates and motivates an organization’s members
so that they can work
together to achieve the organization’s goals. As weRdescribe in Sections 8.4–8.6,
organizational structure is concerned with who reports to whom and who specializes
A
in what work.
Whether an organization is for-profit or nonprofit, the challenge for top managers is
to align the organization’s vision and strategies with its organizational culture and
2 boxes in the drawing below.
organizational structure, as shown in the two orange
(See Figure 8.1.)
1
FIGURE 8.1
Drivers of
culture
6
Drivers and flow of organizational culture1
T
Organizational
al
Organizational
al
culture
structure &
S
internal
Group &
social
processes
Work
attitudes &
behaviors
processes
Figure 8.1 shows that the consistency among these elements in turn impacts (see the
three green boxes) group and social processes (discussed in Chapters 13–15), individual work attitudes and behaviors (discussed in Chapters 11–12), and the organization’s overall performance. As you can see from the diagram, consistency across
strategy, culture, and structure leads to higher performance. ?
TABLE 8.1
What Drives an
Organizational Culture?
•
Founder’s values
•
Industry & business
environment
•
National culture
•
Organization’s vision &
strategies
•
Behavior of leaders
Overall
performance
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EXAMPLE
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Organizing
How Strategy Affects Culture & Culture Affects Structure: EndoStim,
a Medical Device Start-up, Operates Virtually
Nowadays a firm can be completely international. An example
is the medical device start-up EndoStim, nominally based in
St. Louis but operating everywhere.
The company, reports New York Times columnist Thomas
Friedman, came together as a result of some chance encounters:15 Cuban immigrant Raul Perez, a physician, came to
St. Louis, where he met Dan Burkhardt, a local investor, with
whom he began making medical investments. Perez also suffered from acid reflux (abnormal heartburn caused by stomach
acid rising in the esophagus) and went to Arizona for treatment
by an Indian-American physician, V. K. Sharma. During the visit,
Sharma proposed an idea for a pacemaker-like device to control the muscle that would choke off acid reflux.
The Strategy: Creating a New Medical Device. Perez,
Burkhardt, and Sharma all agreed they wanted to build such an
electrical-stimulation device. They joined forces with South
Africa–born Bevil Hogg, a founder of Trek Bicycle Corporation,
who became the CEO of the company they named EndoStim
and who helped to raise initial development funds. This strategy then began to dictate who they had to work with, which in
turn influenced the company’s culture and structure.
The Culture: An International “Adhocracy.” To advance their
strategy of building the device, the four principals recruited two
Israelis, a medical engineer and a gastroenterologist. The Israelis
collaborated with a Seattle engineering team to develop the design. A company in Uruguay specializing in pacemakers was lined
up to build the EndoStim prototype. It was arranged for the clinical
trials to be conducted in India and Chile. How much more international can you get?
Thus, the culture of the company could be called an
adhocracy, which (as we’ll describe a little later in the chapter)
is a risk-taking culture that values flexibility and creativity and
that is focused on developing innovative products.
The Structure: A Virtual, Boundaryless Company. As a very
lean start-up operating all over the world, with the principals
W in the same office at the same time, EndoStim is clearly
rarely
very
I different from, say, the usual top-down organization operating in one locality. To access the best expertise and high-quality
L
materials
and obtain low-cost manufacturing anywhere around
the
globe,
EndoStim thus was forced to take advantage of all the
L
technological tools—teleconferencing, e-mail, the Internet, and
I
faxes—to maintain communications.
SThis EndoStim structure, then, is that of a virtual, boundaryless organization—virtual, because its members are operating
,
geographically apart, connected by electronic means, and
boundaryless, because the members (whether coworkers or
suppliers)
come together in fluid, flexible ways on an as-needed
K
basis. We describe these structures further in another few pages.
A
S CALL
YOUR
Are
Syou comfortable enough to work in a virtual, boundaryless
organization? Many people like the social interaction that
A
comes with working in a physical office with other people. OthN however, are turned off by the office game playing and
ers,
time-wasting activities that seem to be a necessary concomiD
tant. They welcome the opportunity to do task-oriented work in
aR
makeshift home office, occasionally having to cope with
loneliness
and restlessness. Which would you favor?
A
2
1
6
1
T
S
Culture of risk. At Pfizer Inc.,
a Connecticut pharmaceutical
company, drug discovery is a
high-risk, costly endeavor in
which hundreds of scientists
screen thousands of chemicals
against specific disease
targets, but 96% of these
compounds are ultimately
found to be unworkable.
The culture, then, is one
of managing failure and
disappointment, of helping
drug researchers live for
small victories.
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Organizational Culture, Structure, & Design
8.2
MAJOR
QUESTION
?
CHAPTER 8
229
What Kind of Organizational Culture Will You be
Operating In?
How do I find out about an organization’s “social glue,” its normal way of doing business?
THE BIG PICTURE
Organizational cultures can be classified into four types: clan, adhocracy, market, and hierarchy. Organizational culture appears as three layers: observable artifacts, espoused values, and basic assumptions. Culture
is transmitted to employees in symbols, stories, heroes, and rites and rituals.
W
Want to get ahead in the workplace but hate the idea of “office politics”?
I
Probably you can’t achieve the first without mastering the second. Although hard
work and talent can take you a long way, “there is a point
L in everyone’s career where
politics becomes more important,” says management professor Kathleen Kelley
L
Reardon. You have to know the political climate of the company you work for, says
Reardon, who is author of The Secret Handshake and IIt’s All Politics.16 “Don’t be the
last person to understand how people get promoted, how
S they get noticed, how certain
projects come to attention. Don’t be quick to trust. If you don’t understand the political
machinations, you’re going to fail much more often.”17,
A great part of learning to negotiate the politics—that is, the different behavioral and
psychological characteristics—of a particular office means learning to understand the organization’s culture. The culture consists not only of theK
slightly quirky personalities you
encounter but also all of an organization’s normal way ofAdoing business, as we’ll explain.
S
Four Types of Organizational Culture:
S Clan,
Adhocracy, Market, & Hierarchy A
According to one common methodology known as the
Ncompeting values framework,
organizational cultures can be classified into four types: (1) clan, (2) adhocracy,
D
(3) market, and (4) hierarchy.18 (See Figure 8.2.)
R
A
Flexibility and discretion
Clan
Adhocracy
Thrust: Collaborate
Means: Cohesion, participation,
communication, empowerment
Internal focus
and integration
2
1
Means: Adaptability, creativity,
6
agility
1
Ends: Innovation, growth,
cutting-edge
output
T
S Market
Thrust: Create
Ends: Morale, people
development, commitment
Hierarchy
Thrust: Control
Thrust: Compete
Means: Capable processes,
consistency, process control,
measurement
Means: Customer focus, productivity,
enhancing competitiveness
Ends: Efficiency, timeliness,
smooth, functioning
Ends: Market share, profitability, goal
achievement
Stability and control
FIGURE 8.2
Competing values
framework
Adapted from K.S. Cameron,
R.E. Quinn, J. Degraff, and A.V.
Thakor, Competing Values
Leadership (Northampton, MA:
Edward Elgar, 2006)., p. 32.
External focus and
differentiation
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Organizing
1. Clan Culture: An Employee-Focused Culture Valuing Flexibility, Not Stability
A clan culture has an internal focus and values flexibility rather than stability and control.
Like a family-…
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